Mumbai, June 11: India’s Portfolio Management Services (PMS) industry, now valued at approximately Rs 42 lakh crore, is at a crucial turning point, according to the Securities and Exchange Board of India (SEBI).
Market regulator SEBI noted that the rapid expansion of the PMS segment reflects rising investor interest in professionally managed, customised investment solutions aimed at long-term wealth creation.
The industry’s growth has been supported by increasing financial awareness, higher participation from high-net-worth individuals, and a growing preference for tailored investment strategies over traditional products. SEBI observed that this evolution marks a shift towards more sophisticated and diversified investment behaviour among Indian investors.
At the same time, the regulator highlighted that the sector is entering a “defining inflection point,” where strong growth must be balanced with robust risk management, transparency, and investor protection. Strengthening disclosures, improving governance standards, and ensuring consistent performance reporting were identified as key priorities going forward.
Industry experts believe the PMS segment is likely to expand further as India’s wealth base grows and investors seek more personalised portfolio solutions amid changing market conditions. However, they also caution that sustained growth will depend on maintaining high regulatory standards and investor trust.
SEBI reiterated its commitment to supporting a well-regulated ecosystem that encourages innovation while safeguarding investor interests, ensuring that the PMS industry continues to develop in a structured and transparent manner.
The statement underscores the regulator’s focus on strengthening India’s capital markets as they evolve in scale and sophistication.