The SEBI has issued informal guidance permitting clients of Discretionary Portfolio Management Services (D-PMS) to pledge their securities while retaining them in assets under management until pledge invocation.
SEBI Permits Pledging by D-PMS Clients
The Securities and Exchange Board of India (SEBI) has provided informal guidance allowing clients of Discretionary Portfolio Management Services (D-PMS) to pledge their securities at their own discretion. This guidance specifies that pledged securities can remain part of the assets under management (AUM) until the invocation of the pledge occurs.
This guidance opens opportunities for clients seeking liquidity through the pledging of their investment securities, aiding financial flexibility while retaining asset value. By offering this facility, SEBI aims to enhance the operational dynamics within the portfolio management landscape.
Advisors and legal professionals should inform clients of these developments, enabling them to make well-informed decisions regarding their pledged securities' management and liquidity aspects.
Citations
- SEBI Guidance (2026) SEBI Notifications
