About Chenab River:

• It is a tributary of the Indus River.
• Origin: It is formed by the confluence of two streams, Chandra and Bhaga, in the Lahaul and Spiti Districts of Himachal Pradesh.
• In its upper reaches, it is also known as the
• It flows through Jammu and Kashmir union territory, Himachal Pradesh and after receiving the Jhelum River near Trimmu, the Chenab empties into the Sutlej River.
• Major Tributaries:
  • Left Bank: Niru, Tawi, Neeru, and Liddrari
  • Right Bank: Ans, Bhut Nalla, Bichleri, Kalnai Marusudar and Miyar Nalla.
• Major Dams on Chenab River: Salal (rockfill dam), Baglihar, and Dul. 
• The waters of the Chenab are shared by India and Pakistan as per the terms of the Indus Water Treaty.

About Chenab River:

• It is a tributary of the Indus River.
• Origin: It is formed by the confluence of two streams, Chandra and Bhaga, in the Lahaul and Spiti Districts of Himachal Pradesh.
• In its upper reaches, it is also known as the
• It flows through Jammu and Kashmir union territory, Himachal Pradesh and after receiving the Jhelum River near Trimmu, the Chenab empties into the Sutlej River.
• Major Tributaries:
  • Left Bank: Niru, Tawi, Neeru, and Liddrari
  • Right Bank: Ans, Bhut Nalla, Bichleri, Kalnai Marusudar and Miyar Nalla.
• Major Dams on Chenab River: Salal (rockfill dam), Baglihar, and Dul. 
• The waters of the Chenab are shared by India and Pakistan as per the terms of the Indus Water Treaty.

About Bornadi Wildlife Sanctuary:

• Location: It is located in Udalguri district & Baksa District of Assam.
• The sanctuary is sited on the eastern Himalayan foothills and shares the Indo-Bhutan international transboundary
• This sanctuary is named after the river Bornadi which flows on its western border.
• The Nalapara River which originates from Bhutan flows from north to south along its eastern edge.
• It was established in 1980 to protect the hispid hare(Caprolagus hispidus) and pigmy hog (Porcula salvania). 
• Climate: It has a typical subtropical monsoon climate.
• Vegetation: It consists of tropical semi-evergreen, moist and dry deciduous.
• Flora: Euphorbiaceous Scrub, Alstonia scholaris, Garuga pinnata, Aphanamixis polystachya, Toona ciliata, Mesua ferrea, Terminalia chebula, Bischofia javanica, Bridelia retusa, Mellotus
• Repandus etc.
• Fauna: Pigmy Hog and Hispid hare, Asiatic Elephant, Royal Bengal Tiger, India Bison, Hog Deer, Wild Boar, etc.

About BHAVYA Rasayan Scheme:

• It was launched for the establishment of three dedicated chemical parks across the country.
• It is designed to promote the development of the chemical industry across the entire value chain, including upstream, downstream and ancillary industries.
• Time Period: The scheme will be implemented over five years, from FY 2026-27 to FY 2030-31.
• Features of BHAVYA Rasayan Scheme:
  • Financial Assistance: The Centre will provide financial assistance of up to ₹1,000 crore for each chemical park, subject to a minimum contribution of ₹500 crore by the respective state government.
  • Selection Process: The chemical parks will be developed by state governments through a challenge-based selection process, with each park requiring at least 2,000 acres (8 sq. km.) of contiguous, encumbrance-free land.
  • The parks will feature plug-and-play infrastructure tailored to the needs of the chemical sector, including
    • Common Effluent Treatment Plants (CETPs), Treatment, Storage and Disposal Facilities (TSDFs), water supply and distribution systems, solvent recovery and distillation facilities, steam generation and distribution networks, interconnected pipeline systems, and logistics and warehousing infrastructure.

