SEBI's Regulatory Revamp: Navigating the Changing Landscape of Portfolio Management Services
Admin
073103 Aug, 2023
If you are a high-net-worth individual looking for a portfolio management service (PMS), we would like to inform you about the latest regulatory changes from the Securities and Exchange Board of India (SEBI)!
PMS firms have seen a 40% increase in assets under management since February 2020, but there have been concerns about sneaky tactics and front-running. To address these issues, SEBI has tightened regulations on the PMS industry. One of the changes is the introduction of a multi-cap index to replace the large-cap index in prescribed benchmarks.
While some PMS providers are worried that these new rules will increase costs and make it harder for new players to enter the market, the Association of Portfolio Managers of India (APMI) says they are necessary to tackle systemic issues.
But what do the numbers say? While PMS schemes offer bespoke investment solutions and concentrated bets, analysis shows that over 50% of PMS schemes underperform their benchmarks. So if you're considering a PMS provider, make sure to do your due diligence and check their track record against industry benchmarks.
What do you think of these regulatory changes? Are they a necessary step to ensure greater transparency and accountability in the PMS industry, or will they harm competition and innovation? Share your thoughts in the comments! #India#PMS#regulation#investing#HNIs#assetmanagement#front-running
PMS firms have seen a 40% increase in assets under management since February 2020, but there have been concerns about sneaky tactics and front-running. To address these issues, SEBI has tightened regulations on the PMS industry. One of the changes is the introduction of a multi-cap index to replace the large-cap index in prescribed benchmarks.
While some PMS providers are worried that these new rules will increase costs and make it harder for new players to enter the market, the Association of Portfolio Managers of India (APMI) says they are necessary to tackle systemic issues.
But what do the numbers say? While PMS schemes offer bespoke investment solutions and concentrated bets, analysis shows that over 50% of PMS schemes underperform their benchmarks. So if you're considering a PMS provider, make sure to do your due diligence and check their track record against industry benchmarks.
What do you think of these regulatory changes? Are they a necessary step to ensure greater transparency and accountability in the PMS industry, or will they harm competition and innovation? Share your thoughts in the comments!
#India #PMS #regulation #investing #HNIs #assetmanagement #front-running