Mumbai, February 23 – SEBI Chairman Tuhin Kanta Pandey announced on Monday that the markets regulator is set to undertake a comprehensive review of Portfolio Management Services (PMS), Listing Obligations and Disclosure Requirements (LODR), and settlement frameworks. A consultation paper outlining these changes could be released as early as June.
Speaking at the Portfolio Managers Conclave, Pandey emphasized that investors remain at the heart of the PMS ecosystem. While transparency in this segment has improved significantly, evolving market dynamics and the emergence of innovative investment products necessitate a fresh look at existing regulations.
The review will extend beyond PMS to include LODR norms and settlement processes, aiming to align them with current market realities. Pandey highlighted SEBI’s exploration of Artificial Intelligence (AI) for real-time detection of market irregularities, enabling swift corrective actions.
In a bid to deepen the corporate bond market, SEBI is collaborating with the Reserve Bank of India (RBI) to develop corporate bond indices and related products tradable on exchanges. This initiative promises to expand investment avenues for retail and institutional investors alike.
Pandey also hinted at potential revisions to trading funding norms, with SEBI planning to examine RBI’s lending guidelines and share feedback. Such moves could lead to stricter regulations on margin trading and loan-based trading activities.
As India solidifies its position as the world’s fastest-growing major economy, soon to become the third-largest globally, the surge in investor participation underscores the need for robust regulatory frameworks. SEBI’s proactive steps signal a commitment to fostering a safer, more efficient capital market.