At its 210th Board meeting held in Mumbai, SEBI approved an amendment to the SEBI (Portfolio Managers) Regulations, 2020, aimed at making disclosure requirements more flexible and business-friendly for registered Portfolio Managers. The reform focusses on streamlining the format of the Model Disclosure Document by removing it from the Regulations and shifting to a simplified, circular-based structure.

Currently, the disclosure document serves as a critical source of information that Portfolio Managers provide to investors, helping them make informed decisions. However, the format is hard-coded in Schedule V of the regulations, meaning any change requires a formal amendment.

To improve operational efficiency, the SEBI Board has now approved the deletion of Schedule V, enabling future updates to be made via SEBI circulars instead of regulation amendments.

Going forward, the disclosure document will be divided into two parts: Dynamic and Static. The dynamic section will include content that changes frequently — such as fees or key personnel — while the static section will house disclosures that remain largely unchanged.

This restructuring, developed in consultation with the Association of Portfolio Managers in India (APMI), is intended to ease compliance for Portfolio Managers and improve information clarity for investors.

Importantly, the policy change does not alter the substance of the disclosures required. Instead, it gives managers the flexibility to update only relevant portions, reducing paperwork and ensuring that investors can easily identify material updates.

This reform follows earlier SEBI measures to support ease of doing business in the Portfolio Management space, including the digital onboarding of clients and collective oversight of distributors through APMI. With this latest change, SEBI aims to further streamline compliance and enhance transparency for both Portfolio Managers and investors.