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PMS distribution has been gaining traction among the MFD community.
Data released by the Association of Portfolio Managers in India (APMI) shows it has issued over 10,000 APMI Registration Numbers (APRNs).
While SEBI made it mandatory for PMS distributors in May 2024 to obtain (APRN) by January 1, 2025 to sell PMS, APMI has been issuing APRN numbers on a voluntary basis since September 2023.
Rashim Bagga, CEO, APMI told Cafemutual that the APMI Distributor Registration Portal (DRP) was launched by APMI in September 2023. Subsequently, SEBI, through its circular dated May 2, 2024, mandated that all PMS distributors register with APMI and obtain an APRN. Currently, there are approximately 25,000 NISM XXIA Certified professionals - which is an essential prerequisite for APMI registration. As per APMI's latest data, over 10,000 distributors have already been issued an APRN/EUIN.
A majority of registration happened during October-December 2024, said Bagga.
Some key benefits of getting an APRN includes:
· Registration with industry body
· Single point for compliance and declaration
· Access to industry data
· KYC support system
· Access to training support for NISM examination
· Faster grievance redressal
· Updates on guidelines and circulars
One of the major benefits of getting APRN is that MFDs can have uniform nomination against APRN across PMS players. In mutual funds, distributors have to give such a nomination separately.
Another key benefit of PMS distribution is that the trail commission is exclusive of GST.
Currently, the PMS industry manages AUM of Rs.7.41 lakh crore excluding EPFO contribution. Overall, SEBI data shows that the AUM of the PMS industry has increased by 18% from Rs.30.96 lakh crore in November 2024 to Rs.36.64 lakh crore in November 2024.
