TOPIC 45: QUICK REFERENCE TO “Portfolio Manager”

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Quick Reference to " Portfolio Manager " :-
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Points:-
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1. Simply, Portfolio Manager means a person registered with SEBI who directs or advises or manages the funds of the client.
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2. The Non- Refundable fees of ₹ 1 lakh is required to be Paid by the applicant as a Application fees paid to SEBI.
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3. The Registration fees should be paid by Demand Draft in favor of SEBI. It's ₹ 10 lakh.
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4. The Registration Certificate is valid for 3 years . Renewal fees - 5 lakh ₹.
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5. The Minimum networth of Portfolio Manager should be ₹ 2 Crore as a Capital Adequacy.
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6. There must be Contract between Portfolio Manager and Client.
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7. The Portfolio Manager can be Discretionary or Non- Discretionary.
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8. The Discretionary Portfolio Manager Independently manages the Funds of each client.
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9. The Non-Discretionary Portfolio Manager manages funds as per the directions provided by Client.
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10. The Portfolio Manager is required to Accept minimum of ₹ 5 lakhs for providing services to the client.
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11. Portfolio Manager cannot borrow on behalf of Clients. He can only invest that amount.
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12. The Agreement between Portfolio Manager and Client includes rules which are governed by itself.
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13. SEBI does not certify the Adequacy of the Particulars of Disclosure Documents.
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14. The Portfolio Manager cannot offer guaranteed returns to the Clients.
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15. The Portfolio Manager cannot impose a Lock-in Period for the Investment of the Client.
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16. Investor can approach to SEBI for redressal about Complaints. Complaint can be send to Officer of Investor Assistance And Education. SEBI Bhavan , BKC - Mumbai.
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17. The Funds of the Securities can be withdrawn by the Client before Maturity period of Contract.
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Regards
ACA SOURAV BAGARIA