SEBI says India’s Rs 42 lakh crore PMS industry is growing rapidly, needing stronger governance, transparency, investor protection and deeper market penetration.
New Delhi
India’s portfolio management services (PMS) industry, which oversees assets worth around Rs 42 lakh crore, is at a “defining inflection point” and has the potential to become a major pillar of the country’s investment ecosystem, according to a senior official of the Securities and Exchange Board of India (SEBI).
Speaking at the APMI Leadership Conclave 2026, Securities and Exchange Board of India Executive Director Manoj Kumar said the sector is evolving rapidly as investor demand for personalised wealth management solutions continues to grow. He noted that the industry currently serves more than 2.1 lakh investor accounts and is expanding in both scale and sophistication.
Kumar emphasised that the next phase of growth for the PMS sector must be built on strong governance, transparency and investor protection. He said standardisation across the industry, better data disclosure and a stronger distribution network will be essential to ensure sustainable development and maintain investor trust.
The SEBI official also highlighted the importance of expanding the reach of PMS products beyond major urban centres. He said deeper penetration into Tier-2 and Tier-3 cities, along with increased investor awareness and responsible distribution practices, will play a critical role in building a more inclusive and resilient investment ecosystem.
The conclave was organised by the Association of Portfolio Managers in India (APMI), which represents SEBI-registered portfolio managers. APMI Chairman Biharilal Deora said the PMS industry has become an important component of India’s wealth management landscape, supported by rising investor awareness, demand for customised investment strategies and a stable regulatory framework.
He added that APMI has undertaken around 50 strategic initiatives since 2022, focusing on investor protection, regulatory compliance, digital transformation, professional capacity building and ease of doing business. The discussions at the conclave brought together regulators, portfolio managers, family offices and wealth advisors to assess future opportunities and challenges.
SEBI reiterated that with the right safeguards and innovation, the PMS sector can emerge as a key driver of India’s financial market growth.
