The SEBI Board has approved comprehensive reforms enhancing investor protection and market efficiency across PMS, REITs, InvITs, and AIFs. Key measures include simplified nomination norms, updated settlement mechanisms, and expanded reporting requirements.
SEBI Board Approves Major Reforms for PMS, REITs, InvITs
The Securities and Exchange Board of India (SEBI) Board has approved a suite of regulatory reforms aimed at strengthening investor protection, improving market transparency, and streamlining compliance across multiple asset classes. The reforms cover portfolio management services (PMS), real estate investment trusts (REITs), infrastructure investment trusts (InvITs), alternative investment funds (AIFs), foreign portfolio investors (FPIs), and depository participants.
Key initiatives include the simplification of the nomination framework for demat accounts and mutual fund folios, introducing default nominations with an opt-out mechanism and reduced documentation. SEBI also extended the Samuhik Prativedan Manch (SPM) to clearing members, consolidating 14 compliance reports from 30 September 2026 to eliminate duplicate reporting. Recognition renewals for NSE Clearing Limited (three years from 3 October 2026) and Metropolitan Stock Exchange (one year from 16 September 2026) were also confirmed.
Practitioners should note the enhanced compliance expectations, particularly in PMS and AIF governance, REIT/InvIT structuring, and PIT disclosure obligations. These reforms signal SEBI’s intent to institutionalize standardization and transparency, especially in complex investment vehicles. Legal teams must update client advisory frameworks, especially regarding investor consent in trust-to-LLP conversions and open offer triggers under SAST regulations.
