Archive · 21 Nov 2025
SEBI Reviews Analyst Fee Unbundling, Short Selling Norms, and Debt PMS Surge
The Securities and Exchange Board of India (SEBI) is reviewing several regulations, including analyst fee unbundling, short selling norms, and the Stock Lending & Borrowing (SLB) framework.
Meanwhile, Debt Portfolio Management Services (PMS) are becoming more popular among High Net Worth Individuals (HNIs) due to their customization, despite higher fees compared to mutual funds.
SEBI reassessing analyst fee unbundling due to limited success in other markets
Review of short selling norms and Stock Lending & Borrowing (SLB) framework underway
Debt Portfolio Management Services (PMS) gaining popularity among High Net Worth Individuals (HNIs)
Debt PMS offers customisation but charges higher fees compared to mutual funds
SEBI to consider further policy actions in the derivatives segment
- Who
- SEBI, HNIs, Debt PMS providers
- What
- Review of regulations and growth of Debt PMS
- When
- Ongoing, with SEBI board meeting in December 2025
- Where
- India
- Why
- To improve market efficiency, encourage participation, and cater to sophisticated investors
PMS Industry
Mutual Fund Industry
Customisation vs Standardisation
PMS Industry
PMS offers tailored portfolio construction based on specific cash flow needs or liability-matching requirements
Mutual Fund Industry
Mutual funds benefit from repository-scale research, regulatory safeguards, and large pooled assets that enhance stability
Fees
PMS Industry
PMS charges higher fees (0.6% to 2.5% of assets)
Mutual Fund Industry
Mutual funds charge lower fees (0.2% to 1.7%)
- Number of registered PMSs in India
- 472 (as of March 2025)
- Estimated total benchmarking fees paid by PMSs
- ₹4.72 crore (assuming one scheme per PMS)
- Minimum investment for Debt PMS
- ₹50 lakh
- Average number of securities in Debt PMS portfolios
- 15
- Range of annual management fees for Debt PMS
- 0.6% to 2.5% of assets
