New Delhi: Markets regulator Sebi on Thursday decided to promote collective oversight of PMS distributors by making registration with the Association of Portfolio Managers in India mandatory for them. The new directive would come into effect from January 1, 2025, and APMI would issue the criteria for registration of distributors by July 1, this year, Sebi said.
“In order to facilitate collective oversight of PMS (Portfolio Manager Services) distributors at the industry level, it has been decided that any person or entity involved in the distribution of portfolio management services shall obtain registration with APMI,” the regulator said.
Portfolio Managers have been asked to ensure that any person or entity engaged in the distribution of its services has obtained registration with APMI, in accordance with the criteria laid down by APMI.
Currently, persons engaged by a portfolio manager to act as a distributor of the PMS are required to obtain certification from the NISM.
Further, portfolio managers are required to ensure that distributors abide by the Code of Conduct specified under portfolio managers’ rules.
The mandatory registration with APMI would help in providing single filing for compliance and other declarations for PMS distributors, provide access to industry data, offer easy as well as faster access to portfolio managers, and faster grievance redressal.