Portfolio Management Service

SEO Title: Portfolio Management Services (PMS): Meaning, Types, SEBI Regulations and Key Features

Category: Economy | Financial Markets | SEBI

UPSC Notes

Portfolio Management Services (PMS) involve professional management of an investor's portfolio by a registered portfolio manager.

Key Pointers

  • Regulator: SEBI.

  • Governed by SEBI (Portfolio Managers) Regulations, 2020. (Securities and Exchange Board of India)

  • Broad types:

    • Discretionary PMS

    • Non-discretionary PMS

    • Advisory services

  • In discretionary PMS, the portfolio manager makes investment decisions on behalf of the client within the agreed mandate.

  • Securities and funds remain subject to regulatory and contractual arrangements.

  • PMS differs from a mutual fund because PMS generally manages the portfolio of individual clients separately.

  • SEBI undertook a review of the PMS regulatory framework in 2026. (Securities and Exchange Board of India)

Prelims Focus: SEBI → Portfolio Manager → PMS Regulations 2020 → discretionary/non-discretionary.