Securities and Exchange Board of India (SEBI) Chairperson, Madhabi Puri Buch, emphasised the importance of trust in the financial markets during her address at the 2024 APMI conference. Buch highlighted that trust from investors retail investors, institutions, and foreign investors - is essential for fostering market growth.

She commended the Association of Portfolio Managers in India (APMI) for its role in bringing stakeholders together. Buch underscored the value of industry associations in fostering co-creation and crafting regulations based on practical feedback.

While acknowledging the challenges faced by other markets globally, Buch highlighted India's unique position of experiencing growth. She stressed the need for this growth to be built on a strong foundation of stability, regulation, and trust.

Collaboration is Key

Buch underscored the markets regulator's commitment to maintaining a hierarchy of regulations that balances flexibility with necessary oversight across asset classes. She advocated for a collaborative approach between SEBI and industry players. She praised initiatives aimed at reducing costs and enhancing compliance through collective efforts. She quoted AMFI, the mutual fund body, as an example, in their effort to create mutual fund awareness campaigns (Mutual Funds Sahi Hai). 

Buch urged PMS players to actively participate and collaborate with APMI fostering a collaborative environment for the growth and stability of the industry.

Focus on trust in the PMS industry

Portfolio Management Services (PMS), catering to high-net-worth individuals and institutions, are witnessing increasing popularity. Buch addressed the need to identify and report "mischief" within the industry at an early stage. “The industry players know better than others what mischief is going on and so the industry must report the instances so that the regulator can take early action," she said. 

Buch further clarified the distinction between fraud and "mischief."  "Mischief" involves exploiting loopholes, while fraud is a deliberate act harming investors for personal gain.

She emphasised the industry's unique understanding of such practices and urged them to report them to SEBI for timely intervention. 

This was the summary of Buch's speech presented at the APMI conference held on 4 July 2024.