The Indian PMS sector is transitioning from one-time KYC checks to ongoing AML monitoring, adopting shared compliance tools like InPro to enhance risk detection and regulatory adherence.
India’s portfolio management services industry is moving away from a narrow, one-time approach to customer verification and towards continuous anti-money laundering surveillance, as firms respond to the reality that an investor’s risk profile can change long after the first account is opened. The shift is being led by the Association of Portfolio Managers in India, which has adopted InPro as a shared compliance platform for its members, giving firms access to common screening tools, case management and audit records.
According to the Business Today report, the platform is designed to help portfolio managers track fresh risk signals that may emerge after onboarding, including new sanctions designations, changes in client information, newly discovered politically exposed person links and adverse media. It can screen investors against global sanctions lists, Indian debarment lists, PEP databases, regulatory watchlists and adverse news sources, then route possible matches through a maker-checker process so compliance teams can investigate and document the outcome.
The launch took place at APMI’s third annual conference in Mumbai, where Tuhin Kanta Pandey, chairman of the Securities and Exchange Board of India, was present, according to several reports on the event. KFin Technologies developed the platform with APMI, and industry coverage said the system combines screening, monitoring, case handling and audit trails in one place, with the aim of improving consistency in how firms review and escalate alerts.
The change also reflects a broader operational challenge in the PMS business. AML obligations apply to all SEBI-registered portfolio managers, but firms vary widely in their technology budgets and compliance depth. By creating a shared infrastructure, APMI appears to be trying to lower the barrier for smaller and mid-sized managers while also standardising how alerts are checked, resolved and retained for regulatory review. In practice, that means compliance is shifting from a static paperwork exercise to a more continuous process of surveillance and record-keeping.
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