Understanding Portfolio Management Services and Custodians' Role
Portfolio Management Services (PMS) offer tailored investment solutions for high-net-worth individuals in India, focusing on customized strategies across equities, bonds, and alternatives. Unlike mutual funds, PMS provides individual asset ownership with discretionary or advisory management.
Portfolio Management Services rely on custodians—SEBI-registered entities that safeguard client securities and cash in segregated accounts, ensuring trade settlements, record-keeping, and corporate action processing. Under SEBI's 2020 regulations, custodians enforce compliance, independent audits, and transparency, mitigating risks like errors or conflicts. They complement portfolio managers by prioritizing security, fostering investor trust through reconciliations and reports. As PMS grows, custodians evolve with AI surveillance and blockchain, enhancing efficiency and accountability in wealth management.
https://capitaledge.in/blog/wh....at-are-custodians-in
