SEBI has proposed a major overhaul of the Portfolio Managers Regulations, 2020, with the aim of expanding investment options, simplifying compliance, and modernizing the portfolio management services, or PMS, industry.

According to the proposal, the changes are intended to broaden the range of investment opportunities available under PMS while also easing regulatory requirements for participants in the segment. Public comments on the draft proposals are invited until August 13.

The proposal is part of SEBI’s broader effort to update the framework governing portfolio managers and align it with current market practices. PMS is a regulated investment service in which portfolio managers manage securities on behalf of clients according to agreed strategies and mandates.

For the industry, the draft matters because PMS sits at the intersection of client customization and regulatory oversight, so even incremental rule changes can affect how managers structure offerings and how much operational burden they face. The consultation period gives market participants a chance to review whether the proposed framework reflects current practice before SEBI decides whether to move ahead.

SEBI has not yet implemented the changes, and the draft remains open for public feedback through the consultation period.