What happened
The Securities and Exchange Board of India (SEBI) has proposed changes to the portfolio manager framework to expand investment avenues for portfolio managers. The proposal is aimed at broadening the investment universe available to clients while keeping the portfolio management business under market-regulatory oversight.
What the proposal covers
The proposal would allow portfolio managers to invest in to-be-listed securities. It would also permit investment in overseas listed equity and debt, which would extend the range of products that can be used in portfolio construction.
SEBI has also indicated that discretionary portfolio management services could invest up to 10% of a client’s assets under management in investment-grade unlisted debt.
Background and earlier position
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