SEBI to remodel PMS regulations for stronger governance

SEBI to remodel PMS regulations for stronger governance

The move signals a tighter oversight and higher administration standards for the industry

The Securities and Exchange Board of India’s (SEBI’s) Chairman, Tuhin Kanta Pandey, has stated that the regulator was planning a comprehensive review of the regulations governing portfolio managers.

While addressing the Portfolio Management Services (PMS) Conclave, the Chairman stressed the need to remodel the SEBI (Portfolio Managers) Regulations, 2020, to ensure the framework’s effectiveness and see that it was adaptable and aligned with evolving market dynamics.

While highlighting the need for stronger governance and conduct standards among portfolio managers, Pandey expressed, “We propose to carry out a comprehensive review of the PMS Regulations so that the framework remains robust and relevant. However, regulations alone cannot build a strong industry.”

The review is likely be taken up at SEBI’s June 2026 board meeting. It will be a part of the broader revamp that includes rationalization of settlement regulations, takeover norms, and listing obligations and disclosure needs.

SEBI will seek feedback from industry participants on rationalization, after which a consultation paper outlining the proposed changes will be issued as part of the process.