About Portfolio Management Service:

• It is registered under the SEBI (Portfolio Managers) Regulations, 2020.
• It is a professional investment service where a qualified fund manager takes charge of the equity, debt and other securities portfolio of a customer — who is a high net-worth individual.
• Who can offer: Only corporate entities, companies or LLPs with SEBI registration can legally offer these services in India.
• Types of PMS:
  • Discretionary PMS: In this type of PMS services, the portfolio manager has complete autonomy to make investment decisions on behalf of the investor.
  • Non-Discretionary PMS: In non-discretionary PMS, the portfolio manager provides recommendations, but the final decision to buy or sell rests with the investors themselves.
  • Advisory PMS: In Advisory PMS, the portfolio manager offers investment advice, and the investor executes transactions independently.
• Key regulations about PMS:
  • Registration: All PMS providers must register with SEBI.
  • Minimum Investment Requirement: SEBI mandates a ₹50 lakhs minimum investment, targeting high net worth investors capable of managing associated risks.
  • Disclosure Obligations: PMS providers must regularly update investors with performance reports, fees, and risk disclosures.
  • Custodian Engagement: An independent custodian is required to hold investor assets to eliminate conflicts of interest.
  • Compliance Monitoring: Each PMS provider is required to appoint a compliance officer to ensure adherence to SEBI regulations.

Why in the News?

• The Union Cabinet has approved a draft Bill to amend the Public Examinations (Prevention of Unfair Means) Act, 2024, introducing stricter punishments of up to 10 years in jail and Rs 10 crore in fines for exam paper leaks, along with time-bound trials and statutory fast-track courts.

What’s in Today’s Article?

• About Public Examinations Act (Coverage, Punishment, Limitations, etc.)
• News Summary (Key Amendments, Background for the Trigger, Significance, Challenges, etc.)

The Public Examinations (Prevention of Unfair Means) Act, 2024

• The Public Examinations (Prevention of Unfair Means) Act, 2024, is India's first dedicated national law aimed at curbing leaks, malpractices, and organised cheating in public examinations. It came into effect on June 21, 2024.
• Coverage
  • Union Public Service Commission (UPSC)
  • Staff Selection Commission (SSC)
  • Railway Recruitment Board (RRB)
  • Institute of Banking Personnel Selection (IBPS)
  • National Testing Agency (NTA)
• Existing Punishments
  • Section 10: Punishment for individuals resorting to unfair means: Imprisonment of 3 to 5 years and a fine up to Rs 10 lakh.
  • Section 11: Punishment for organised crime: Imprisonment of 5 to 10 years and a fine of at least Rs 1 crore.
• Limitations of the Existing Law
  • Despite the existence of the 2024 Act, several challenges persisted:
    • Investigation and trial delays: Cases dragged on for years without resolution.
    • Absence of fast-track courts: No dedicated judicial infrastructure for speedy trials.
    • Limited deterrence: Existing punishments were seen as insufficient against organised networks.
    • Lack of statutory timelines: No prescribed time limits for probe and trial.

News Summary: Cabinet Approves Amendments

• Following the announcement by PM Modi, the Union Cabinet has approved a draft Bill to amend the Public Examinations (Prevention of Unfair Means) Act, 2024.
• The Bill is expected to be introduced in Parliament shortly.

Key Amendments Proposed

• Stricter Punishments
  • The proposed amendments significantly enhance the penalties for exam-related offences:
    • Imprisonment: Up to 10 years
    • Fine: Up to Rs 10 crore
  • The stricter penalties are expected to strengthen deterrence against all forms of exam fraud.
• Time-Bound Investigation and Trial
  • Investigation: Must be completed within two months.
  • Trial: Must be completed within three months.
  • Total timeline: Cases must be concluded within five months.
  • This addresses one of the most serious weaknesses in the existing framework, prolonged delays in investigation and judicial proceedings.
• Statutory Backing for Fast-Track Courts
  • The Bill provides statutory backing for the establishment of fast-track courts specifically to handle exam paper leak cases.
  • Law and Justice Minister Arjun Ram Meghwal announced that fast-track courts would initially be set up in the High Courts of Bombay, Calcutta, Delhi and Madhya Pradesh.
  • These are the states where cases pertaining to the NEET paper leak are currently ongoing.

