SEBI board meet 2026: PMS revamp, FPI access and settlement reforms on agenda
Synopsis
SEBI is set to consider around a dozen sweeping capital market reforms at its board meeting this week — from allowing PMS managers to invest in overseas securities and unlisted debt, to opening commodity derivatives to FPIs and creating a fast-track settlement route for smaller cases. If passed, the changes would mark one of the broadest regulatory updates to India's market infrastructure in recent memory.
Key Takeaways
SEBI is expected to consider around a dozen proposals at its board meeting this week, 23 September 2026 .
PMS managers may be allowed to invest in foreign securities and up to 10% of client AUM in investment-grade unlisted debt.
FPIs could gain access to physically deliverable non-agricultural commodity derivatives, with mandatory square-off 3 days before delivery.
A fast-track settlement route for cases up to ₹10 lakh and an extended application window of 90 days (up from 60) are proposed.
REITs and InvITs may be permitted to raise foreign capital via depository receipts .
A unified Common Advertising Code covering all SEBI-regulated intermediaries is also under consideration.
The Securities and Exchange Board of India (SEBI) is expected to take up around a dozen proposals at its board meeting this week, according to reports, with a comprehensive overhaul of Portfolio Management Services (PMS) rules, a review of settlement norms, and measures to broaden the accredited investor framework among the top items on the table.
PMS Framework Overhaul
The most wide-ranging proposal is reportedly a structural revamp of the PMS regulatory framework, designed to widen investment choices and ease compliance burdens for managers. Under the proposed changes, PMS managers could be permitted to invest in foreign securities — including listed overseas equities and debt — as well as overseas mutual funds investing in listed equities, debt and REITs, subject to FEMA and Liberalised Remittance Scheme (LRS) limits, and with explicit client consent.
Additionally, investments in to-be-listed securities may be allowed, and discretionary PMS managers could be enabled to deploy up to 10 percent of client assets under management in investment-grade unlisted debt — a significant shift from existing constraints. Other operational easing measures reportedly under consideration include demat portability, digital disclosure documents, simpler reporting norms, relaxed dealing-room and qualification requirements, and a rationalisation of power-of-attorney norms.
Broader FPI Access to Commodity Derivatives
Foreign Portfolio Investors (FPIs) could gain access to physically deliverable non-agricultural commodity derivatives under one of the proposals. If approved, FPIs would be required to square off or roll over positions three days before the delivery period, a safeguard aimed at limiting physical delivery risk. This would mark a meaningful expansion of FPI participation in India's commodities market.
Settlement Framework and Fast-Track Route
The proposed overhaul of the settlement framework would link the base settlement amount directly to the minimum penalty prescribed under securities laws, tightening the connection between regulatory action and financial consequence. A fast-track settlement route for cases involving amounts up to ₹10 lakh is also on the table, along with an extension of the application deadline from 60 to 90 days — a measure that could meaningfully reduce compliance timelines for smaller market participants.
Common Advertising Code and REITs/InvITs Capital Access
A unified Common Advertising Code for all SEBI-regulated intermediaries — including stock brokers, mutual funds, portfolio managers, investment advisers, and research analysts — is reportedly under review. The proposed code aims to standardise disclosure and promotional norms across a fragmented intermediary landscape. Separately, REITs and InvITs may be permitted to raise foreign capital through depository receipts, potentially deepening the investor base for India's real estate and infrastructure investment trust market.
What to Watch
The SEBI board meeting outcome will be closely watched by portfolio managers, FPIs, and market intermediaries alike. If adopted, the combined reforms would represent one of the more substantive regulatory updates to India's capital markets framework in recent years, touching everything from offshore investment access to settlement timelines and advertising standards.
Point of View
And the 10% unlisted debt cap is a calculated but real risk-opener. The FPI commodity access proposal deserves scrutiny — bringing foreign money into physical delivery markets carries liquidity and price discovery benefits, but the three-day roll-off rule is a thin safeguard. The fast-track settlement corridor, if well-designed, could meaningfully reduce regulatory friction for smaller participants — but the devil will be in how 'fast-track' is administered in practice.
NationPress
23 Sept 2026
Frequently Asked Questions
What is SEBI expected to discuss at its board meeting this week?
SEBI is expected to consider approximately a dozen proposals at its board meeting this week, including a major overhaul of PMS rules, broader FPI access to commodity derivatives, a revised settlement framework, a common advertising code, and permission for REITs and InvITs to raise foreign capital through depository receipts.
What changes are proposed for Portfolio Management Services (PMS)?
The proposed PMS revamp would allow managers to invest in foreign listed equities, debt, and overseas mutual funds subject to FEMA and LRS limits. Discretionary PMS managers may also be permitted to invest up to 10% of client AUM in investment-grade unlisted debt, alongside operational easing measures like demat portability and simplified reporting.
How would FPIs benefit from the proposed commodity derivatives changes?
Foreign Portfolio Investors could be permitted to participate in physically deliverable non-agricultural commodity derivatives for the first time. They would be required to square off or roll over their positions three days before the delivery period begins, limiting physical delivery risk.
What is the proposed fast-track settlement route under SEBI's review?
SEBI is considering a fast-track settlement route for cases involving amounts up to ₹10 lakh, which would streamline resolution for smaller market participants. The application deadline is also proposed to be extended from 60 to 90 days.
What is the Common Advertising Code being considered by SEBI?
The proposed Common Advertising Code would establish unified advertising and disclosure norms across all SEBI-regulated intermediaries, including stock brokers, mutual funds, portfolio managers, investment advisers, and research analysts, replacing the current fragmented standards.
