India's markets regulator is proposing significant rule changes to expand investment options for portfolio managers. The Securities and Exchange Board of India (SEBI) aims to allow these managers to invest client funds in overseas securities and companies that are set to go public with Initial Public Offerings (IPOs).

This move is part of a broader effort to ease regulations for the portfolio management industry. Additionally, SEBI is considering permitting portfolio managers to take unhedged positions in equity derivatives. These proposed changes are expected to offer greater flexibility and potentially enhance returns for clients under portfolio management.

The regulator has invited public comments on these proposals, signaling a potential shift towards a more liberalized framework for investment management in India. The aim is to align Indian regulations with global best practices and attract more capital into the market.