Finance — SEBI proposes expanded derivatives use for Portfolio Management Services

The Securities and Exchange Board of India has proposed allowing portfolio managers greater flexibility in using exchange-traded derivatives, which could enable a wider range of investment strategies. A consultation paper suggests permitting total derivative exposure up to 125% of a client's portfolio, including unhedged short positions up to 50%. The move is expected to help Portfolio Management Services (PMS) offer more sophisticated products like long-short and market-neutral strategies, making them more competitive with Alternative Investment Funds.