NEW DELHI : The board of Securities and Exchange Board of India (Sebi) on Wednesday doubled the minimum investment norm for clients of portfolio management services (PMS) to Rs50 lakh. It also enhanced the networth requirement for PMS to ₹5 crore from ₹2 crore earlier, giving the existing PMS three years to comply with the new norms.
The latest norms for portfolio managers are aimed at curbing mis-selling and weeding out dubious operators from the business.
The Sebi board also tightened the norms for rights issues of listed companies. The capital market regulator also decided to reduce the time taken to process a rights issue to T+31 days from T+55 days earlier. It also made the ASBA facility mandatory for any investor applying to a rights issue.