Securities and Exchange Board of India (Sebi) has come up with a proposal where it has asked for an implementation of uniform fee structure for portfolio management services (PMS).

The market regulator was forced to take this step after it received many complaints from the investors saying that they were being overcharged by the PMS providers.

SEBI said that after going through the complaints it has found discrepancies and differences in the following of clauses relating to fees charged.

At present, the fee charged by the PMS providers is asked for when the returns go past a certain level. These are made part of the agreement that the customer is asked to sign and is calculated on the basis of life of the investment.

SEBI has also said that the fees and charges should be on the basis of the actual client funds under management and nothing else. In case a person draws back his funds, all the fees charged should be done on the basis of time after which the withdrawal is done.

Analysts believe that such a step if implemented will be beneficial for the investors. It will also reduce the conflicts that arise between the two sides.