Archive · 25 Sep 2026
SEBI Expands FPI Commodity Access, Overhauls PMS and Settlement Rules
SEBI, India’s market regulator, approved several new rules for investing and trading.
Foreign investors can trade more non-agricultural commodity contracts.
They must close positions in physically delivered contracts three days before delivery begins.
Portfolio managers can create services that invest only in mutual funds.
They can also invest in some foreign securities, IPOs and unlisted debt under the new rules.
SEBI changed how settlement cases are calculated and processed.
Smaller cases may move faster, while wrongful gains will still be recovered separately.
Some financial firms can now identify investors who are experienced enough to take higher risks.
REITs and InvITs will also be able to use depository receipts to raise money from foreign investors.
SEBI approved wider foreign portfolio investor access to non-agricultural commodity derivatives, including physically settled contracts subject to an exit deadline.
Portfolio managers may offer mutual-fund-only services and invest in direct mutual-fund plans, foreign securities, IPOs and certain unlisted debt.
The revised settlement framework excludes wrongful gains from base-amount calculations and fast-tracks cases involving settlement amounts up to ₹10 lakh.
Managers of alternative investment funds, specialized investment funds and PMS may accredit investors, including eligible foreign portfolio investors.
SEBI approved a common advertising code and allowed REITs and InvITs to raise foreign capital through depository receipts.
- Who
- The Securities and Exchange Board of India, foreign portfolio investors, portfolio managers, asset managers and eligible investors.
- What
- SEBI approved reforms covering commodity derivatives, portfolio management, settlements, investor accreditation, advertising, REITs, InvITs and vault managers.
- When
- At a SEBI board meeting described as Thursday in one report and as 24 September in another.
- Where
- India’s securities, commodity and investment markets, including permitted overseas markets.
- Why
- The measures aim to widen market participation, expand investment choices, simplify regulation and facilitate foreign-capital inflows.
- Commodity exit deadline
- FPIs must square off physically settled non-agricultural commodity positions three days before expiry, before the tender or staggered delivery period.
- PMS minimums
- The existing PMS minimum investment is ₹50 lakh; the new PRIM investment approach has a minimum ticket size of ₹25 lakh.
- Foreign investment options
- PMS may invest in listed foreign equities, listed debt, overseas mutual funds and overseas REITs; the second report also cites investments under the RBI’s Liberalised Remittance Scheme.
- Unlisted debt limit
- Discretionary PMS may invest up to 10% of client assets under management in investment-grade unlisted non-convertible debt, subject to client consent.
- Settlement fast track
- Cases involving settlement amounts of up to ₹10 lakh will not be referred to the High Powered Advisory Committee.
- Accreditation thresholds
- Stock-market exposure thresholds are ₹5 crore for individuals and certain trusts or proprietorships, and ₹20 crore for body corporates and other trusts.
- Advertising changes
- The Common Advertisement Code permits celebrity promotions with prior approval and replaces routine pre-approval with post-issuance reporting within three working days.
- REIT and InvIT funding
- Real estate investment trusts and infrastructure investment trusts may raise funds from foreign investors through depository receipts.
