Summary: SEBI’s board approved 13 capital-market measures spanning portfolio management, enforcement settlements, advertising, commodity derivatives, bullion vaulting, REITs, InvITs and corporate debt. The biggest changes include new Portfolio Managers Regulations and a revised settlement framework. Most measures are board approvals and will require formal notification before taking legal effect, making implementation dates and final regulatory text the next critical developments.
The Securities and Exchange Board of India has approved a broad package of market reforms covering portfolio managers, regulated advertising, foreign participation in commodity derivatives, investment trusts and enforcement settlements. The decisions were taken at the regulator’s 215th board meeting in Mumbai on September 24, 2026.
What Happened?
SEBI approved new Portfolio Managers Regulations, 2026 to replace the 2020 framework. The proposed rules widen the investment options available to portfolio managers, introduce a mutual-fund-focused route called PRIM and recognise an Independent Fund Manager model operating under the responsibility of a registered portfolio manager.
The board also approved new Settlement Regulations, 2026, replacing the 2018 framework. The revised structure uses a formula-based settlement amount and reorganises monetary, disgorgement and remedial terms. Another decision introduces a common advertisement code across several categories of regulated market entities.
Other approvals include wider participation by foreign portfolio investors in specified non-agricultural commodity derivatives, higher net-worth requirements for vault managers, depository receipts based on REIT and InvIT units, easier voting thresholds for selected REIT and InvIT decisions, and relief from mandatory listing of an issuer’s older unlisted non-convertible debentures when it lists debt for the first time.
Why It Matters
The package touches asset managers, brokers, research analysts, foreign investors, bullion-market infrastructure, debt issuers and investment trusts. For portfolio managers, the wider investment toolkit could support more differentiated products. For compliance teams, a common advertisement code may simplify fragmented rules but will require updated internal approval and monitoring systems.
The REIT and InvIT changes are intended to improve access to overseas capital and make certain unitholder decisions easier to complete. The debt-listing change could also lower the operational burden for first-time bond issuers.
Market Impact
There was no single demonstrated market move attributable to the board package. The decisions affect several segments rather than one listed company. Their financial impact will depend on the final notified regulations, implementation circulars and how quickly regulated entities adopt the new routes. Investors should therefore distinguish board approval from rules already in force.
Industry Context
The Portfolio Managers Regulations rewrite follows consultations aimed at developing the PMS industry and reducing redundant provisions. PRIM would allow eligible portfolio managers to invest client money in direct plans of mutual funds, ETFs, index funds and specialised investment funds, subject to conditions including a ₹25 lakh minimum ticket and a management-fee cap.
SEBI also approved enabling depository receipts on REIT and InvIT units, initially envisaged through India’s international financial services centre. For specified unitholder decisions, the approval threshold would move from 75% of all outstanding units to 75% of votes actually cast.
Most measures still await formal notification or operational circulars. The precise commencement dates, transitional requirements and detailed safeguards will be decisive for businesses and investors.
What To Watch Next
Market participants should monitor Gazette notifications, SEBI circulars and implementation deadlines. Portfolio managers will need clarity on PRIM, foreign securities, derivatives and independent fund managers. REIT and InvIT sponsors will be watching the depository-receipt framework, while brokers and asset managers will need the final common advertisement code before changing compliance processes.
Frequently Asked Questions
Are the new SEBI rules already in force?
Not in most cases. The board has approved the measures, but the underlying regulations generally become binding only after formal notification and, where required, operational circulars. Firms should begin readiness work while waiting for the final legal text, commencement dates and transitional provisions.
What is PRIM under the new portfolio-manager framework?
PRIM is a proposed route allowing portfolio managers to invest client funds in direct plans of Indian mutual funds, including ETFs, index funds and specialised investment funds. The approved framework includes a ₹25 lakh minimum ticket and conditions on registration, fees, activity segregation and affiliated-fund exposure.
How could the changes affect REITs and InvITs?
SEBI approved an enabling framework for depository receipts on REIT and InvIT units to support foreign investment. It also proposed counting 75% of votes actually cast for specified approvals instead of 75% of all outstanding units, potentially reducing decision-making bottlenecks caused by non-voting unitholders.
Sources
Featured photo: Uday Sankar Yerramilli/Unsplash. Image used for editorial representation.
