SEBI doubles minimum investment in PMS funds to Rs 50 lakh

Market regulator Securities and Exchange Board of India (SEBI) on November 20 doubled the minimum investment in PMS funds to Rs 50 lakh.

However, existing investments will be allowed to continue until the end of the PMS agreement, the regulator said in a release detailing decisions taken at its board meet on November 20.

Moneycontrol was the first to report on the development.

SEBI also enhanced the net worth requirement of portfolio managers to Rs 5 crore from Rs 2 crore.

In the release, SEBI said, non-discretionary Advisory Portfolio Managers will not be allowed to invest more than 25 percent of their asset under management (AUM) in unlisted securities.

It also restricted off-market transfers from and to clients' accounts with certain exceptions.

The regulator has also made it mandatory for all portfolio managers except those providing only advisory services to appoint a custodian.

The released also noted that listed entities must disclose defaults in the repayment of the principal or interest of loans from banks or other financial institutions within 24 hours after the 30th day from the pre-agreed payment date.

The regulator also mandated that the top 1,000 listed entities based on market capitalisation as on March 31 of every financial year, should include Business Responsibility Reporting (BRR) as a part of their annual reports.