PORTFOLIO

Portfolio Management Service On Commodities
SEBI (SECURITIES AND EXCHANGE BOARD OF INDIA)

SEBI INVESTOR EDUCATION PROGRAMME  (PORTFOLIO MANAGERS)1.      Who is a Portfolio Manager?A portfolio manager is a body corporate who, pursuant to a contract or arrangement 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 the funds of the client.
2.      What is the difference between a discretionary portfolio manager and a non- discretionary portfolio manager?

The discretionary portfolio manager individually and independently manages the funds of each client in accordance with the needs of the client.
The non-discretionary portfolio manager manages the funds in accordance with the directions of the client.

3.      What is the procedure of obtaining registration as a portfolio manager from SEBI?

For registration as a portfolio manager, an applicant is required to pay a non-refundable application fee of Rs.1,00,000/- by way of demand draft drawn in favour of ‘Securities and Exchange Board of India’, payable at Mumbai.

The application in Form A along with additional information (Form A and additional information available on SEBI Website : www.sebi.gov.in.) submitted to the at the below mentioned address

Investment Management Department – Division of Funds- 1
Securities and Exchange Board of India
SEBI Bhavan, 3rd Floor A Wing,
Plot No. C4-A, ‘G’ Block,
Bandra-Kurla Complex,
Bandra (E), Mumbai – 400 051.

4.       What is the capital adequacy requirement of a portfolio manager?

The portfolio manager is required to have a minimum networth of Rs. 2 crore.

5.      Is there any registration fee to be paid by the portfolio managers?

Yes. Every portfolio manager is required to pay Rs. 10 lakhs as registration fees at the time of grant of certificate of registration by SEBI.

6.      How long does the certificate of registration remain valid?

The certificate of registration remains valid for three years. The portfolio manager has to apply for renewal of its registration certificate to SEBI, 3 months before the expiry of the validity of the certificate, if it wishes to continue as a registered portfolio manager.

7.      How much is the renewal fee to be paid by the portfolio manager?

The portfolio manager is required to pay Rs. 5 lakh as renewal fees to SEBI.

8.      Is there any contract between the portfolio manager and its client?

Yes. The portfolio manager, before taking up an assignment of management of FUNDS or portfolio of securities on behalf of the client, enters into an agreement in writing with the client, clearly defining the interse relationship and setting out their mutual rights, liabilities and obligations relating to the management of funds or portfolio of securities, containing the details as specified in Schedule IV of the SEBI (Portfolio Managers) Regulations, 1993

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

SEBI Portfolio Manager Regulations have not prescribed any scale of fee to be charged by the portfolio manager to its clients.

However, the regulations 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 return based fee or a combination of both. The portfolio manager shall take specific prior permission from the client for charging such fees for each activity for which service is rendered by the portfolio manager directly or indirectly (where such service is outsourced).

10. Is there any specified value of FUNDS or securities below which a portfolio manager can’t accept from the client while opening the account for the purpose of rendering portfolio management service to the client?

The portfolio manager is required to accept minimum Rs. 5 lakhs or securities having a minimum worth of Rs. 5 lakhs from the client while opening the account for the purpose of rendering portfolio management service to the client.

Portfolio manager can only INVEST and not borrow on behalf of his clients.
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Declaration : We are an un authorized PMS of  SEBI., But We Undertake from 1 Lahk to 5 Lakhs worth Investment on Commodity Trading by mutual understanding of client  (whether as a discretionary portfolio or non- discretionary portfolio mode)

lot of assurances are given at every nook and corner of this country. There are assurances to double and triple the MONEY in one year but such things don’t count.

Now a days the quality of PMs today is generally quite poor. The top portfolio management services in India might have returned decent amounts to investors but remember that there have been notorious ones as well.

We never give up any abnormal returns commitment..

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