In a standard discretionary PMS, where investors are supposed to replicate a model portfolio, an investor is not in a position to influence the manager. But in customised portfolios, or in non-discretionary schemes, an investor may direct the stocks that portfolio holds. Unlike the more granular AML framework for banks and larger pooled vehicles like mutual funds, there is no uniform policy for the PMS industry. "Earlier, PMS certificates were renewed every three years and at the time of renewal, the regulator used to look into the books. A few months before that Sebi had asked all PMS firms to share the quantum of various securities bought by different kinds of clients.

Source: Economic Times March 06, 2023 07:00 UTC