SEBI notified the Portfolio Managers Regulations, 2026 on 7 October 2026, according to a summary on Corplawupdates. The Gazette extraordinary was dated 8 October 2026. The regulations take effect on 1 April 2027 and repeal the 2020 regulations from that date. They have 46 regulations in ten chapters and three schedules.
Core requirements
An applicant must be a body corporate with net worth of at least ₹5 crore, of which 10% is in unencumbered liquid assets. It needs a principal officer, a compliance officer and one more employee. The minimum investment is ₹50 lakh per client, though this does not apply to accredited investors, subject to disclosures. Fees are ₹1 lakh for application, ₹10 lakh for registration and ₹5 lakh for renewal every three years. The rules bar up-front fees and guaranteed returns, and clients must get reports at least every three months.
New routes
Chapter III covers eligible fund managers under section 9(12) of the Income-tax Act, 2025, and the ₹50 lakh minimum does not apply to them. Chapter IV covers co-investment portfolio managers serving investors in Category I or II AIFs, who may invest up to 100% of assets in unlisted securities of investee companies. Chapter VI creates PRIM, a route for mutual fund units, with ₹2 crore net worth, a ₹25 lakh minimum per client, and holdings limited to direct plans of Indian mutual funds, index funds, ETFs and specialised investment funds.
Transition periods
Certain net worth and minimum investment provisions for pre-2020 client investments have 12 months from commencement. Rules on commencing business and some prudential limits for pre-2020 investments have 36 months.
Open points
The summary notes that many limits depend on future SEBI circulars, that the regulations state no penalty amounts, and that the notification does not mark which provisions are new against the 2020 text. It did not check the Gazette text, so readers should confirm details there.
Key numbers
- Effective: 1 Apr 2027 (Replaces 2020 rules)
- Net worth: ₹5 crore (10% in liquid assets)
- Client minimum: ₹50 lakh (₹25 lakh under PRIM)
- Structure: 46 regulations (Ten chapters)
What boards and CFOs should note
Three points stand out for finance teams. First, the rules start on 1 April 2027, so firms have time to plan, with some provisions phased over 12 and 36 months. Second, the ₹50 lakh and ₹25 lakh client minimums differ by route. Third, the summary says it did not check the primary text, which is the document to rely on.
Source: Corplawupdates, October 2026. This is a summary of a news report, published as general information. It is not legal, tax or investment advice.
This article is journalism and commentary. It is not a recommendation to buy or sell any security, and it is not professional advice. Read the full disclaimer.
