1. Regulatory Reporting Framework
Think of SEBI as the traffic police of India’s financial highways. They don’t drive your car, but they make sure the rules are clear, fair, and enforced so that no investor is taken for a ride.SEBI Guidelines and RequirementsPortfolio Managers are required to send clients quarterly reports that include portfolio holdings, transactions, fees, and performance against benchmarks. This ensures investors always know where their money is and how it’s working for them.Mandatory DisclosuresEvery rupee matters. That’s why SEBI insists that PMS providers disclose all fees and expenses upfront management fees, performance fees, brokerage, custodian charges, even GST. No hidden surprises.Audit RequirementsPMS providers must undergo independent audits, where third-party auditors verify whether the reports and practices are fair, accurate, and transparent. This adds an extra layer of trust.Investor Protection AngleThese frameworks exist to protect investors from mis-selling, overcharging, or misreporting. If there’s ever a dispute, SEBI’s framework ensures accountability.Pro Tip (for readers): Always cross-check your PMS reports with SEBI’s mandated format. If your report is missing fee breakdowns, risk metrics, or benchmark comparisons, that’s a red flag.This regulatory backbone ensures that when you read your PMS report, you’re not just looking at numbers you’re looking at verified, compliant numbers.
