Reaction over SEBI’s announcement to increase in minimum investment limit by clients in PMS to Rs.50 lakh from Rs.25 lakh earlier


Securities and Exchange Board of India (SEBI) has announced the increase in minimum investment limit by clients in a portfolio management service (PMS) to Rs.50 lakh from Rs.25 lakh earlier.
Reacting over the same, Sushant Bhansali, CEO, Ambit Asset Management, said, “We welcome SEBI's proposals, as they will immensely help both the Asset Management industry as well as investors. The ticket size increase should result in additional AUM from first time investors, as we expect very few investors to not consider PMS funds due to the limit enhancement. Investment avenues such as mutual funds and advisory platforms continue to be available for the INR 25 to 50 lac bracket investors. The other measures announced will improve transparency and build faith in the investing space. The net worth increase might reduce the turnover from fund management teams to start their own ventures, thereby enhancing stability for investors and investment managers.”
Meanwhile, the Indian market was cheering and celebrating the trade on November 20 as the BSE Sensex rallied more than 300 points to hit a fresh record high of 40,816. The Nifty50 broke above its crucial resistance level of 12,000 and aiming to surpass its record high of 12,103. Adding to the celebration, the market guru Mr.Sanjiv Bhasin, Director, IIFL Securities shares his thoughts on the same. He said, “We think new highs just a matter of days. Now, we expect broader markets to outperform. Markets usually run ahead of macros and price future growth. There are three positive indicators for growth – reduction in corporate tax rate, proposed divestment of large public sector units, and a possible resolution of the US china trade impasse. Therefore we see growth coming back in 2020."

Thursday, November 21, 2019