Master Circular for Portfolio Managers

On July 16, 2025, the Securities and Exchange Board of India (SEBI) issued an updated Master Circular for Portfolio Managers (SEBI/HO/IMD/IMD‑POD‑1/P/CIR/2025/104), consolidating all applicable regulations and circulars issued up to March 31, 2025

🧩 Key Highlights

Consolidation & Rescission of Legacy Circulars

    SEBI has rescinded 39 earlier circulars, spanning areas like fee disclosures, investment caps, advertisement conduct, AUM reporting, complaint protocols, and cybersecurity.

    Enhanced Reporting Framework

      Portfolio managers must now adhere to a structured and frequent reporting regime via SEBI’s Intermediary Portal.

      Enhanced Performance & Valuation Norms

        Managers must use time-weighted rate of return (TWRR) and XIRR for performance measurement, benchmarked against SEBI-approved indices

        Cyber Monitoring & Social Media Vigilance

          Reflecting concerns over ‘finfluencers’ impersonating licensed portfolio managers on platforms like Telegram and WhatsApp, SEBI requires regular social media monitoring. Portfolio managers must take prompt, decisive action—such as issuing public advisories or filing police complaints—against impersonation attempts
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          Why It Matters

          Investor Protection: With tightened controls around associate-party investments, cybersecurity, and performance disclosure, investors can expect a safer, more transparent experience.

          Compliance Clarity: By rescinding older circulars and centralizing rules, SEBI has provided a single go-to document, reducing regulatory ambiguity.

          Operational Rigor: From trade execution to cyber resilience, the Circular enforces professional-grade policies and controls across portfolio management operations.

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