Key Details
The 24 September 2026 Board meeting approved changes across several market regulations. The two largest rewrites concern portfolio management and settlement of enforcement proceedings.
Area | Board-Approved Change |
|---|---|
Portfolio management | New 2026 regulations will replace the 2020 rules. Portfolio managers gain access to additional investments, including IPOs, specified unlisted debt and foreign securities, subject to conditions. |
Mutual-fund route | A new Portfolio Managers Route for Investing in Mutual Fund units (PRIM) will allow managed investments in direct plans, with a ₹25 lakh minimum per client and a portfolio-manager fee capped at 1% of client assets. |
Regulatory settlements | New 2026 regulations will replace the 2018 rules. They provide a faster route for cases with settlement amounts of up to ₹10 lakh, while treating wrongful gains separately from the settlement amount. |
Other market changes | The Board also approved wider foreign-investor access to specified commodity derivatives, depositary receipts based on REIT and InvIT units, a common advertisement code, and changes to accredited-investor and bullion-vault rules. |
These are Board approvals, not a claim that every provision is already in force. The new settlement regulations are to commence after notification, on the day following a 30-day period.
Portfolio Managers Gain New Investment Options
The proposed SEBI (Portfolio Managers) Regulations, 2026 widen the assets portfolio managers can use for clients. Discretionary managers could invest up to 10% of a client’s assets in investment-grade, non-convertible unlisted debt with consent. The rules also permit specified foreign investments and allow exchange-traded derivatives exposure of up to 1.25 times client assets, subject to safeguards.
PRIM is a distinct addition: it lets portfolio managers offer a managed service built around direct mutual-fund plans, including exchange-traded funds and index funds. Its ₹25 lakh entry threshold and 1% portfolio-manager fee capmake the product’s costs and the choice of underlying funds important for clients to compare. Investments in funds run by an affiliated asset manager are capped at 25%.
The regulations also permit qualified Independent Fund Managers to work under a registered portfolio manager. The registered firm remains responsible for their conduct and must give clients an exit option if their manager leaves.
Settlement Becomes Faster, With Wrongful Gains Kept Separate
The proposed SEBI (Settlement of Administrative and Civil Proceedings) Regulations, 2026 revise how certain regulatory cases can be resolved without completing contested proceedings. Applicants would generally have 60 days to apply after a pre-show-cause settlement notice or 90 days after a show-cause notice.
The framework introduces a faster process for smaller cases and certain disclosure violations. Settlement amounts will reflect factors including the minimum statutory penalty and the stage and seriousness of a case. Wrongful gains must be returned separately; paying a settlement amount does not allow a party to retain them. Financial-misrepresentation and diversion cases may also require corrective measures, such as disclosures or recovery of diverted funds.
Foreign Access and Market Conduct Rules Also Change
Foreign portfolio investors will be able to trade additional non-agricultural commodity derivatives, but must close or transfer positions before a physical-delivery obligation arises. The Board also approved depositary receipts backed by REIT and InvIT units, initially through an Indian international financial services centre; detailed rules are still to follow.
A common advertisement code will replace separate advertising frameworks for several market intermediaries. It permits celebrity endorsements for entity or brand promotion with safeguards, while routine advertisements may be issued without prior approval and reported within three working days.
Policy Relevance
Product choice and investor protection now meet in the same reform. PRIM could widen access to professionally managed mutual-fund portfolios, but investors will need to see the total cost of the service alongside the funds it holds, and understand whether affiliated funds influence selection.
For enforcement, the practical test is whether quicker settlements preserve accountability. Publishing clear settlement terms — and ensuring wrongful gains are returned and corrective conditions carried out — will matter more than the number of cases closed.
The foreign-investor and depositary-receipt decisions seek to broaden participation in Indian markets. Their effect will depend on the forthcoming operating rules, particularly those governing physical delivery in commodities and the issuance of receipts against investment-trust units.
Relevant Question for Policy Stakeholders: As SEBI widens investment choice and speeds up settlements, what disclosures and published outcomes will let investors judge costs, conflicts of interest and enforcement effectiveness?
Follow the Full SEBI Board Release Here: Key Decisions Taken in the SEBI Board Meeting, 24 September 2026