SEBI Portfolio Managers Regulations, 2026: what changed
The new PMS rulebook replaces the 2020 regulations from 1 April 2027. The main changes for portfolio managers and investors.
Last updated 5 November 2026
SEBI notified the SEBI (Portfolio Managers) Regulations, 2026 in October 2026. They replace the 2020 regulations and take effect on 1 April 2027.
For investors
- The ₹50 lakh minimum for a regular PMS stays. Accredited investors are exempt from it.
- The new PRIM route allows a managed mutual fund portfolio from ₹25 lakh, in direct plans only.
- Upfront fees are prohibited.
- Complaints must be resolved within 21 calendar days.
For portfolio managers
| Area | Change |
|---|---|
| Investment universe | IPOs and primary issuances of debt are expressly allowed; specified unlisted debt and foreign securities within limits; exchange-traded derivatives within SEBI limits |
| Mutual fund holdings | Must be in direct plans, with no distribution-related fees |
| PRIM | New route for mutual-fund-only portfolios; PRIM-only registration with ₹2 crore net worth |
| Independent Fund Managers | Can manage portfolios in association with a registered portfolio manager, which stays fully responsible |
| Net worth | Still ₹5 crore; now includes securities premium and deducts loans and advances; at least 10% in unencumbered liquid assets |
| Principal Officer | Any graduate can qualify, subject to experience and certification |
| Compliance Officer | No dual roles |
| Commencement | Three years to start portfolio management activities after registration |
What to do now
Existing portfolio managers should review agreements, disclosure documents, fee structures and internal controls against the new rules before 1 April 2027. Transition provisions and operating details will be set out by SEBI separately; follow the regulation tracker.