SEBI Amends Portfolio Managers Regulations with New Disclosure Requirements [Read Notification]
SEBI tightens Portfolio Managers Regulations with stronger client disclosure norms and deletion of Schedule V.
SEBI - Taxscan
SEBI - Taxscan
The Securities and Exchange Board of India (SEBI) issued a notification dated September 1, 2025, announcing the Securities and Exchange Board of India (Portfolio Managers) (Amendment) Regulations, 2025. The amendments bring important changes to the Portfolio Managers Regulations, 2020, with the aim of strengthening investor protection and improving regulatory clarity.
As per the notification, SEBI has introduced three key changes:
- Updated Regulatory Reference – In Regulation 20, clause (xi) has been revised to now simply refer to Schedule IV, replacing the earlier wording. This is a structural change for better clarity in referencing compliance requirements.
- Stronger Client Disclosure Norms –
➔Under the amended Regulation 22(3), portfolio managers must provide prospective clients with a Disclosure Document in the format prescribed by SEBI, along with a certificate in Form C (Schedule I), before entering into a portfolio management agreement.
➔This ensures that clients receive standardized and regulator-approved information, empowering them to make informed decisions before committing their investments.
- Removal of Schedule V – SEBI has deleted Schedule V from the regulations, thereby simplifying the compliance structure and eliminating redundant provisions.
These changes are designed to increase transparency, accountability, and investor confidence in the portfolio management industry. By mandating standardized disclosures and streamlining rules, SEBI aims to reduce ambiguity for clients while making compliance easier for portfolio managers.
