Comments
The Securities and Exchange Board of India has proposed that portfolio management services (PMS) distributors be registered with the industry body Association of Portfolio Managers in India (APMI). APMI represents the portfolio management industry with a view to provide a common interface to regulators, intermediaries and investors.
A working group set up by the regulator has said there are several benefits of mandating a PMS distributor registration number as the industry standard for distributing PMS products.
These include registration with an industry body, single filing for compliance and other declarations, access to industry data and easy and faster access to portfolio managers, faster redressal of complaints and common Know Your Distributor (KYD) requirements for easier registration.
The recommendation is in line with the practice already being followed in the mutual fund industry, wherein mutual funds distributors are required to register with the Association of Mutual Funds in India (AMFI) and obtain an ARN (AMFI Registration Number) for providing distribution services, the consultation paper said.
The other suggestion was for allowing PMS clients to be onboarded using a hand-typed note saying that they have understood the fees and charges, instead of the current practice of insisting for a handwritten note. This is to make digital onboarding easier. This note can be handwritten in cases where the client is being on boarded through physical mode.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.