Speaking to ETMarkets on the sidelines of the APMI conference in Mumbai, Bhavin Shah, Founder & CIO of Sameeksha Capital and APMI Board Member, outlined a growth roadmap anchored in regulatory reforms, broader investor participation, and enhanced ease of doing business.
Shah emphasised that expanding PMS penetration beyond metros into Tier-2 and Tier-3 cities, attracting affluent investors, family offices, and NRIs, and removing barriers to entry and scale will be crucial in unlocking the industry’s true potential and creating high-skill jobs in line with the Viksit Bharat 2047 vision. Edited Excerpts –
Q) Thank you for speaking to ETMarkets on the sidelines of APMI conference in Mumbai. What are the key objectives APMI is working towards in the current regulatory and market landscape?
A) APMI continues to serve as a structured platform for constructive dialogue between the
PMS industry and the regulator. We have played an instrumental role in shaping regulatory developments that balance investor protection with operational flexibility.
1. Enhancing data-driven policymaking and industry benchmarking through tools like PARAS, which help both regulators and investors make better-informed assessments of PMS operations and performance.
2. Advocating proportionate and practical regulatory approaches, especially for small and mid-sized PMS players such as the successful revamping of the self-certified RE category and introduction of a new small-sized RE category under the CSCRF- Related to the PMS.
3. strengthening industry participation in policymaking by forming expert committees (on digital initiatives, compliance) and gathering feedback across members to present collated industry views to SEBI.
4. Pushing for digital transformation and innovation across the PMS value chain, from client onboarding to reporting and compliance in line with global best practices.
5. Driving thought leadership and education for all stakeholders’ investors, media, intermediaries, and policymakers to support a more informed and confident PMS ecosystem.
Looking ahead, our key objectives include:
PMS is very under penetrated and there is huge scope for expansion of the investor base. Take up initiatives to expand the PMS investor base
Persist with SEBI to address many long pending issues of barriers to entry, barriers to scale and excessive compliance requirements so that PMS industry can expand from current under 500 members to tens of thousands of members as seen in other large countries and with that create hundreds of thousands of high skill jobs and make India a global powerhouse in portfolio management so as to fulfil Viksit Bharat 2047 vision.
Q) Can you elaborate on the steps APMI is taking to bolster investor confidence in the PMS industry?
A) 1. Investor confidence is the cornerstone of any financial investment, and this remains a top priority for APMI. We play a pivotal role in strengthening trust and transparency across the industry and a significant milestone in this journey is our responsibility as a Designated Body to handle the first level of investor complaints under SEBI’s SCORES platform.
a. This development reinforces our role in ensuring responsive grievance redressal and positions APMI as a key enabler of investor protection within the PMS ecosystem.
2. Another important milestone in building investor confidence has been the launch of the Distributor Registration Portal (DRP), a compliance focused initiative that brings formal recognition, regulatory structure, and accountability to PMS distribution.
a. It ensures that investors receive the right and validated information through their registered distributors, operating within defined compliance parameters. This represents a significant step toward fostering responsible distribution practices and enhancing investor protection.
3. We launched APMI Insights, a thought leadership and data dissemination initiative aimed at building investor confidence by providing validated, reliable information on the evolving PMS landscape.
a. Through research publications, newsletters, and roundtable discussions, this platform helps investors, media, and intermediaries gain a clearer, more informed view of the PMS industry.
4. We are engaging with SEBI on the Accredited Investor framework, aiming to simplify access for sophisticated investors while ensuring risk awareness and responsible onboarding.
5. APMI has issued best practice guides on fee disclosures and client reporting, promoting fair disclosure and improved investor communication.
6. We are also facilitating investor grievance redress by working with our members to build more responsive and transparent complaint resolution processes and a bridge between the regulator and the industry.
Q) With over 20 years of experience in markets, you have seen many market cycles. Tell us, how do you feel about 2025 – we have seen a lot – from earthquakes, wars, tariff wars etc. How are you managing the volatility?
A) Lot of events that threaten to have a sharp negative impact on the market, especially Trump’s tariff actions and the India Pakistan war have taken place and are still in the play. To make it worse, end demand has weakened and has affected corporate earnings.
Yet, we stay focussed on many underlying positives about our economy today: low inflation and potential for further easing of monetary policy, superb fiscal position of the government and hence sufficient dry powder to take actions needed to stimulate the economy, meaningful income tax cut to put more money in pockets of investors, plans by the government to boost infrastructure spend and benign crude.
We have avoided taking any drastic measures based on our overall view of the possibility of stronger economic expansion based on relevant factors we see today. We also recognize that we have relatively low direct exposure to companies affected by Trump tariffs.
Q) What is APMI’s vision for the PMS industry over the next 3–5 years?
A) 1. APMI envisions the Discretionary- Non-EPFO PMS Industry AUM evolving into a Rs.25 lakh crore-plus AUM segment over the next five years, driven by strong participation from affluent investors, family offices, and NRIs.
2. We see PMS becoming a trusted, well-governed investment avenue, supported by consistent disclosures, transparent reporting, and a strong regulatory framework.
3. Over the next few years, we aim to:
Expand PMS penetration across Tier 2 and Tier 3 cities through distributor enablement and investor awareness.
Work extensively with SEBI to transform the 2020 regulation that was a big overhaul to the next version that is far more optimized and enables ease of entry, ease of scale, ease of compliance and ease of operations for the Portfolio Managers. There are many pending proposals with SEBI and APMI hopes to have them implemented
With a very strong investor protection framework in place, it is high time for PMSes to receive flexibility given to institutional investors which includes IPO participation, QIP participation, removal of peak margin requirement, settling of trades on net basis and other related benefits.
Make it easier for investors to evaluate and compare different PMSes, open accounts, move from one PMS to another
Address longstanding demands of investors to reverse arbitrary hikes in minimum required to invest and make it possible for investors to start second and subsequent PMSes with lower minimums.
Through all these efforts, APMI aspires to position India’s PMS industry among the most credible and innovative globally, serving long-term wealth creation needs of sophisticated investors.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of The Economic Times)