New Delhi, July 23 -- The Securities and Exchange Board of India (Sebi) has proposed a sweeping revamp of portfolio management regulations that would create a mutual fund-only portfolio management service (PMS) category while expanding the investment universe for portfolio managers to include to-be-listed, unlisted securities and overseas assets.

In a consultation paper issued on Thursday, the market regulator undertook a comprehensive review of the Sebi (Portfolio Managers) Regulations, 2020, aimed at broadening investment avenues, easing compliance and simplifying the regulatory framework for an industry whose assets under management (AUM) are fast growing.

PMS allows professional fund managers to run customized portfolios for affluen...