📢 SEBI Updates Regulations on Portfolio Managers – 2025 Highlights

The Securities and Exchange Board of India (SEBI) has recently introduced significant amendments to the Portfolio Managers Regulations, aiming to enhance investor protection, promote transparency, and streamline compliance requirements for registered Portfolio Managers in India.

🔍 What Are Portfolio Managers?

Portfolio Managers are SEBI-registered entities that manage a client’s securities or funds under a mutually agreed investment strategy, typically through Discretionary, Non-Discretionary, or Advisory services.

📝 Key Regulatory Updates by SEBI (2025)

1️⃣ Increased Transparency in Fee Disclosure

💡 Portfolio Managers are now required to:

• Clearly disclose all fees and charges in a standardised format.
• Provide clients with an illustration of the effect of fees on returns.

2️⃣ Enhanced Compliance Framework

🛡️ SEBI has mandated:

• Quarterly compliance reports to be submitted to SEBI.
• Stronger internal control systems and audit mechanisms.
• Real-time alerts to clients for portfolio-related transactions.

3️⃣ Segregation of Advisory and Distribution Activities

⚖️ Portfolio Managers offering advisory services must ensure:

• Clear segregation between advisory and distribution functions.
• Avoidance of any conflict of interest in investment advice and commission-based products.

4️⃣ Increased Minimum Net Worth Requirement

💰 SEBI has proposed an increase in the minimum net worth requirement for Portfolio Managers to strengthen their financial standing and ensure only serious players operate in this space.

5️⃣ Investor Grievance Redressal System

📨 Strengthening investor confidence, SEBI requires:

• A more robust grievance redressal mechanism via the SEBI SCORES platform.
• Transparent timelines for complaint resolution.

📈 Expected Impact on the Industry

• ✔️ Improved investor trust through fee clarity and reduced mis-selling.
• ✔️ Stronger governance and accountability in portfolio management operations.
• ✔️ Encouragement of ethical practices and fair dealing.
• ✔️ Increased compliance responsibility for Portfolio Managers.

✅ Conclusion

SEBI’s latest regulatory updates are a part of its continued efforts to safeguard investor interest, promote market integrity, and ensure that Portfolio Managers act in a fiduciary capacity.

As the wealth management landscape evolves, these reforms aim to build a transparent, trustworthy, and investor-centric ecosystem in India.

📌 Stay compliant. Stay informed.
For assistance with Portfolio Manager registration or compliance services, reach out to TAXAJ at 📞 +91 88029 12345 or 🌐 www.taxaj.com.

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