SEBI Board to Consider PMS Overhaul and REIT Reforms
By Market Desk
SEBI board reviews major proposals including a PMS overhaul, AIF reforms, and new measures for REITs and InvITs to boost foreign capital inflow.
The Policy Agenda
The Securities and Exchange Board of India board is scheduled to meet to discuss a wide-ranging agenda featuring over 10 key proposals. A primary focus is the comprehensive overhaul of Portfolio Management Services regulations.
Portfolio Management Services Overhaul
The overhaul aims to lower entry barriers, ease compliance, and expand investment options for market participants. Proposed changes introduce specific modifications for portfolio managers.
Key proposals for the portfolio management sector include:
- Allowing managers to invest in foreign securities.
- Introducing a mutual fund-only PMS category.
- Potential reductions in minimum investment and net-worth requirements.
Alternative Investment and Trust Reforms
The board will also address reforms for Alternative Investment Funds and strategies to enhance funding capabilities. Real Estate Investment Trusts and Infrastructure Investment Trusts are central to these capital-raising discussions.
Specific trust-related measures up for review include:
- Permitting trusts to issue depository receipts to raise foreign capital.
- Allowing trusts to invest in under-construction third-party projects.
Settlement and Advertising Updates
Additionally, the meeting will cover updates to the regulatory framework governing penalties and promotional codes. These adjustments seek to unify requirements across different financial entities.
Final framework updates feature:
- A new base calculation method for penalties within the settlement framework.
- The introduction of a unified common advertising code for all regulated entities.