Sebi Chief Urges Portfolio Managers to Curb Misleading Claims

Mumbai, Aug 6 (PTI) Portfolio managers need to modernise onboarding, reporting, and client engagement through digital solutions to stay competitive, Sebi chief Tuhin Kanta Pandey said on Wednesday.

Addressing the annual conclave of the Association of Portfolio Managers in India (APMI), the Sebi chief also urged the industry body to curb misleading claims being made by a few registered portfolio managers.

"The PMS (Portfolio Manager Services) industry needs to modernise onboarding, reporting, and client engagement through digital solutions to stay competitive and trusted," the Sebi chief said.

Stating that the PMS industry is at an inflexion point, he said, "You have a powerful position in place, a flexible regulatory framework, active industry engagement through the Association, and a rising pool of informed investors."

The Association and the industry must curb misleading claims being made by a few registered portfolio managers, Pandey said, adding that "such exaggerated performance claims undermine trust and could stall growth of this industry.

He also urged the industry to ensure that clients understand the risk-return trade-offs, the bespoke nature of the mandate, and the advantage of directly owning underlying securities, which benefits that pooled products may not match.