SEBI Board Meeting, 24 September 2026: What Changes

The Securities and Exchange Board of India (SEBI) board met on 24 September 2026 and approved a long list of changes. The biggest is a complete rewrite of the rules for portfolio management services (PMS), the ₹50-lakh-plus investment service used by wealthier investors. It also approved a new settlement process, a common advertisement code for market intermediaries and changes for foreign investors, gold vaults and REITs. Here is what each decision means, and which ones matter if you are a regular investor.

The short answer

• New PMS rules: the Portfolio Managers Regulations, 2026 replace the 2020 rules. PMS can now invest in IPOs, a little unlisted debt and foreign securities, and offer direct mutual fund plans through a new route with a 1% fee cap.
• Common advertisement code: one set of ad rules for brokers, advisers, research analysts, mutual funds and PMS. Celebrity endorsements are allowed for brand-level ads, with safeguards.
• Faster settlements: a case can be settled before a show-cause notice is issued, and small cases up to ₹10 lakh get a fast-track route.
• Accredited investors: new ways to qualify, including ₹5 crore of securities-market holdings for individuals.
• Gold vaults: SEBI’s vault rules now extend to gold and silver ETFs and bullion derivatives.
• Most of these need a formal notification or circular before they take effect.

1. A new rulebook for PMS

The new Portfolio Managers Regulations, 2026 cut the rules from 70 pages to 33 and add new investment options.

What changes	Detail
IPOs and new debt issues	PMS can now invest in them
Unlisted debt	Up to 10% of a client’s money, only investment-grade, non-convertible securities, with client consent (discretionary PMS)
Exchange-traded derivatives	Up to 1.25 times a client’s assets
Foreign securities	Equities, debt, REITs, ETFs, index funds and government bonds, within RBI and FEMA limits
Direct mutual fund plans	Through a new PRIM route
Agreements	A standard Investment Management Agreement for all clients
Smaller PMS firms	Relaxed dealing-room rules for those with under ₹100 crore of assets (about 48% of registered PMS)

The PRIM route lets a portfolio manager invest a client’s money in direct plans of mutual funds. It comes with:

PRIM rule	Limit
Minimum investment per client	₹25 lakh
Management fee	Capped at 1% of assets a year
Performance fee	Allowed
Mutual funds of an affiliated AMC	Up to 25%
Net worth for a new PRIM-only firm	₹2 crore

SEBI also approved keeping mutual fund distribution and PRIM activities and clients separate, for all clients except accredited investors.

2. One advertisement code for everyone

Until now, each type of intermediary had its own advertising rules. The new common advertisement code covers stock brokers, depository participants, investment advisers, research analysts, bond platforms, portfolio managers and mutual funds.

• Celebrity endorsements are allowed for brand-level promotions, with safeguards.
• Other ads can be issued without prior approval, but must be reported within 3 working days.

For you, this means you may see more brand ads with well-known faces from brokers and fund houses. A celebrity in an ad says nothing about whether a product suits you.

3. A faster way to settle cases

Change	Before	Now
When you can apply to settle	After a show-cause notice	Can be offered before a show-cause notice, with 60 days to apply
Time to apply after a show-cause notice	60 days	90 days
Small cases	Standard process	Fast track for settlements up to ₹10 lakh for specified violations
How the amount is worked out	Case by case	Formula-based, from the minimum penalty, with any wrongful gain recovered separately

This mainly affects companies and intermediaries facing SEBI action, but faster settlements also mean cases close sooner.

4. Other decisions

Area	Decision
Accredited investors	New route: securities-market holdings of ₹5 crore (individuals) or ₹20 crore (companies and trusts). NRIs and FPIs are deemed accredited.
AIFs	Fund managers’ loss-protection rules now apply to all types of AIF, not just trusts
Gold and silver vaults	Vault manager rules extended to bullion-backed ETFs and bullion derivatives; net worth needed rises from ₹50 crore to ₹75 crore
Foreign investors (FPIs)	Can trade non-agricultural commodity index derivatives and some non-cash-settled commodity derivatives
REITs and InvITs	Can list depository receipts at GIFT City (IFSC), open to foreign investors including NRIs
Research analysts	Call-recording rules relaxed for those dealing only with institutional clients
Debt listings	First-time NCD issuers need not list old unlisted NCDs issued after 1 January 2024

What it means for you

If you…	Takeaway
Invest through SIPs in mutual funds	Nothing changes for you directly. Keep investing; check your plan on the SIP calculator.
Use or are considering a PMS	Ask whether your manager will use the new options (IPOs, foreign stocks, PRIM), and compare the fee to simply holding direct funds yourself.
Hold gold or silver ETFs	The stricter vault rules aim to make sure the metal behind your units is stored and checked properly.
See celebrity ads for brokers or funds	Judge the product by its costs, risk and track record, not the face in the ad.
Have ₹5 crore+ in shares and funds	You may qualify as an accredited investor more easily, which opens products with lighter rules and less protection.

Before paying for any managed service, compare its fees and returns honestly. A 1–2% annual fee makes a large difference over 15–20 years, which you can see by running two return rates through the lumpsum calculator or checking past returns with the CAGR calculator.

Frequently asked questions

What did SEBI approve on 24 September 2026? New Portfolio Managers Regulations, 2026, a new settlement framework, a common advertisement code, new accreditation routes, wider rules for gold vaults, commodity access for FPIs, depository receipts for REITs and InvITs, and relaxations for research analysts and NCD listings.

What is PRIM in PMS? A new route under the PMS rules that lets portfolio managers invest clients’ money in direct plans of mutual funds. The minimum is ₹25 lakh per client, and the management fee is capped at 1% of assets a year.

Can celebrities now advertise brokers and mutual funds? Yes, for brand-level promotions, with safeguards under SEBI’s new common advertisement code.

Do these changes affect my mutual fund SIP? Not directly. The changes are mainly for PMS, intermediaries, foreign investors and accredited investors.

When do the new PMS rules take effect? After SEBI notifies the regulations and issues the related circulars. The board approval on 24 September is the first step.

Sources

• Outlook Money, “Sebi Board Meeting: PMS Overhaul, Easier Settlements, New Ad Code Among Key Changes”: outlookmoney.com
• TeamLease RegTech, “SEBI Key Decisions from Board Meeting”: teamleaseregtech.com
• Investment Guru India, “Key decisions taken in the SEBI Board Meeting dated 24th September, 2026”: investmentguruindia.com