New Delhi: With a view to keep retail investors away from portfolio management schemes (PMS), Sebi on Wednesday decided to raise the minimum investment amount of clients for such schemes to Rs 50 lakh from the earlier Rs 25 lakh.
Besides, it has decided to increase the networth requirement of portfolio managers to Rs 5 crore from 2 crore, Sebi Chairman Ajay Tyagi told reporters after the board meeting.
He further said the existing portfolio managers will have to meet the enhanced requirement within 36 months.
PMS offers investors a range of specialised investment strategies to capitalise on opportunities in the market and made suitable to the needs of individual clients.
The Sebi board has approved amendment the Sebi (Portfolio Managers) Regulations, which will enhance the eligibility criteria and define the role of principal officer clearly.
