Sebi likely to tighten regulatory framework for portfolio managers

Working group looks at improving disclosure standards, proposes scrapping of hurdle-rate for performance fee

The Securities and Exchange Board of India (Sebi) has received a string of recommendations from its working group on tightening the regulatory framework for the portfolio management service (PMS) industry.
 
One of the proposals pertains to increasing net worth requirement of PMS players to Rs 50 million.
 
Some of the other proposals involve improving the reporting disclosures, high exit-loads in PMS products and improving the overall industry standards.
 
The working group commissioned by the Sebi said higher net worth requirement would deter non-serious players while seeking registration and also put pressure on the fringe players. It observed