2 hrs ago

SEBI approves new PMS rules, expands FPI commodity access

SEBI is India’s market regulator.

It approved new rules for companies that manage investments for clients.

These companies can now invest in IPOs and some new debt offerings.

They can also use certain foreign securities and direct mutual fund plans.

With a client’s permission, they may put up to 10% of the client’s money into certain unlisted debt securities.

Their use of exchange-traded derivatives can reach 1.25 times the client’s assets.

Foreign portfolio investors will get more access to some commodity derivatives.

However, they must close certain positions before delivery of the commodities could become necessary.

Key facts

New framework: The 2026 portfolio manager regulations will replace the existing 2020 regulations.
New investment avenues: Portfolio managers may invest in IPOs, primary debt issuances and certain foreign securities.
Unlisted debt limit: Discretionary portfolio managers may invest up to 10% of client AUM in eligible unlisted debt securities, subject to client consent.
Derivatives exposure: Exchange-traded derivatives exposure may reach 1.25 times a client's AUM.
FPI access: FPIs may participate in non-agricultural index derivatives regardless of whether the contracts are cash-settled.
Position safeguard: For non-cash-settled non-agricultural commodity derivatives, FPIs must exit before the Tender Period, which begins three days before expiry.
Position restriction: FPIs cannot increase positions from the T-3 day.

thehansindia.com · 2 hrs ago

theprint.in · 30 mins ago