Under SEBI regulations, all investments in a Portfolio Management Service (PMS) are held in a dedicated demat account in your own name, with a SEBI-registered custodian. The PMS provider does not legally own or hold your assets—they simply have a limited Power of Attorney (PoA) to execute trades on your behalf. This ensures that your securities are completely segregated and protected, irrespective of the PMS provider’s financial health.

While the demat account is in your name, SEBI regulations and the PMS agreement restrict you from executing trades directly while the PMS mandate is active. This is designed to protect both the investor and the fund manager—ensuring that the portfolio is managed cohesively and not impacted by unexpected transactions that could disrupt the strategy. That said, you retain full ownership and visibility at all times, and the PMS agreement can be terminated by you at any point. Upon termination, your holdings can either be transferred to another demat account you own or redeemed into your bank account, depending on your preference.

In the unlikely event that the PMS provider were to cease operations, your investments remain completely intact and secure. You would simply request a transfer of the holdings to your personal demat account, and from there, continue managing or reallocating the portfolio as you choose. This structure—designed by SEBI—ensures investor protection, control, and continuity, regardless of any disruption at the PMS provider’s end.