Facilitating collective oversight of distributors for Portfolio Management Services (PMS) through APMI
Summary
SEBI mandates that distributors of Portfolio Management Services must obtain registration with the Association of Portfolio Managers in India (APMI). Portfolio Managers are required to ensure their distributors hold this APMI registration according to criteria set by the association. The circular aims to facilitate collective industry-level oversight and simplify compliance for PMS distributors.
Text
Regulation 23 (11) of SEBI (Portfolio Managers) Regulations, 2020 requires portfolio managers to ensure distributors comply with SEBI regulations and circulars.
Portfolio Managers must ensure distributors abide by the Code of Conduct specified in Annexure 2B to the Master Circular dated March 20, 2023.
Any person or entity involved in distributing portfolio management services shall obtain registration with APMI.
Portfolio Managers shall ensure that any person or entity engaged in the distribution of its services has obtained registration with APMI, in accordance with the criteria laid down by APMI.
This circular shall come into effect from January 01, 2025.
APMI shall issue the criteria for registration of distributors by July 01, 2024.
This circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with Regulation 43 of SEBI (Portfolio Managers) Regulations, 2020.
Source: SecMarx — Facilitating collective oversight of distributors for Portfolio Management Services (PMS) through APMI. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.