SEBI has recently announced increase in the minimum investment limit in PMS (Portfolio Management Scheme). Henceforth the minimum investment amount will be Rs.25 Lakhs as against earlier Rs.5 Lakhs. Lot of brokers provides PMS to their clients with a minimum investment of Rs.5 Lakhs. AS against the Mutual Fund Industry the PMS guidelines are little loose. SEBI has increased this limit to protect the interest of the Investor. This new limit will be applicable on prospective basis. The negative side of this new announcement that many of the Investor will not be able to avail this facility from their Broker as the amount they have to put is now minimum 25 lakhs. SEBI decision is based on the recent trend of Brokers motivating clients to put Money in PMS as against in Mutual Fund. The SEBI Guidelines on PMS was issued long back in the year 1993 and it is not so elaborate and does not protect the Investors interest properly.
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