Revised PMS regulations by mid-2026: Sebi chief

MUMBAI: Markets regulator Sebi is in the process of reviewing and revamping the regulations for the portfolio management services industry, and a new set of regulations is expected to be in place by mid-2026, Tuhin Kanta Pandey, chairman, Sebi said Monday.

The Sebi chief also said that internally its top officials are discussing how it could put in place a formal system of 'when listed' stocks to trade, that is allowing companies to get their stocks traded during the days leading up to the opening for the IPO for bidding. This is aimed at restricting trading of stocks in the unofficial, grey market. The idea, on the lines of trading in 'when issued' section of the sovereign bonds market, was first mooted more than a year ago by the previous Sebi chief Madhabi Puri Buch.

The Sebi chief Pandey was speaking at an event at the National Institute of Securities Markets, organised by the Association of Portfolio Managers in India (Apmi). He noted that certain provisions of the PMS regulation that was introduced six years ago, need rationalisation.

"We propose to carry out a comprehensive review of the Sebi (Portfolio Managers) Regulations, 2020, so that the framework remains effective, adaptable, and aligned with evolving market dynamics," Pandey said in his inaugural speech. He said that the Sebi's decision to review these PMS regulations was driven by the need to rationalise certain aspects identified since 2020.

The Sebi chief said that the scope of the review is yet to be finalised, as proposals were still maturing. But said that a single, comprehensive consultation paper will be issued in a few months. On the possibility of putting in place a mechanism to trade in stocks of IPO-bound companies, he said that it would not be involved in the whole unlisted space, but only in that space where Sebi has jurisdiction.