New Delhi, July 29 -- The Securities and Exchange Board of India (Sebi), in its consultation paper dated 23 July 2026, has proposed a dedicated Mutual Fund-only Portfolio Management Services (MF-PMS) category that invests exclusively in direct plans of mutual funds, exchange-traded funds (ETFs) and specialized investment funds (SIFs). To be sure, some PMS providers already run mutual-fund-only strategies; what is new is a formal category for them, with its own rules.

If the proposals are finalized, the biggest change for investors would be the lower entry threshold. The minimum investment for the new MF-PMS category, would be Rs.25 lakh, against Rs.50 lakh for any PMS today. The net worth required to set up such a business would also red...