SEBI Board has cleared wide-ranging reforms for Portfolio Managers, REITs, InvITs, FPIs, AIFs, and settlement mechanisms to boost market depth and investor protection.
SEBI Approves Comprehensive Market Reforms
The SEBI Board has approved a package of regulatory reforms targeting Portfolio Management Services (PMS), Real Estate Investment Trusts (REITs), Infrastructure Investment Trusts (InvITs), Foreign Portfolio Investors (FPIs), Alternative Investment Funds (AIFs), and settlement procedures. The measures aim to deepen capital markets and align regulations with evolving investor needs.
Key reforms include enhanced disclosure norms for PMS, relaxation of leverage limits for AIFs under specific conditions, improved governance for REITs and InvITs, and simplified onboarding for accredited investors. SEBI also approved a new summary settlement mechanism to expedite enforcement actions involving smaller penalties.
Additionally, the regulator has strengthened oversight of vault managers and custodians handling physical assets. These reforms reflect SEBI’s continued focus on balancing market innovation with investor safeguards. Market intermediaries must assess the impact on compliance architecture and client servicing models ahead of implementation timelines to be notified.