Background and Trigger for the Amendment

• The amendments come in response to widespread protests and public anger over:
  • NEET-UG paper leak in May 2026.
  • Irregularities in the CBSE school examination process.
  • Calls for reforms in the education system.
  • Demands for compensation to families of students who died by suicide after the NEET-UG paper leak.
• Various student groups organised protests, demanding strict action against those responsible for exam irregularities.
• PM Modi announced the government's decision to bring in a tough new law and fast-track courts. The Cabinet also approved the draft Bill.

Significance of the Amendments

• Stronger Deterrence
  • The enhanced punishment of up to 10 years imprisonment and Rs 10 crore fine sends a strong signal that exam fraud will not be tolerated.
  • The significantly higher financial penalty hits organised networks economically.
  • The combination of criminal and financial penalties strengthens the legal framework.
• Speedier Justice
  • The five-month deadline for investigation and trial addresses the problem of delayed justice.
  • Fast-track courts ensure dedicated judicial infrastructure for exam-related cases.
  • Quick resolution acts as a stronger deterrent than prolonged proceedings.
• Institutional Reform
  • Statutory backing for fast-track courts institutionalises the special judicial mechanism.
  • Clear timelines reduce procedural delays and administrative inefficiencies.
  • The amendments address gaps identified during the implementation of the 2024 Act.
• Public Confidence
  • The amendments respond to widespread public anger over exam leaks.
  • They aim to restore faith in the integrity of public examinations.
  • They address the concerns of students and parents affected by exam irregularities.

Challenges Ahead

• Implementation
  • Setting up fast-track courts across the country will require significant judicial infrastructure.
  • Training judges and prosecutors for specialised exam fraud cases.
  • Ensuring that investigating agencies have adequate resources to meet the two-month deadline.
• Legal and Procedural
  • Balancing speed with fairness: ensuring that time-bound trials do not compromise the rights of the accused.
  • Coordination between investigating agencies and the judiciary to meet timelines.
  • Managing a high volume of cases that may arise with stricter enforcement.
• Systemic Issues
  • Addressing the root causes of exam leaks, including corruption in recruitment and examination bodies.
  • Strengthening internal controls in institutions like the NTA, UPSC, and SSC.
  • Improving the digital security of examination systems to prevent leaks.
• Judicial Capacity
  • The High Courts of Bombay, Calcutta, Delhi, and Madhya Pradesh will need additional judges and staff.
  • Ensuring continuity of fast-track courts beyond initial cases.
  • Managing existing backlog while adding new fast-track cases.

Context

• India has become the second-largest supplier of seafarers globally, with over 3.2 lakh personnel serving international shipping.
• They play a crucial role in global trade, energy security, and the Blue Economy, yet operate in a complex system involving multiple jurisdictions, flags of convenience, and diverse stakeholders.
• Recent conflicts in West Asia, the Red Sea, and the Black Sea have exposed the vulnerability of Indian seafarers and underscored the need for stronger protection.

India's Growing Maritime Workforce

• Indian seafarers work across international waters without permanently residing abroad.
• A single voyage may involve an Indian crew member employed by a foreign company, sailing on a vessel registered in another country and carrying cargo owned elsewhere.
• This fragmented structure creates uncertainty regarding responsibility during emergencies, often delaying rescue, legal assistance, and repatriation.

