The markets regulator Securities and Exchange Board of India today approved a proposal to allow foreign fund managers to act as 'Portfolio Managers' under a relaxed regulatory regime. At a meeting held in Mumbai today, Sebi's board approved issuance of a consultation paper for 'amendments to the Sebi Portfolio Managers Regulations, 1993', which would make it easier for the overseas funds to relocate to Indian shores.The move assumes significance in the wake of the government already having announced taxation incentives for the offshore fund managers willing to relocate to India.The proposed amendments include a separate section on Eligible Fund Managers that would specify conditions that will apply to their activities as portfolio managers.The new rules would also specify the procedure to be followed by a Sebi-registered Portfolio Manager to function as an Eligible Fund Manager.Besides, Sebi would lay out the procedure for registration of an existing foreign based fund manager desirous of relocating to India or a fresh applicant to function as an Eligible Fund Manager.