SEBI Expands PMS Scope to Include Overseas & Unlisted Assets
By Market Desk
SEBI updates PMS regulations, allowing wealth managers to invest in overseas and unlisted securities for better diversification and risk reduction.
The Securities and Exchange Board of India has implemented regulatory amendments allowing Portfolio Management Services to invest in a broader range of securities. This policy shift expands the investment universe for fund managers operating in the wealth management sector.
New Asset Classes Unlocked for Portfolio Management Services
Regulators are now permitting PMS providers to access wider asset classes to enhance portfolio construction. The updated framework introduces key operational expansions for high-net-worth investors.
Here are the specific asset classes and investment avenues newly accessible to providers:
International securities are now open for inclusion in portfolios, bringing global diversification opportunities.
Unlisted instruments can be acquired by fund managers, offering sophisticated avenues for wealth creation beyond public exchanges.
The Core Objective Behind the Regulatory Update
This strategic move is designed to reduce concentration risk for market participants. Fund managers gain greater flexibility to construct robust portfolios that align with global investment standards.
These regulatory updates reflect a broader commitment by regulators to modernize market infrastructure. Fostering innovation within the financial ecosystem remains a primary goal of the updated framework, ultimately benefiting both investors and the wider economy.