India’s PMS industry at an inflection point, says SEBI Chief Tuhin Kanta Pandey at APMI conference

📰 IN NEWS – India’s PMS Industry at Inflection Point: SEBI Chief Tuhin Kanta Pandey

🗓️ Date: August 7, 2025

🗞️ Source: The Economic Times

🔗 Original Article Link

✅ Why in News?

At the APMI (Association of Portfolio Managers in India) Conference held in Mumbai, SEBI Chairman Tuhin Kanta Pandey stated that India’s Portfolio Management Services (PMS) industry is at an inflection point, driven by:

• Rising private wealth
• Technological advancements
• Progressive regulation

✅ Key Highlights from the SEBI Chief’s Address

🔷 PMS as a Bespoke Investment Model

• PMS is now a “differentiated provider of wealth solutions” tailored to the risk appetite, financial goals, and time horizon of HNIs and Ultra-HNIs.
• India’s GDP grew from USD 279 billion (1993) to USD 3.9 trillion (2024)—fueling demand for personalized financial products.

🔷 Strong Growth Trends

• Number of portfolio managers grew from 361 (FY21) to 479 (June 2025)
• PMS client base grew at a 12% CAGR
• Discretionary PMS (where investment decisions are delegated) now makes up 96% of clients and is growing at 13% CAGR
• Discretionary AUM (excluding EPFO/PF) grew at 23% CAGR

🔷 SEBI Reforms Supporting PMS Growth

• Digital onboarding and simplified disclosure documents
• Optional benchmarking, performance reporting norms, and high watermark fee structures
• Reduced PMS registration time from 74 days (FY24) to 49 days (FY25)

✅ Governance & Investor Protection

• Pandey warned against mis-selling and exaggerated performance claims
• Emphasized need for:
  • Transparent fee structures
  • Client consent for related-party transactions
  • High ethical standards in advisory

✅ Role of APMI (Formed in 2021)

• Promotes collaboration between SEBI and PMS managers
• Helps:
  • Simplify regulatory compliance
  • Standardize reporting formats
  • Drive investor awareness and digital transformation

✅ Key Takeaway

“India’s PMS industry has the regulatory backing, investor demand, and technological capability to become a core part of its wealth management ecosystem—but sustained growth depends on trust, innovation, and governance.” — Tuhin Kanta Pandey