SEBI Notifies PRIM Route for ₹25 Lakh-Plus Mutual Fund Portfolios

Key Takeaways

• SEBI has notified the Portfolio Managers Regulations, 2026, which are scheduled to take effect from April 1, 2027. 
• The PRIM framework allows portfolio managers to invest client money in direct plans of mutual funds, including ETFs, index funds and SIFs. 
• The minimum investment under PRIM is ₹25 lakh, compared with the ₹50 lakh threshold generally applicable to conventional PMS offerings. 

SEBI has formally notified a new regulatory framework for portfolio managers that includes a dedicated route for managing portfolios consisting of mutual fund units. 

The Securities and Exchange Board of India (Portfolio Managers) Regulations, 2026 were notified on October 12 and are scheduled to take effect on April 1, 2027. 

At the centre of the framework is the Portfolio Managers Route for Investing in Mutual Fund units, or PRIM. Under the route, registered portfolio managers will be able to manage portfolios containing direct plans of Indian mutual funds, including exchange-traded funds, index funds and Specialised Investment Funds. 

PRIM carries a minimum investment amount of ₹25 lakh. This is below the ₹50 lakh minimum generally applicable to conventional portfolio management services, which can invest directly across securities rather than being limited to the permitted fund universe. 

Existing portfolio managers can offer PRIM as a separate investment approach. Entities seeking to operate only within the PRIM universe can also seek registration under the prescribed framework. The approved framework provides for a ₹2 crore minimum net-worth requirement for such PRIM-only applicants. 

The new route should not be confused with a change to the way individual investors directly buy mutual fund units. PRIM is a portfolio-management structure in which a registered manager makes fund-selection and allocation decisions for a client subject to the framework. 

SEBI had approved the proposal at its September 24 board meeting before issuing the 2026 regulations in October. 

With the regulations now notified, April 1, 2027 becomes the key implementation date for the revised PMS framework and the new mutual-fund-focused PRIM route.