The Securities and Exchange Board of India (SEBI) announced on Thursday that it will allow the $463 billion Portfolio Management Services (PMS) industry to invest in overseas securities for the first time and engage in short selling in equity options. PMS entities can also invest in unlisted debt securities and allocate up to 1.25 times of client assets to exchange-traded derivatives. Additionally, SEBI will permit Foreign Portfolio Investors (FPIs) to participate in non-cash settled, non-agricultural commodity derivatives, and introduce a new PMS product for mutual funds with a minimum investment threshold of 2.5 million rupees.