Thursday , April 18 2024

Now APMI registration will be mandatory for PMS distributors also

Mumbai: Capital markets regulator Securities and Exchange Board of India (SEBI) has now proposed to make registration with the Association of Portfolio Managers in India (APMI) mandatory for PMS distributors as well.

The initiative aims to make this registration mandatory to facilitate the digital onboarding process for clients of portfolio managers and promote ease of doing business for portfolio managers. This mandatory registration has been proposed after the announcement by the Finance Minister in the Budget for the financial year 2023-24 to reduce and simplify compliance costs for participants in the financial sector.

In the consultation paper, SEBI has proposed to make registration with APMI mandatory for portfolio manager services-PMS distributors. This recommendation makes it mandatory for mutual fund distributors in the mutual fund industry to register with the Association of Mutual Funds in India (AMFI) and obtain AMFI Registration Number ARN, hence registration with APMI is now mandatory for PMS distributors.

At present, people engaged in portfolio manager activity and acting as PMS distributors are required to obtain a certificate from the National Institute of Securities Markets (NISM).

Additionally, portfolio managers must ensure that the code of conduct prescribed under the Portfolio Manager Rules is also binding. Highlighting the benefits of making APMI registration mandatory for PMS distributors, SEBI has said that it will enable single filing for compliance and other declarations for PMS distributors, availability of industry data, quick and easy availability to portfolio managers and complaints-complaints. Solution will be available.

Last year, APMI had introduced a distributor registration portal through which individuals can obtain APMI Registration Number (APRN) to sell PMS. Registration is voluntary for existing PMS distributors.