SEBI, vide its Circular dated October 24, 2025, has allowed the transfer of Portfolio Management Services (PMS) business between registered portfolio managers to simplify and ease business operations. A PMS can now transfer either its entire business or select investment approaches to another portfolio manager within the same group, subject to surrender of registration (if entire business is transferred). For transfers outside the group, both transferor and transferee must make a joint application to SEBI for prior approval, and the entire PMS business must be transferred. The transferee must assume all existing obligations, liabilities, and pending actions of the transferor through an undertaking. The transfer process must be completed within two months of SEBI’s approval, after which the transferor must surrender its PMS registration. The circular takes immediate effect.
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