Frequently Asked Questions

Who is a Portfolio Manager?

What is the difference between discretionary portfolio management service and non-discretionary portfolio management service?

What is the procedure of making an application for obtaining registration as a portfolio manager from SEBI?

What is the minimum Net worth requirement of a portfolio manager?

What fees can a portfolio manager charge from its clients for the services rendered by him?

What are the various securities in which a Portfolio Manager may invest clients’ funds?

Whether the funds of clients availing discretionary PMS may be invested in unlisted bonds, which are traded over the counter but settled and reported to the Stock Exchanges?

An existing client of Non-Discretionary PMS, who has already invested in certain unlisted securities, wants to subscribe to rights issue of such unlisted securities, which may result in breach of the 25% limit. Is this permitted?

What is the minimum value of funds or securities that can be accepted by the portfolio manager from the client while opening the PMS account?

Clients on-boarded by the Portfolio Manager prior to January 21, 2020 were required to bring in minimum of INR 25 Lacs as their initial investment. What is the minimum amount that may be further invested (top-up) by such clients on or after January 21, 2020?

Is Partial withdrawal of Portfolio permitted, for the existing clients of Portfolio Managers?

Is Partial withdrawal of Portfolio permitted, for the existing client of Portfolio Managers?

Is the client required to top up his account if the portfolio value falls below the minimum investment amount as provided in the SEBI (Portfolio Managers) Regulations, 2020 as a result of valuation of portfolio?

How are the limits on transactions executed through associates of Portfolio Managers applicable?

Is there any restriction on the number of non-associates through which transactions stated in the previous question may be executed?

On what basis is the performance of the portfolio manager calculated?

How is TWRR calculated for the purpose of calculating performance of the portfolio manager?

How will the performance fee be calculated considering the high watermark principle?

What kind of reports can the client expect from the portfolio manager?

What is the disclosure mechanism of the portfolio managers to their clients?

Does SEBI approve any of the services offered by portfolio managers?

Does SEBI approve the disclosure document of the portfolio manager?

What are the rules governing services of a Portfolio Manager?

Can a Portfolio Manager impose a lock-in on the investor?

Can a Portfolio Manager offer indicative or guaranteed returns?