SEBI Hikes PMS Min Investment Requirement Limit; Cuts Rights Issue Process Time

On Wednesday, the Securities and Exchange Board of India (SEBI) increased the minimum investment requirement limit by clients of a portfolio management service (PMS) from Rs 25 lakh to Rs 50 lakh.

The base net worth requirement of portfolio managers has also been raised from Rs 2 crore to Rs 5 crore.

The regulator said that the new requirements have to be met by existing portfolio managers within 36 months.

The SEBI board also reduced the timeline for completion of a rights issue from T+55 days to T+31 days.

It was also decided that portfolio managers will not be permitted to invest more than 25 percent of their assets under management (AUM) in unlisted securities.

Dematerialised rights entitlements (REs) and trading of REs on stock exchanges were also introduced by SEBI. The rules require that top 500 listed entities based on market capitalisation shall include Business Responsibility Reporting as part of annual reports.

The regulator said that listed entities must disclose defaults in servicing bank loans beyond 30 days.