Mumbai, July 24 -- The Securities and Exchange Board of India (SEBI) has proposed allowing portfolio managers to invest clients' funds in foreign securities and take unhedged short positions through equity exchange-traded derivatives as part of a comprehensive review of the SEBI (Portfolio Managers) Regulations, 2020 aimed at expanding investment avenues and aligning the regulatory framework with evolving market dynamics.

The proposals have been put out for public consultation through a consultation paper on the draft SEBI (Portfolio Managers) Regulations, 2026.

According to the consultation paper, portfolio managers are currently not permitted to invest client funds in foreign securities.

SEBI has proposed permitting investments in li...