`42 lakh crore PMS industry primed for explosive growth

WEALTH REVOLUTION | Rising affluence drives demand for portfolio strategies

Agencies New Delhi

India's portfolio management services (PMS) industry—which manages assets worth around ₹42 lakh crore and serves more than 2.1 lakh investor accounts—is at a defining inflection point and has the potential to emerge as a major pillar of the country's investment ecosystem, a senior Securities and Exchange Board of India (SEBI) official said on Thursday.

Speaking at the APMI Leadership Conclave 2026, Manoj Kumar, Executive Director, SEBI said the next phase of growth for the PMS industry must be anchored in transparency, strong governance and investor protection.

"The PMS industry in India is at a defining inflection point. As investor aspirations evolve and demand for personalised wealth management solutions continues to grow, the industry has an opportunity to emerge as a significant pillar of India's investment ecosystem," Kumar said.He added that industry-wide standardisation, enhanced data transparency and a stronger distribution ecosystem would be crucial for the sector's sustainable growth. According to Kumar, deeper penetration into Tier-2 and Tier-3 markets, greater investor awareness, responsible distribution practices and collaboration among stakeholders will be critical to building a resilient, trusted and globally competitive PMS industry.

SEBI proposes uniform pricing mechanism for illiquid stocks across exchanges

SEBI on Thursday proposed a new mechanism to prevent the same stock from trading at significantly different prices across exchanges.  The move is aimed at improving price discovery and liquidity, particularly in thinly traded shares. In a consultation paper, SEBI said that when a stock does not trade on one exchange but remains active on another, the inactive exchange should use the active exchange's closing price to determine the next day's pre-open base price and price band.

'SEBI needs more power to preempt crisis'

The Parliamentary Standing Committee on Finance said on Thursday that SEBI needs more powers to preempt crises, with BJP MP and Chairman Bhartruhari Mahtab stressing that a rule-based system is key to making the regulator more accountable under the proposed Securities Market Code, 2025. 

Mahtab said, "One thing which we have to keep in mind is that this is a very swift and fast-developing economy. In that respect, to preempt a crisis, we have to give SEBI more power. So, the board is there. And what type of tribunals can go into all those issues - that is also another aspect which we are looking into."