Challenges Faced by Indian Seafarers

• Complex Jurisdictional Responsibility
  • The multinational nature of shipping often blurs accountability among ship-owners, Flag States, insurers, and port authorities.
  • During crises such as attacks, detention, or abandonment, Indian diplomatic missions frequently struggle to identify the responsible authority, delaying assistance.
• Rising Security Threats
  • Commercial ships increasingly operate through conflict-prone waters.
  • Missile attacks, drones, piracy, hostage-taking, and sea mines in the Red Sea, Gulf of Aden, West Africa, and West Asia have endangered civilian crews.
  • Indian seafarers have become unintended victims of geopolitical conflicts despite having no role in them.
• Crew Abandonment
  • India records one of the highest numbers of abandoned seafarers worldwide.
  • Many face unpaid wages, inadequate food and medical care, confiscated documents, and delayed repatriation.
  • Weak enforcement of the Maritime Labour Convention (MLC) by some flag States further worsens their plight.
• Information and Communication Gaps
  • Although ship-tracking technology reveals a vessel's location, it rarely provides information about the crew's safety.
  • Families often remain unaware whether their loved ones are injured, detained, or stranded, causing severe anxiety.
• Limited Consular Preparedness
  • India's diplomatic missions are organised geographically rather than around mobile maritime workers.
  • The absence of specialised maritime officers, coordination with ports, hospitals, insurers, and legal experts often slows emergency response.

Government Initiatives

• The Seafarer First initiative marks an important step toward proactive protection by introducing a tracking dashboard, monitoring of high-risk regions, and liaison officers for affected families.
• The Directorate General of Shipping has also restricted deployment on vessels associated with crew abandonment and advised against deployment through conflict-prone routes such as the Strait of Hormuz.

Existing Gaps

• India still lacks a permanent Maritime Consular Protocol defining responsibilities during emergencies.
• Existing bilateral maritime agreements primarily facilitate employment and recognition of certificates but provide limited provisions for legal assistance, consular access, emergency evacuation, or compensation.
• Additionally, many seafarers receive insufficient information regarding vessel ownership, insurance status, sanctions, or previous abandonment records before signing contracts.

Way Forward

• India should establish a dedicated maritime consular network with trained officers in major shipping hubs.
• The Seafarer Dashboard should remain operational for all designated high-risk maritime regions.
• A comprehensive Maritime Consular Protocol should define procedures for distress response, rescue, legal aid, and repatriation.
• Recruitment agencies must ensure transparency by disclosing vessel ownership, insurance coverage, sanctions, and previous abandonment history before employment.
• Seafarers should have the right to refuse deployment into officially designated conflict zones without facing penalties.
• At the international level, India should collaborate with the Philippines, Indonesia, the International Maritime Organisation (IMO), and the International Labour Organisation (ILO) to establish common standards on crew welfare, detention, abandonment, and repatriation.
• Stronger enforcement of the Maritime Labour Convention and protection of commercial shipping from attacks are essential to safeguarding civilian seafarers.

Conclusion

• India's maritime ambitions extend beyond ports, shipping corridors, and naval capability.
• They depend equally on protecting the citizens who sustain global maritime commerce.
• Ensuring proactive governance, international cooperation, transparent recruitment, robust consular support, and effective legal safeguards will strengthen India's maritime leadership while fulfilling its responsibility towards every Indian seafarer, regardless of the flag under which they serve.

Context

• India aims to become a Viksit Bharat by 2047, but achieving this goal requires sustained 8–9% GDP growth, productive employment, and inclusive development.
• Rising youth unemployment, slowing structural transformation, increasing income inequality, and low Female Work Participation Rate (WPR) have weakened the economy.
• While external shocks such as the West Asia conflict have exposed these vulnerabilities, domestic policy shocks since 2016 have already slowed job creation and reduced private investment.
• Unlocking women’s employment is essential for restoring growth.

India’s Employment Challenge

• India’s recent growth has been largely jobless, with employment failing to keep pace with the expanding workforce.
• Economic disruptions caused by demonetisation, a poorly implemented GST, the NBFC crisis, and the COVID-19 pandemic reversed structural transformation by increasing dependence on agriculture and reducing manufacturing employment.
• The resulting rise in inequality weakened aggregate demand, lowered private investment, and slowed non-farm job creation, limiting India’s long-term growth potential.

Women’s Employment: A Powerful Growth Multiplier

• Expanding women’s participation in the workforce is one of the strongest drivers of economic growth.
• A 10-percentage-point increase in female WPR could raise GDP growth by nearly 2 percentage points.
• Greater female employment:
  • Expands the labour supply and productive capacity.
  • Raises household incomes, consumption, and savings.
  • Improves nutrition, education, and healthcare, strengthening human capital.
  • Promotes productivity, innovation, and competitiveness through gender-diverse workplaces.
• Women’s employment is therefore both an economic necessity and a tool for inclusive development.

