A replacement for PMSs?

As most people interested in mutual funds would have heard by now, market regulator SEBI has published a proposal to launch a new investment product. The SEBI document is a consultation paper that invites public comments and pitches this product as something that's a halfway house between Portfolio Management Services (PMS) and mutual funds. SEBI's exact language is that an "...opportunity of a New Asset Class has emerged between Mutual Funds and PMS in terms of flexibility in portfolio construction." The paper doesn't have a name for this new product and, in fact, asks the public to suggest a name. I suggest that this should be called PMS, and the product that now purports to be a PMS should be shut down. That sounds like a joke but I'm sort of serious. Since this new product is supposed to be between mutual funds and PMSs, one should try to understand it by contrasting it with those two. If you compare it to existing mutual funds, they are essentially the same, with some adjustments to various limits. However, if you compare it to PMSs, it's a vast improvement. The new product eliminates the two huge negative points of PMSs: t