Sebi mulls hiking minimum ticket size for investment in PMS schemes

Minimum ticket size of Rs 2.5 million not adequate to discourage retail investors; 2- or 4-fold increase on the anvil

The Securities and Exchange Board of India (Sebi) is considering doubling or even quadrupling the minimum ticket size for investment in portfolio management services (PMS) schemes.

The regulator is worried about the current investment limit of Rs 2.5 million may be inadequate to prevent retail investors from using this route. Investors without sufficient knowledge of the risks that accompany investment in PMS schemes could end up burning their fingers if there was a sharp correction in Indian equities.

Indeed, several PMS schemes had seen sharp erosion in their portfolios after the recent correction in mid- and small-cap stocks. Despite recent