{"id":368232,"date":"2026-07-25T18:06:16","date_gmt":"2026-07-25T12:36:16","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=368232"},"modified":"2026-07-25T18:06:16","modified_gmt":"2026-07-25T12:36:16","slug":"portfolio-management-service-pms","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/portfolio-management-service-pms\/","title":{"rendered":"Portfolio Management Service (PMS)"},"content":{"rendered":"<div class=\"content-box-green\">\n<p><strong>News:<\/strong> SEBI has proposed a comprehensive review of the Portfolio Managers Regulations, 2020, to modernize Portfolio Management Services amid rapid industry growth.<\/p>\n<\/div>\n<h2 class=\"red-h2-box\">About Portfolio Management Service (PMS)<\/h2>\n<figure id=\"attachment_368237\" aria-describedby=\"caption-attachment-368237\" style=\"width: 447px\" class=\"wp-caption aligncenter\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\" wp-image-368237\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/07\/Source-TrueData.jpg?resize=447%2C262&#038;ssl=1\" alt=\"Portfolio Management Service (PMS)\" width=\"447\" height=\"262\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/07\/Source-TrueData.jpg?resize=300%2C176&amp;ssl=1 300w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/07\/Source-TrueData.jpg?resize=768%2C452&amp;ssl=1 768w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/07\/Source-TrueData.jpg?w=845&amp;ssl=1 845w\" sizes=\"auto, (max-width: 447px) 100vw, 447px\" \/><figcaption id=\"caption-attachment-368237\" class=\"wp-caption-text\">Source &#8211; TrueData<\/figcaption><\/figure>\n<ul>\n<li><strong>Portfolio Management Service (PMS)<\/strong>\u00a0is a<strong> professional investment service<\/strong> where a <strong>qualified portfolio manager manages a client\u2019s investment portfolio.<\/strong><\/li>\n<li><strong>Registration:<\/strong> PMS providers <strong>must be registered under the SEBI (Portfolio Managers) Regulations, 2020.<\/strong><\/li>\n<li><strong>Minimum Investment:<\/strong> SEBI requires a <strong>minimum investment of \u20b950 lakh per client.<\/strong><\/li>\n<li><strong>Eligible Candidate:<\/strong> PMS is <strong>meant for high net-worth individuals<\/strong> and other eligible entities such as <strong>NRIs, HUFs, and partnership firms<\/strong>, among others, subject to applicable rules.<\/li>\n<li><strong>Types of Portfolio Management Services (PMS):<\/strong> PMS in India is classified into <strong>three primary categories<\/strong> based on the <strong>degree of control and investor involvement:<\/strong>\n<ul>\n<li><strong>Discretionary PMS:<\/strong> The portfolio <strong>manager makes investment decisions on behalf of the investor.<\/strong><\/li>\n<li><strong>Non-Discretionary PMS:<\/strong> The portfolio <strong>manager gives investment advice,<\/strong> but the <strong>investor makes the final investment decisions.<\/strong><\/li>\n<li><strong>Advisory PMS:<\/strong> The portfolio <strong>manager provides advice,<\/strong> and the <strong>investor independently executes the transactions.<\/strong><\/li>\n<\/ul>\n<\/li>\n<li><strong>Key Features of PMS:<\/strong>\n<ul>\n<li><strong>Professional Management:<\/strong> A qualified portfolio manager manages <strong>investments<\/strong> <strong>in equity, debt, and other securities.<\/strong><\/li>\n<li><strong>Customized Portfolio:<\/strong> Investment strategies are <strong>tailored to the investor\u2019s financial goals and risk profile.<\/strong><\/li>\n<li><strong>Direct Ownership:<\/strong> <strong>Investors directly own the securities held in their portfolio.<\/strong><\/li>\n<li><strong>Transparency:<\/strong> PMS <strong>providers regularly update<\/strong> investors with performance reports, fees, and risk disclosures.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 class=\"yellow-h2-box\">SEBI\u2019s Proposals for PMS<\/h2>\n<ul>\n<li><strong>Wider Investment Options:<\/strong> Portfolio managers <strong>may invest in overseas securities, to-be-listed securities, and limited unlisted debt securities.<\/strong>\n<ul>\n<li>It has also proposed allowing <strong>discretionary portfolio managers to invest up to 10% of a client\u2019s assets under management (AUM)<\/strong> in investment-grade unlisted debt securities.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Mutual Fund-Only Category:<\/strong> A <strong>separate MF-PMS category<\/strong> has been proposed with <strong>lower investment and net worth requirements.<\/strong>\n<ul>\n<li>It has proposed reducing the <strong>minimum client investment from \u20b950 lakh to \u20b925 lakh<\/strong> and the <strong>minimum net worth requirement for applicants from \u20b95 crore to \u20b92 crore.<\/strong><\/li>\n<\/ul>\n<\/li>\n<li><strong>Operational Flexibility:<\/strong> SEBI has proposed greater <strong>flexibility in using derivatives for hedging and investment strategies, with exposure allowed up to 1.25 times the client\u2019s AUM.<\/strong><\/li>\n<li><strong>Lower Compliance Burden:<\/strong> Smaller firms managing<strong> assets below \u20b9100 crore may not need a separate dealing room.<\/strong><\/li>\n<\/ul>\n<h2 class=\"yellow-h2-box\">Potential Impacts on Investors<\/h2>\n<ul>\n<li><strong>Greater Investment Choice: <\/strong>Investors may <strong>receive broader and more diversified investment opportunities.<\/strong><\/li>\n<li><strong>Improved Flexibility:<\/strong> The proposals may <strong>provide more customized portfolio management<\/strong> while <strong>maintaining investor protection.<\/strong><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News: SEBI has proposed a comprehensive review of the Portfolio Managers Regulations, 2020, to modernize Portfolio Management Services amid rapid industry growth. About Portfolio Management Service (PMS) Portfolio Management Service (PMS)\u00a0is a professional investment service where a qualified portfolio manager manages a client\u2019s investment portfolio. Registration: PMS providers must be registered under the SEBI (Portfolio&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/portfolio-management-service-pms\/\">Continue reading <span class=\"screen-reader-text\">Portfolio Management Service (PMS)<\/span><\/a><\/p>\n","protected":false},"author":10401,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,12039],"tags":[11872],"class_list":["post-368232","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-knolls","tag-9pm-daily-factly","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/368232","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10401"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=368232"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/368232\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=368232"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=368232"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=368232"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}