Market regulator SEBI has introduced a consultation paper proposing a dedicated registration category for Portfolio Management Services (PMS). This initiative aims to streamline wealth management by focusing exclusively on mutual fund schemes, including ETFs and specialized investment vehicles.
The move is designed to lower the barrier to entry for investors seeking professional management. By carving out an 'MF-only' PMS registration, the regulator hopes to offer a more accessible, cost-effective alternative to traditional, complex portfolio management structures.
Key objectives of the proposal include:
- Formalizing the management of direct-plan mutual fund portfolios.
- Establishing a clear regulatory perimeter for fund-based advisory services.
- Increasing professional oversight for retail portfolios.
This framework is expected to appeal to investors looking for personalized allocations without the overhead associated with individual stock picking. Market participants have until the end of the month to provide feedback on the proposed minimum investment thresholds and compliance requirements.
