Markets regulator SEBI has approved a wide-ranging overhaul of portfolio management rules at its board meeting on September 24. The new framework introduces PRIM, a regulated investment product, and revamps settlement rules.

PRIM will have a minimum investment of Rs 25 lakh. The board also widened the investment options available to portfolio managers, giving them more flexibility across asset classes.

The settlement overhaul includes a 60-day pre-show-cause window, giving entities time to respond before formal proceedings begin. SEBI also introduced fast-track settlements for cases involving up to Rs 10 lakh.

The changes are part of SEBI’s push to make compliance simpler and enforcement more predictable. Industry players have long asked for clearer timelines in settlement cases.

The new rules will apply to portfolio managers and market intermediaries across the country. SEBI said detailed circulars with timelines will follow in the coming weeks. The regulator said the changes will take effect after the detailed circulars are issued.