Sebi mulls standardisation for PMS schemes by setting up industry body

Sebi is doing its bit to ensure the PMS providers adhere to data sanctity, said a source

The Securities and Exchange Board of India (Sebi) plans to create an industry body to draw up best practices for portfolio managers and introduce a template to bring uniformity in the way they market their schemes.

At present, portfolio management service (PMS) providers file offer documents with the capital markets regulator and release quarterly statements to existing clients. However, there is no standardised document for marketing various funds to potential customers and detail investment objectives, past performance, and fund strategies. 

Performance could be depicted by weighted average returns, rolling returns or back-tested returns for newer schemes. Non-discretionary and advisory performance is often