Why India’s Female Work Participation Remains Low?

• India’s female WPR remains below 30%, among the lowest globally.
• During the 1980s and early 1990s, women’s participation was high because of agricultural employment.
• However, mechanisation, declining demand for manual labour, and rising education reduced female participation between 2004 and 2018, reflecting the first phase of the U-shaped labour participation hypothesis.

The Illusion of Rising Female Employment after COVID-19

• The rise in female WPR after 2020 largely reflected economic distress rather than quality employment.
• Pandemic-induced reverse migration and shrinking urban jobs forced many women into Unpaid Family Labour (UFL), subsistence farming, animal husbandry, and poultry.
• This distress-driven feminisation of agriculture increased labour participation but not productive or secure employment.

Manufacturing: The Missing Link

• India’s growth has been concentrated in capital-intensive sectors such as finance, IT, and organised manufacturing, which generate limited employment.
• Labour-intensive industries like textiles, garments, footwear, food processing, and MSMEs experienced declining employment between 2013 and 2019.
• Despite Make in India and the Production-Linked Incentive (PLI) scheme, women’s manufacturing employment in 2019 remained below its 2004 level, recovering only by 2022. Expanding labour-intensive manufacturing is therefore critical for employment generation.

Regional Divide: Lessons from Tamil Nadu

• A sharp North-South divide characterises female employment.
• Tamil Nadu, with only 5–6% of India’s population, employs over 40% of the country’s women factory workers due to its strong textile, electronics, footwear, and automobile industries, combined with better female literacy, transport, hostels, and social acceptance of women workers.
• In contrast, many northern states suffer from weak public education, poor healthcare, high malnutrition, low female mobility, and limited industrialisation.
• Bihar, for instance, has a female WPR of only 15%.

The Crisis of Educated Young Women

• Although secondary education has achieved near gender parity, employment opportunities have not kept pace.
• The number of women aged 15–29 years who are NEET (Not in Employment, Education or Training) has risen from below 70 million before 2004 to over 100 million by 2018.
• Rising unemployment among educated women represents a major loss of India’s demographic dividend.

Way Forward

• India should promote labour- intensive manufacturing, strengthen MSMEs, improve public education and healthcare, enhance women’s safety, transport, childcare, and hostel facilities, expand skill development, and encourage women’s entrepreneurship.
• Replicating the Tamil Nadu model in northern states through industrial clusters and gender-friendly infrastructure can substantially increase female employment and accelerate inclusive growth.

Conclusion

• India cannot achieve Viksit Bharat by excluding half of its population from productive employment.
• Higher female labour force participation, stronger manufacturing, investment in human capital, and greater gender equality are essential for generating employment, boosting productivity, and sustaining long-term economic growth.
• Women’s employment is not merely a social objective but the missing engine of India’s development.

Why in News?

• The United States has imposed 10% additional tariffs on imports from India under Section 301 of the US Trade Act, lower than the 12.5% initially proposed.
• The reduction follows India's decision to prohibit imports of goods produced using forced labour, aligning with US concerns while India and the US continue negotiations on a bilateral trade agreement.

What’s in Today’s Article?

• Why the US Imposed Section 301 Tariffs
• India's Policy Response
• Tiered US Tariff Structure
• Impact on India's Export Competitiveness
• Textile Tariff-Rate Quotas (TRQs) - A Competitive Concern
• Major Exemptions from Section 301 Tariffs
• Future Trade Risks
• Conclusion

Why the US Imposed Section 301 Tariffs?

