India's Rs 42 lakh crore PMS industry at defining inflection point: SEBI
New Delhi, June 11
India's portfolio management services industry -- which manages assets worth around Rs 42 lakh crore and serves more than 2.1 lakh investor accounts -- is at a defining inflection point and has the potential to emerge as a major pillar of the country's investment ecosystem, a senior Securities and Exchange Board of India official said on Thursday.
Speaking at the APMI Leadership Conclave 2026, Manoj Kumar, Executive Director, SEBI said the next phase of growth for the PMS industry must be anchored in transparency, strong governance and investor protection.
"The PMS industry in India is at a defining inflection point. As investor aspirations evolve and demand for personalised wealth management solutions continues to grow, the industry has an opportunity to emerge as a significant pillar of India's investment ecosystem," Kumar said.
He added that industry-wide standardisation, enhanced data transparency and a stronger distribution ecosystem would be crucial for the sector's sustainable growth.
According to Kumar, deeper penetration into Tier-2 and Tier-3 markets, greater investor awareness, responsible distribution practices and collaboration among stakeholders will be critical to building a resilient, trusted and globally competitive PMS industry.
The conclave was organised by the Association of Portfolio Managers in India (APMI), the representative body of SEBI-registered portfolio managers.
APMI Chairman Biharilal Deora said the PMS industry has emerged as an important component of India's wealth management landscape, driven by increasing investor awareness, rising demand for customised investment solutions and a supportive regulatory framework.
"At APMI, we remain committed to fostering constructive engagement between industry participants and SEBI to advance our shared objectives of investor protection, industry development and market integrity," he said.
Deora added that the association has undertaken around 50 strategic initiatives since commencing operations in 2022, focusing on investor protection, regulatory compliance, transparency, digital transformation, professional capacity building and ease of doing business.
Moreover, the event brought together regulators, portfolio managers, distributors, family offices and wealth management professionals to discuss opportunities and priorities shaping the next phase of growth for the sector.
— IANS
Reader Comments
Good to see SEBI taking PMS seriously. But let's be honest—many PMS have underperformed compared to simple index funds over the long run. The "personalised" pitch sounds fancy, but what matters is net returns after expenses. Hope the new framework addresses that.
As someone who's been in PMS for 5 years, I must say the industry has changed a lot. Transparency is still a work in progress though. I hope SEBI's push for standardization means we'll get better disclosure on what managers are actually doing with our money. Not just pretty quarterly reports.
Brilliant! The Indian economy is on fire and PMS is going to be the next big thing 🔥 But SEBI needs to be strict—we've seen too many cases of mis-selling and hidden charges. Remember those NFOs that promised the moon but delivered nothing? Let's not repeat that with PMS!
Tier-2 and Tier-3 markets? Finally! My parents in Mysore have been asking about wealth management options beyond FDs and real estate. PMS could be great for them, but only if the advisors explain things properly in simple language, not jargon-filled PDFs. Investor awareness is key.
"Inflection point" is right. With AI and data analytics, PMS managers can do so much more now. But at the same time, we need to protect investors from flashy marketing. Remember Harshad Mehta? India's markets have come a long way since then, but caution is always needed. Let's hope SEBI's framework strikes the right balance.
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