Speaking with Etrarkets on the sidelines of the APMI conference in Mumbai, Bhavin Shah, founder and CIO of Sameeksha Capital and APMI board member, outlined a growth route map anchored in legal reforms, broader investment partners and improved ease of business.
Shah emphasized that the expansion of PMS penetration beyond subways to Tier-2- and Tier-3 cities, attracting well-to-do investors, family agencies and NRIs, and removing barriers to access and scale will be crucial in the unlocking of the true potential of industry and creating the bharat bhallatititie-ign. Edited fragments –
V) Thank you for speaking with Etrarkets on the sidelines of the APMI conference in Mumbai. Where are the most important objectives that APMI works in the current regulatory and market landscape?
A) APMI continues to serve as a structured platform for a constructive dialogue between the
PMS industry and the regulator. We have played an important role in shaping legal developments that balance the protection of investors with operational flexibility.
1 .. Improving data-driven policy-making and industrial benchmarking through tools such as Paras, which help both supervisors and investors make better-informed reviews of PMS activities and performance.
2. Argues of proportional and practical regulatory approaches, especially for small and medium-sized PMS players, such as the successful renewal of the self-certified RE category and the introduction of a new small RE category under the CSCRF-related to the PMS.
3. Strengthening the participation of industry in policy -making by forming expert committees (on digital initiatives, compliance) and the collection of feedback between members to present collected industrial views to SEBI.
4. Pushing on digital transformation and innovation in the PMS chain, from client onboarding to reporting and compliance in line with global best practices.
5. Stimulans for leadership and education for all investors, media, intermediaries and policymakers from stakeholders to support a better informed and confident PMS ecosystem.
Looking ahead, our most important objectives are:
PMS is very penetrated and there is a huge space for the expansion of the investor base. Record initiatives to expand the PMS Investor Base
Vervolg met SEBI om veel lange in afwachting van kwesties van toetredingsdrempels, barrières voor schaal- en buitensporige nalevingsvereisten aan te pakken, zodat de PMS -industrie kan uitbreiden van de huidige minder dan 500 leden tot tienduizenden leden zoals te zien in andere grote landen en die honderdduizenden duizenden banen voor hoge vaardigheden creëren en India een wereldwijde krachtporter in het portfolioberanagement To fulfill Bharat Bharat Bharat Bharat Bharat Bharat Bharat Bharat Bharat 2047 vision.
V) Can you work out about the steps that APMI is able to strengthen the trust of investors in the PMS industry?
A) 1. Investor confidence is the cornerstone of every financial investment, and this remains a top priority for APMI. We play a crucial role in strengthening trust and transparency throughout the industry and an important milestone in this trip is our responsibility as a designated body to handle the first level of investor complaints under the score platform of Sebi.
A. This development reinforces our role in guaranteeing responsive complaints repair and positions APMI as an important possibility of investor protection within the PMS ecosystem.
2. Another important milestone in building investor confidence is the launch of the Distributor Registration Portal (DRP), a compliance -oriented initiative that brings formal recognition, regulating structure and accountability for PMS distribution.
A. It ensures that investors receive the correct and validated information through their registered distributors, who work within defined compliance parameters. This is an important step in the direction of promoting responsible distribution practices and improving the protection of investors.
3. We launched APMI Insights, an initiative for thinking and data distribution aimed at building the trust of investors by providing validated, reliable information about the developing PMS landscape.
A. Through research publications, newsletters and round table discussions, this platform helps to get a clearer, better informed view of the PMS industry.
4. We are working on Sebi about the accredited investor framework, aimed at simplifying access for advanced investors, while we ensure risk consciousness and responsible on -boarding.
5. APMI has issued Best Practice guides on disclosure of reimbursements and customer reporting, promoting fair disclosure and improved investor communication.
6. We also facilitate the recovery of investors by working with our members to build responsive and transparent complaints resolution processes and a bridge between the regulator and the industry.
V) With more than 20 years of experience in markets you have seen many market cycles. Tell us, how do you feel about 2025 – we have seen a lot – of earthquakes, wars, tariff wars, etc. How do you manage volatility?
A) Many events that are in danger of having a sharp negative impact on the market, in particular the tariff actions of Trump and the war in India Pakistan have taken place and are still in the play. To make matters worse, the final demand is weakened and has influenced the operating results.
Nevertheless, we remain focused on many underlying positives about our economy nowadays: low inflation and potential for further illumination of monetary policy, an excellent tax position of the government and therefore sufficiently dry powder to take actions that are necessary to stimulate the economy, meaningful income tax reduction to spend more money in the government’s bags.
We have avoided taking drastic measures based on our general view of the possibility of a stronger economic expansion based on relevant factors that we see today. We also acknowledge that we have a relatively low direct exposure to companies affected by Trump rates.
V) What is APMI’s vision for the PMS industry in the next 3-5 years?
A) 1. APMI proposes the discretionary non-EPFO PMS industry in an RS.25 Lakh Crore-Plus AUM segment in the coming five years, powered by strong participation of prosperous investors, family agencies and NRIS.
2. We see PMS a trusted, well -governed investment rein, supported by consistent disclosures, transparent reporting and a strong regulatory framework.
3. In the coming years we strive for:
Expand PMS penetration over Tier 2- and Tier 3 cities through distributor enablement and investor consciousness.
Work expanded with SEBI to transform the 2020 regulation that was a major overhaul to the next version that is much more optimized and enables the convenience of entry, the convenience of the scale, the convenience of compliance and the convenience of processing for the portfolio managers. There are many hanging proposals with Sebi and APMI hopes to have them implemented
With a very strong framework for investor protection, it is high time for PMSEs to receive flexibility given to institutional investors, including IPO Participation, QIP participation, removal of peak margin -requirement, arrangement of transactions on a net basis and other related benefits.
Make it easier for investors to evaluate and compare different PMSEs, to open accounts, to go from one PMS to another
Complete long -term requirements of investors to reverse random increases in minimum that are necessary to invest and make it possible for investors to start the second and next PMSEs with lower minima.
Through all these efforts, APMI strives to position the PMS industry of India, one of the most credible and innovative worldwide, for the needs of advanced long-term investors.
(Disclaimer: recommendations, suggestions, views and opinions of experts are their own. These do not represent the views of economic times)
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