SEBI has approved a big overhaul of portfolio management rules. At its September 24 board meeting, the regulator introduced PRIM, a new regulated product, and changed how market cases are settled.

PRIM stands for a new class of regulated investment product with a minimum investment of Rs 25 lakh. It sits between mutual funds and portfolio management services, which usually need larger sums.

The board also widened what portfolio managers can invest in. This gives professional managers more room to build diverse portfolios for wealthy clients.

On the enforcement side, SEBI added a 60-day pre-show-cause window. This means a person or firm gets two months to respond before formal proceedings start.

There is also a fast-track settlement option for smaller cases involving up to Rs 10 lakh. The idea is to close minor violations quickly instead of dragging them through long hearings. Detailed circulars will follow. Investors can read the detailed circulars on SEBI’s website once they are published.