The Securities and Exchange Board of India (Sebi) recently came up with a set of proposals to make portfolio management services (PMS) more transparent, standardise the offerings and make them more investor-friendly.
While some significant changes have been recommended, the committee has partially touched upon the fee structure, a problematic area for investors to understand.
A PMS can have multiple fee structures which include a fund management fee, profit sharing, and so on. There is no cap on any fee a PMS charges its clients.
“Due to an increase in compe.....