Business · India Bureau
Sebi greenlight on PMS rules reform, FPI commodity access
India's market regulator has approved significant reforms to portfolio management services regulations and settlement procedures. The moves also permit foreign portfolio investors greater access to non-agricultural commodity derivatives markets.
LSN India ·
The Securities and Exchange Board of India (Sebi) has cleared a package of regulatory reforms aimed at streamlining portfolio management services (PMS) operations and modernising settlement frameworks for market participants.
The approved changes to PMS regulations are expected to enhance operational efficiency and investor protection within the segment. The reforms address procedural requirements and compliance standards that govern how portfolio managers conduct business with domestic and international clients.
In a parallel move, Sebi has expanded market access by permitting foreign portfolio investors (FPIs) to participate in non-agricultural commodity derivatives trading. This step aims to deepen liquidity in India's commodity markets and attract greater international participation in a previously restricted segment.
The regulator has also approved a unified advertisement code that will standardise marketing practices across the securities industry. The common code seeks to ensure consistent messaging and prevent misleading communications to investors across all market participants.
These regulatory measures align with Sebi's broader agenda of modernising India's financial markets infrastructure, enhancing competitiveness, and maintaining robust investor safeguards in line with international standards.