The Hindu Business Line : PMS business is hotting up

THE PMS (portfolio management service) scenario is hotting up in the country with SEBI granting registrations to a clutch of new players that propose to enter the business.

HDFC Securities, Refco-Sify Securities, India Infoline Securities, Bellwether Capital, and Principal Asset Management have all secured registrations effective from April 1, adding strength to what is already a growing list of names. These companies all have an objective in common: Persuade high net worth individuals (HNIs) to opt for customised portfolio management solutions.

What seems to be driving these outfits to the service is the possibility of garnering greater inflows from their HNI clients, say sources aware of the developments. "Going by trends, I have a feeling that the PMS business will grow rapidly in future," said Mr Rajat Jain, Chief Investment Officer at Principal Mutual Fund, for whom April 1 is the date of registration.

Ms Sandeepa Arora, of India Infoline, said the company's application to the regulator, made last year, has been cleared recently. "We hope to enter the business in due course and are in the process of working out our strategy," she added.

According to sources, a section of the market has been talking about the possibility of devising `retail PMS' products, that is, ones that are based on easier entry norms. This is already in existence in a loose way as some investment houses allow investors to come in with relatively modest amounts like Rs 10 lakh.

SEBI, to which a number of applications have been sent in recent times, has lately turned quite active in granting approvals, it is pointed out. The current year itself has seen registrations going to such well-known companies as ASK Raymond James, Securities Trading Corporation of India and SBI Funds Management.

Also featuring in the current list of registered PMS providers are outfits that received permission some years ago. P N Vijay Financial Services and Parag Parikh Financial Services, for instance, had secured it in 2001. It may be mentioned here that the licence holders include a group of fund houses as well. These comprise, inter alia, Prudential ICICI, Franklin Templeton and Birla Sun Life. UTI Asset Management is a relatively late entrant here, having received approval effective February.