The PMS sector, which has around 2.15 lakh customers, managed Rs 10.5 lakh crore of assets (excluding EPFO and PF) as of January 31, 2026, growing at a CAGR of 17%, according to Sebi data.”But regulation alone cannot build a strong industry. The real power of PMS will come from what companies do every day – across governance, suitability, technology and behaviour,” Pandey said.
He emphasized that investor suitability must remain central to the business model. “Risk profiling, suitability assessment and customer communications must be clear, consistent and evidence-based. Going forward, PMS distributors will implement things that will protect the industry from bad buys,” he said.
New RBI Financing Norms
In addition, Pandey said Sebi would examine stockbrokers’ representations on the Reserve Bank of India’s new capital market financing norms. The RBI has proposed to increase the bank guarantee requirements for proprietary traders from 50% to 100%.
“We have received a statement. I saw it on Friday. We will see what we can and should do about it because RBI had initially opened draft guidelines and sought their views,” Pandey said. “It relates to issues around bank guarantees and how much collateral should be given for proprietary trading. There are three to four issues. Now that the representation has come to us, we will look at it.”
Addressing the media after RBI’s board meeting in New Delhi, Governor Sanjay Malhotra said the central bank is not considering any revision to the recently announced rules on bank financing of stock market intermediaries. The framework was finalized after consultations, he said. “There is no change that we are considering.”
Under the new regulations, banks’ lending to brokers will come under greater scrutiny in terms of collateral requirements and purpose of the loan, while proprietary trading will take the biggest hit.
Monitoring gray market trading
Pandey said Sebi is working on a mechanism to introduce oversight of ‘to-be-listed’ stocks – a move aimed at gray market activity linked to upcoming IPOs.
“I think we have given reasonable thought to this issue internally, and the opportunity to do so exists through the exchange mechanism for shares that are not yet listed on the stock exchange – not the entire unlisted space, but the space where Sebi’s jurisdiction arises out of law,” he said.
He added that Sebi would work out the operational details and issue a consultation paper in due course.
Senior Sebi employee suspended
Pandey on Friday also addressed the suspension of a managing director in connection with a ‘sensitive issue of vigilance’. The supervisor is considering disciplinary proceedings.
“The evidence was egregious enough that we were able to take action,” Pandey said. “It is important that if there is such a case, we get to the bottom of it.”
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