A portfolio manager is a body corporate, which, pursuant to a contract with a client, advises or directs or undertakes on behalf of the client (whether as a discretionary portfolio manager or otherwise) the management or administration of a portfolio of securities or goods or funds of the client.

In discretionary portfolio management service, the portfolio manager individually and independently manages the funds and securities of each client in accordance with the needs of the client. Under the non-discretionary portfolio management service, the portfolio manager manages the funds in accordance with the directions of the client.

As per regulations governing Portfolio Management Services in India, returns cannot be guaranteeFor obtaining registration as a portfolio manager, an applicant is required to make an online application through the SEBI Intermediaries Portal along with a non-refundable application fee of INR1,00,000/- by way of direct credit in the bank account of SEBI through NEFT/RTGS/IMPS or any other mode allowed by RBI. Alternatively, the application fee can also be paid by way of demand draft drawn in favor of ‘Securities and Exchange Board of India’, payable at Mumbai or at the place where respective regional office is located. Any applicant desirous of seeking registration as a Portfolio Manager under PMS Regulations shall file their applications in Form A on the online system at https://siportal.sebi.gov.in

The portfolio manager is required to have a minimum networth of INR 5 crore.

SEBI (Portfolio Managers) Regulations, 2020 provide that the portfolio manager shall charge a fee as per the agreement with the client for rendering portfolio management services. The fee so charged may be a fixed amount or a performance-based fee or a combination of both. However, no upfront fees shall be charged by the portfolio manager directly or indirectly to the clients.The agreement between the portfolio manager and the client shall, inter-alia, also include the quantum and the manner of fees payable by the client for each activity for which service is rendered by the portfolio manager directly or indirectly.

Documents required: DemUnder Discretionary Portfolio Management Service (DPMS), Portfolio Managers shall invest funds of his clients in the securities listed or traded on a recognized stock exchange, money market instruments, units of Mutual Funds through direct plan and other securities as specified by Board from time to time. Under Non-Discretionary Portfolio Management Service (NDPMS), Portfolio Managers may invest up to 25% of the AUM of a client in unlisted securities, in addition to the securities permitted for discretionary portfolio management. “Unlisted securities” for investment by Portfolio Managers shall include units of Alternative Investment Funds (AIFs), Real Estate Investment Trusts (REITs), Infrastructure Investment Trusts (InvITs), debt securities, shares, warrants, etc. which are not listed on any recognized stock exchanges in India.at & PMS Account opening form and the risk disclosure. Address proof/Identity proof /Pan card copy/Bank statements.

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