Portfolio Management Service
Aspiring portfolio managers can leverage our end-to-end solutions to establish and operate Portfolio Management Services, from SEBI registration and structuring to operational setup and ongoing compliance.
Introduction & Regulatory Background
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A Portfolio Manager 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.
The SEBI (Portfolio Managers) Regulations, 2020 regulates Portfolio Managers in India, ensuring market integrity and investor protection.
Entity Requirement: Only a body corporate (LLP / company) can be granted a certificate of registration by SEBI to act as a Portfolio Manager.
Types of Portfolio Management
Discretionary PMS
The portfolio is independently managed by the Portfolio Manager in accordance with the defined investment objective and agreed client mandate.
Non-Discretionary PMS
The Portfolio Manager shall manage client funds in accordance with the directions and mandates provided by the client.
Advisory PMS
The Portfolio Manager’s role is limited to advising clients on investment decisions, without control over client funds or securities.
Eligibility Criteria
Net Worth
Rs. 5 Crore
Minimum requirement as per SEBI regulations.
Infrastructure
Arms length & segregation with other businesses.
Sufficient office space and communication facilities.
Separate dealing room with access control.
Key Personal Requirements
Principal Officer
Leads investment activities
Must have professional qualifications (Finance, Law, Accountancy, Business Management, CFA, or NISM Portfolio Management).
Must have 5 years experience (with 2 years specific to portfolio management/advisory).
Must have passed the NISM XXI-B exam.
Compliance Officer
Mandatory assignment to ensure all activities follow regulatory guidelines.
Additional Staff
At least one employee with 2 years of relevant market experience.
How SecMark Assists
Advising on matters related to entity for SEBI registration, net worth, investment team etc.
Advising on qualification and experience required for getting the licenses.
Assistance in preparation of documents viz. Disclosure document, account opening form, reports to be sent to SEBI, letters to be submitted to SEBI, etc.
Designing policies, procedures and operational processes.
Assistance in applying to SEBI for registration.
Responding to queries of SEBI.
Getting certificate of registration.
Assistance in setting up operations.
Providing software for managing PMS operations.
Providing client screening software for customer due diligence.
