Sebi doubles PMS investment size to Rs 50 lakh, sets 31 days deadline for default disclosure
In a bid to enhance corporate governance, the capital markets regulator extended the Business Responsibility Report (BRR) requirement to top 1,000 companies, from 500 presently
- Nov 20, 2019,
- Updated Nov 20, 2019 7:39 PM IST
Securities and Exchange Board of India (SEBI) on Wednesday doubled the minimum investment limit for clients of portfolio management services (PMS) to Rs 50 lakh. Currently, the minimum ticket size for investing in PMS is Rs 25 lakh.
"Existing investments of clients can continue till the end date of the PMS agreement or as specified by the board," SEBI said in a press release.
The market regulator also increased the net worth requirement for PMS to Rs 5 crore from Rs 2 crore earlier, giving the existing portfolio managers 36 months to meet the enhanced requirement.
The latest move can have far-reaching ramifications on portfolio management schemes as it may restrict the entry of dubious operators in the business and curb mis-selling.
"Hiking the investment limit for PMS from Rs 25 lakh to Rs 50 lakh is a bit restrictive. Many potential investors are likely to be denied the benefits of PMS," said V K Vijaykumar, Chief Investment Strategist at Geojit Financial Services.
Securities and Exchange Board of India (SEBI) on Wednesday doubled the minimum investment limit for clients of portfolio management services (PMS) to Rs 50 lakh. Currently, the minimum ticket size for investing in PMS is Rs 25 lakh.
"Existing investments of clients can continue till the end date of the PMS agreement or as specified by the board," SEBI said in a press release.
The market regulator also increased the net worth requirement for PMS to Rs 5 crore from Rs 2 crore earlier, giving the existing portfolio managers 36 months to meet the enhanced requirement.
The latest move can have far-reaching ramifications on portfolio management schemes as it may restrict the entry of dubious operators in the business and curb mis-selling.
"Hiking the investment limit for PMS from Rs 25 lakh to Rs 50 lakh is a bit restrictive. Many potential investors are likely to be denied the benefits of PMS," said V K Vijaykumar, Chief Investment Strategist at Geojit Financial Services.