Prime Minister's Office · GODL-IndiaSEBI approves new rules to widen investment avenues
The Securities and Exchange Board of India (SEBI) board approved new regulations widening investment avenues for portfolio managers, permitting them to invest client funds in foreign securities and, through a new PRIM route, in direct plans of mutual funds including ETFs, index funds and specialised investment funds. It also revamped its settlement framework and allowed foreign portfolio investors to trade a wider range of exchange-traded commodity derivatives.
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SEBI is a frequently tested statutory regulator; new investment routes and ticket-size norms are prelims-relevant.
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- SEBI introduced the PRIM route for portfolio managers to invest in mutual fund direct plans (ETFs, index funds, SIFs).
- Minimum ticket size set at Rs 25 lakh; fixed management fee capped at 1% of AUM.
- Portfolio managers allowed to invest in foreign securities.
- FPIs permitted to participate in a wider range of exchange-traded commodity derivatives.
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