With regard to the annual conclave of the Association of Portfolio Managers in India (APMI), the SEBI chef also insisted on the industry agency to curb misleading claims made by a few registered portfolio managers.
“The PMS industry (portfolio manager services) must modernize onboarding, reporting and customer involvement via digital solutions to remain competitive and trusted,” said the Sebi chef.
He explains that the PMS industry is at an inflexive point, he said: “You have a powerful position, a flexible regulatory framework, active industry involvement through the association and a rising pool of informed investors.”
According to the market regulator, the number of registered portfolio managers rose from 361 at the end of FY21 to 479 from 30 June 2025.
In the same period, the total customer base with a composite annual growth rate of 12 percent grew, with discretionary PMS customers growing by 13 percent annually and now make up about 96 percent of all customers, Pandey said. Discretionary Aum (Assets Under Management), which is non-etfo PF, GREW 23 per cent Annually, Indicating Increased Client Preference to Delegate Active Management of Their Portfolios, He Said, Adding This Aum also Makes Up Sign of Sign of Sign of Signyxyyyyyyyyyyyyyyyyyyyyyy Sign of the Innit of the Innit of the In In InNe INTRIALYYYYY SOUNICYYYY SOUNICYYYYY While non-discretionary and advisory client counts have declined, their aums have risen.
“This has shown that there are still significant PMS customer relationships in these categories. But this growth comes with a mandate to maintain trust and professional behavior,” said Pandey.
The Sebi Chief notes that customers entrust portfolio managers with their capital and warned the SEBI chef that “any decrease in administrative standards will erode that trust.”
Sebi has worked with the association to bring in a Slew of Reforms Such as streamlining the process to digx onboard clients, simplification of disclosure documents, specifics clear guidelines on infrastructure adequacy, bringing PMS or secondsbutorTibutors Made Optional, and Issuance of Consolidated Guidance by Your Master Circularars, Aimed at Ease of Business to Support the Evolution of the PMS Industry, he said.
In addition, he said, an operational manual for registration and postal registration activities is also available, so that Sebi’s average processing time is shortened from 74 days in FY23-24 to 49 days in FY24-25.
“These are not only administrative conveniences; they are able to concentrate on carrying out your core activity of meeting the delivery of customers. Although PMS focuses on advanced investors, we have worked with APMI on reforms for protecting investors,” Pandey said.
Some of these reforms include standards for performance reporting and benchmarking, investment limits for transactions with related parties with previous permission from the customer, disclosure of investor complaints data on PMS websites, he said.
Emphasizes that the growing demand for tailor -made asset management outside the traditional space of investment funds reflects, reflects the refinement of investors, he said that the lead of portfolio managers is the flexibility when delivering tailor -made strategies.
“You must ensure that customers have the considerations of the risk return, the customized nature of the mandate and the advantage of owning underlying effects, understanding benefits that do not agree. Training every customer about his own unique risk feed is a first step in building a real diversified portfolio,” Pandey said.
“By combining the benefits of investment funds with the possibilities of PMS, investors in India can build portfolios that are both resilient and differentiated,” he said.
The association and the industry must curb misleading claims of some registered portfolio managers, Pandey said, adding that “such exaggerated performance claims can undermine confidence and block the growth of this industry.
He also insisted in the industry to ensure that customers do not match the considerations of the risk return, the tailor-made nature of the mandate and the advantage of owning underlying effects, those benefits that may agree on pooled products. PTI
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