SEBI Allows Transfer of PMS Portfolios Between Portfolio Managers

Circular SEBI/HO/IMD/RAC/CIR/P/2025/ 0000000138; Dated: 24.10.2025

The Securities and Exchange Board of India (SEBI), with the objective of promoting ease of doing business, has allowed the transfer of Portfolio Management Services (PMS) business from one portfolio manager to another, subject to regulatory approval.

1. Key Highlights

• SEBI Approval Mandatory – The transfer of PMS business will be permitted only upon prior approval from SEBI.
• Eligible Transfers – Such transfers may take place between portfolio managers:

1. 1. Belonging to the same group, or
   2. From different groups,
      provided both entities hold valid registration as portfolio managers under SEBI regulations.

• Immediate Implementation – The circular is effective immediately, and all PMS entities are required to comply with the prescribed norms before undertaking any transfer activity.

2. Objective

The move aims to:

• Facilitate business continuity in cases such as mergers, reorganisations, or strategic realignments,
• Ensure investor protection through a transparent and regulated transfer process, and
• Simplify operational flexibility for registered portfolio managers.

Click Here To Read The Full Circular