• Section 301 of the US Trade Act:
  • It authorises the US to investigate and respond to unfair foreign trade practices.
  • Remedies include additional tariffs, import restrictions or negotiated settlements.
  • Unlike Section 122, Section 301 measures remain effective until modified or withdrawn.
• Earlier, the US Trade Representative (USTR) initiated an investigation against 60 trading partners, alleging inadequate measures to prevent imports of goods produced through forced labour.
• The tariffs replace temporary Section 122 tariffs, which could remain in force only for 150 days, whereas Section 301 tariffs are permanent unless reviewed by the US administration.
• The measure seeks to protect American industries from unfair trade practices linked to forced labour.

India's Policy Response:

• Ahead of the US decision, the Directorate General of Foreign Trade (DGFT) amended the Foreign Trade Policy by prohibiting the import of goods manufactured wholly or partly using forced labour.
• Significance:
  • India's compliance reduced the proposed tariff from 12.5% to 10%.
  • It strengthened India's image as a responsible trading partner.
  • The move complements ongoing India-US Free Trade Agreement (FTA) negotiations.
• DGFT: Functions under the Ministry of Commerce and Industry, DGFT implements India's Foreign Trade Policy, and regulates exports and imports through notifications and licensing mechanisms.

Tiered US Tariff Structure:

• Most favoured category:
  • The European Union (EU) and Taiwan receive the most favourable treatment. Additional Section 301 tariffs apply only where existing Most Favoured Nation (MFN) tariffs are below specified thresholds.
  • MFN: A core World Trade Organization (WTO) principle requiring members to extend the same tariff treatment to all WTO members unless covered by FTAs or other recognised exceptions.
• India's category (10% tariff): India joins 17 economies, including Bangladesh, Pakistan, Sri Lanka, Malaysia, Indonesia, Canada, Mexico, and the United Kingdom.
• Least favoured category (12.5%): Countries facing higher tariffs include China, Vietnam, Russia, Brazil, Australia, Türkiye, Saudi Arabia, and Philippines. Thus, India enjoys a relative tariff advantage over several major export competitors.

Impact on India's Export Competitiveness:

• Positive outcomes:
  • Indian exporters retain competitiveness in labour-intensive sectors such as textiles, garments, leather, and footwear.
  • India's tariff burden is lower than that of China and Vietnam, improving export prospects.
• Limitations:
  • Around 70% of India's exports to the US will now attract existing MFN tariff, plus 10% Section 301 tariff.
  • Products already covered under Section 232 (steel, aluminium, copper, automobiles and auto components) continue to face 25–50% tariffs.

Textile Tariff-Rate Quotas (TRQs) - A Competitive Concern:

• The US introduced TRQs for Bangladesh, Cambodia, Indonesia, and Malaysia.
• Features:
  • Limited quantities of textiles and apparel from these countries can enter the US without Section 301 tariffs for three years.
  • These countries are also encouraged to source US cotton and textile inputs.
• Implications for India: India has not received a TRQ, potentially reducing its competitiveness in textile exports. Bangladesh, a major importer of Indian cotton and fibre, may increasingly shift towards US inputs.

Major Exemptions from Section 301 Tariffs:

• The US has exempted several categories from additional tariffs, including -
  • Aircraft and aviation equipment.
  • Pharmaceutical products and pharmaceutical ingredients.
  • Certain fertilisers, pesticides and industrial chemicals.
  • Pig iron, aluminium scrap and strategic minerals.
  • Semiconductor manufacturing equipment.
  • Battery waste and recyclable materials.
  • Agricultural inputs, seeds and selected food products.
  • Medical devices such as MRI machines, ECG equipment and defibrillators.
  • Selected artworks, antiques and collectibles.
• These exemptions aim to prevent supply disruptions and inflation while safeguarding critical industries.

Future Trade Risks:

• Apart from forced labour concerns, the USTR is conducting another investigation into excess manufacturing capacity involving India, China, the EU, Japan, Singapore, Switzerland and others.
• Possible consequences include - Additional trade restrictions or tariffs, greater scrutiny of industrial subsidies and manufacturing policies, and new challenges for India's export sector despite ongoing FTA negotiations.

