{"id":907616,"date":"2026-09-27T17:46:11","date_gmt":"2026-09-27T17:46:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/907616\/"},"modified":"2026-09-27T17:46:11","modified_gmt":"2026-09-27T17:46:11","slug":"sebi-pms-overhaul-could-turn-advisers-into-portfolio-managers","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/907616\/","title":{"rendered":"SEBI PMS overhaul could turn advisers into portfolio managers"},"content":{"rendered":"

\"The<\/p>\n

\n\t\t\t\t\t\t\t\t\t\tThe shift could also change the economics of managing mutual fund portfolios\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/p>\n

The Securities and Exchange Board of India\u2019s (SEBI) overhaul of portfolio management services (PMS) could allow investment advisers and wealth managers to move beyond recommending mutual funds to managing customised portfolios, potentially bringing a new set of players into the PMS industry.<\/p>\n

Under the new portfolio managers\u2019 route for investing in mutual fund units (PRIM), portfolio managers can manage portfolios comprising direct plans of mutual funds, exchange-traded funds (ETFs), index funds and Specialised Investment Funds (SIFs).<\/p>\n

The minimum investment is \u20b925 lakh, compared with \u20b950 lakh for conventional PMS. Industry participants said the route could be particularly relevant for advisers looking to take responsibility for portfolio construction, allocation and rebalancing.<\/p>\n

\u2018Game-changing\u2019<\/p>\n

\u201cThis is a game-changing regulation, it expands the role of a portfolio advisor and wealth manager, allowing them to now use the PMS license to offer a full-spectrum portfolio as an Asset Allocator,\u201d said Dharmendra Jain, Co-Founder of Ionic Wealth.<\/p>\n

\u201cThis expands the portfolio opportunity across IPOs, global investments, unlisted investment-grade debt, and the use of derivatives to manage portfolio risk,\u201d he said.<\/p>\n

The shift could also change the economics of managing mutual fund portfolios. Under PRIM, fixed management fees are capped at 1 per cent of client assets under management (AUM), while performance-based fees are permitted. Exposure to schemes of affiliated, group or associate asset management companies is capped at 25 per cent. PRIM-only portfolio managers will require a minimum net worth of \u20b92 crore.<\/p>\n

\u201cThrough PRIM, from \u20b925 lakh, a PMS can run a portfolio made entirely of direct plans: mutual funds, ETFs, index funds and SIFs,\u201d said Riddhiman Jain, Managing Director and Head of Investment Strategy and Solutions at Waterfield Advisors.<\/p>\n

Lower costs<\/p>\n

\u201cFor retail investors, that means: Lower costs, with direct plans instead of regular plans; One transparent fee, capped at 1 per cent; A 25 per cent cap on affiliated AMCs, which keeps fund selection honest; Someone accountable for allocation and rebalancing, year after year,\u201d Jain said.<\/p>\n

Existing PMS players can also offer PRIM as a separate investment approach, while new applicants can seek registration specifically for the route.<\/p>\n

PMS managers can now also participate in IPOs and primary debt issuances, specified overseas investments, including listed equity and debt, REITs, mutual funds, ETFs, index funds and foreign government securities, subject to applicable rules.<\/p>\n

\u201cThe ability to participate in IPOs and primary debt issuances, invest up to 10 per cent of client AUM in investment-grade unlisted debt with client consent, and access exchange-traded derivatives up to 1.25 times client AUM gives managers greater scope for diversification and portfolio construction,\u201d said Vishal Trehan, Head India Sales and COO – Broking and Clearing, Aikyam Capital Group.<\/p>\n

Published on September 27, 2026 <\/p>\n","protected":false},"excerpt":{"rendered":"The shift could also change the economics of managing mutual fund portfolios The Securities and Exchange Board of…\n","protected":false},"author":2,"featured_media":907617,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[64,63,99,186,184,185,475628,475629],"class_list":["post-907616","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-au","tag-australia","tag-business","tag-finance","tag-personal-finance","tag-personalfinance","tag-sebi-pms","tag-sebi-prim"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/907616","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=907616"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/907616\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/907617"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=907616"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=907616"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=907616"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}