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In a message to the PMS industry, SEBI Chairperson Madhabi Puri Buch said that the good PMS players and the Association of Portfolio Managers in India (APMI) should come forward and highlight mischief happening in the industry (if any) to establish trust of investors.
The chairperson was speaking at the APMI conference held today in Mumbai.
Buch believes that such an effort is in the self-interest of the PMS industry and also help the regulator to act proactively against the wrong doers.
The SEBI Chairperson said that if trust is eroded, the entire ecosystem suffers and the regulator has no other option to come down heavily on it, which can affect the entire industry.
Buch said that mischief is basically playing in the edges or benefiting from grey areas. And fraud is a question of intent. In her experience, the industry players can easily identify such frauds and knows about all these things better than anyone else.
Further, Buch said that the PMS should collaborate and work together to make life easier for PMS players. Giving the example of AMFI, she said that AMFI has been working towards setting up systems and processes that can check instances of front running in mutual funds. And to implement this, AMFI has been negotiating costs with technology players. This will help the entire MF industry including smaller players to avail cost effective solution to deal with this compliance. Similarly, the PMS industry can reduce costs on compliance and other business aspects through collaborative efforts.
Buch also urged PMS players to become member of the APMI.