Conclusion:

• India's prohibition on imports produced through forced labour enabled it to secure a lower 10% US Section 301 tariff, preserving its competitiveness relative to major rivals such as China and Vietnam.
• It strengthens India's position in labour-intensive exports and supports ongoing India-US trade negotiations.
• However, the absence of textile TRQs and the possibility of further US investigations into excess manufacturing capacity indicate that trade relations will continue to evolve, requiring sustained policy reforms and strategic engagement.

Why in news?

The Securities and Exchange Board of India (SEBI) has proposed a sweeping review of the SEBI (Portfolio Managers) Regulations, 2020, through a consultation paper released recently.

This marks one of the most comprehensive reviews of portfolio management services (PMS) regulations since their notification in 2020.

What’s in Today’s Article?

• Why the Overhaul Is Needed?
• What Is Portfolio Management Service (PMS)?
• Key Proposed Reforms
• Balancing Innovation with Investor Protection

Why the Overhaul Is Needed?

• Assets managed by portfolio managers have more than doubled over the past six years, prompting SEBI to modernise the regulatory framework.
• The reforms aim to offer greater flexibility to portfolio managers and broader investment options to sophisticated investors, while adapting to the growing complexity of India's capital markets.

What Is Portfolio Management Service (PMS)?

• PMS is a professional investment service registered under the SEBI (Portfolio Managers) Regulations, 2020.
• A qualified fund manager manages the equity, debt, and other securities portfolio of a high net-worth client.
• Only SEBI-registered corporate entities, companies, or LLPs can legally offer PMS in India.
• SEBI mandates a minimum investment of Rs 50 lakh per client.
• Industry growth
  • PMS assets under management (AUM) rose from Rs 18.07 lakh crore (April 2019) to Rs 42.61 lakh crore (May 2026).
  • Total clients grew from 1.5 lakh to 2.19 lakh over the same period.
  • The number of registered portfolio managers more than doubled — from 226 in 2020 to 515 as of May 2026.

Key Proposed Reforms

• Wider Investment Universe
  • Portfolio managers may be permitted to invest in overseas listed equity and debt securities, aligning PMS rules with those governing mutual funds and alternative investment funds.
  • Investments allowed in "to-be-listed" securities, widening market exposure.
  • Discretionary portfolio managers may invest up to 10% of client AUM in investment-grade unlisted debt securities.
  • Currently, PMS managers cannot invest client funds in foreign securities — though resident individuals can do so independently via the Liberalised Remittance Scheme (LRS), capped at USD 250,000 per financial year.
• New 'Mutual Fund-Only' PMS (MF-PMS) Category
  • A simplified framework aimed at mass-affluent investors, focused exclusively on managing investments in direct plans of mutual funds, ETFs, and specialised investment funds.
  • Requires separate registration as MF-PMS.
  • Minimum client investment proposed to be reduced from Rs 50 lakh to Rs 25 lakh.
  • Minimum net worth requirement for applicants proposed to be lowered from Rs 5 crore to Rs 2 crore.
  • Mutual fund distributors (MFDs) operating under MF-PMS must maintain arm's length separation between their MFD and MF-PMS functions through distinct departments, with client-level segregation — the same client cannot be offered both services by one entity.
• Easing Compliance Burden
  • Greater flexibility in using derivatives for hedging and investment strategies, with exposure allowed up to 1.25 times client AUM.
  • A new framework permitting independent fund managers to operate under registered PMS platforms, with compliance responsibility remaining with the registered portfolio manager.
  • Firms managing assets below Rs 100 crore may be exempted from maintaining a separate dealing room, cutting operational costs for smaller players.

Balancing Innovation with Investor Protection

• SEBI has stressed that the reforms aim to strike a balance between innovation, ease of doing business, and investor safeguards.
• The regulator believes the evolving PMS industry requires a framework that supports greater product diversity while maintaining adequate oversight.

Conclusion

SEBI's proposed PMS overhaul reflects a maturing regulatory approach — expanding investment avenues and lowering entry barriers to serve a broader investor base, while retaining safeguards through segregation norms and enhanced oversight.

If implemented, it could significantly deepen and diversify India's portfolio management landscape.