Portfolio managers must take steps to rectify deficiencies identified in an auditor's report within two months from the report's date. The obligation applies to auditor's reports specified under Regulation 23(4) and requires remediation within the prescribed period as part of the general obligations and responsibilities governing portfolio managers.

Portfolio managers must provide periodic client reports at intervals not exceeding three months and whenever requested. Reports must disclose portfolio composition and value, transactions, beneficial interests, management expenses, foreseeable investment risks, debt-security payment defaults or default-rating downgrades, and distributor commissions attributable to the client. Client-specific reports may be provided through restricted website access. On termination, portfolio managers must give a detailed statement of accounts and settle the account under the contract; clients retain the right to obtain portfolio details.

Portfolio managers must maintain separate client-wise accounts recording funds, investment activity, investment credits, expenses and tax deducted at source. Books require yearly audit by a qualified auditor, with a certificate filed with the Board within six months where specified. Portfolio accounts also require annual independent chartered-accountant audit, and the certificate must be supplied to clients. Clients may appoint a chartered accountant to examine records relating to their transactions, with which the portfolio manager must cooperate.

Portfolio managers must comply with a minimum five-year preservation requirement for all books of account and the other records and documents covered by the relevant chapter. The specified materials must be retained for at least five years as part of the general obligations and responsibilities applicable to portfolio managers. The requirement extends to every book, record, and document falling within the chapter's stated scope.

Portfolio managers are required to furnish the Board with a net worth certificate issued by a chartered accountant whenever specified by the Board, as part of the general obligations and responsibilities applicable to portfolio managers. Submission is contingent on the Board's specification, and each required certificate must verify the portfolio manager's net worth through certification by a chartered accountant.

Portfolio managers must maintain financial statements, auditors' reports, statements of financial position, and other documents specified by the Board. Principal Officers must retain physical or digital records supporting each investment transaction or recommendation, including the data, facts, and opinion underlying the decision. Portfolio managers must disclose the location of maintained records and furnish financial and other required documents for the preceding five accounting years when required by the Board.

Parity in land-acquisition compensation requires a beneficiary that accepted and paid comparable awards for land acquired for the same project to maintain a consistent position. Denying similarly situated landowners equivalent compensation would constitute impermissible discrimination by a State instrumentality. Landowners are entitled to compensation at Rs.105 per square foot, with applicable statutory solatium and interest.

Every portfolio manager managing or administering securities must appoint a custodian in respect of those securities. Portfolio managers providing only advisory services are excluded from this requirement.

Foreign portfolio investors may avail portfolio management services from a portfolio manager under the Securities and Exchange Board of India (Portfolio Managers) Regulations, 2026. Eligibility to use these services is expressly extended to foreign portfolio investors within the framework of general obligations and responsibilities applicable to portfolio managers.

Portfolio managers must act under client agreements and may invest or advise in permitted securities, subject to Board-specified conditions for foreign securities, unlisted securities, and derivatives. Mutual fund investments must be made through direct plans without distribution-related client fees. Client-level prudential limits, credit-rating requirements, and alert-based monitoring apply, while investments in unrated securities of related parties or associates are prohibited. Client funds and securities must be segregated and safeguarded, with controlled aggregation, transfer, and securities-lending arrangements. Clients retain early withdrawal rights on termination, registration action, or portfolio manager bankruptcy or liquidation.

Portfolio managers must act in a fiduciary capacity, segregate each client's securities holdings, and maintain client funds in a separate account with a Scheduled Commercial Bank. They must not derive undue benefit from client assets, borrow funds or securities for clients, or lend client-held securities except where permitted. They must also redress investor grievances within twenty-one calendar days, apply valuation and advertising requirements, report performance uniformly, maintain written asset-management policies, and comply with performance-benchmarking and investor-protection requirements.

Portfolio managers must enter written client agreements before managing funds or portfolios and obtain prior client consent for related-party or associate investments, unless exempted. A certified Disclosure Document must be provided before the agreement, updated annually, made available online, and revised and communicated within fifteen calendar days of material changes. It must disclose fees, risks, conflicts, related-party matters, financial statements and performance. Fees may be fixed, return-based, or combined, but cannot involve assured returns or up-front charges.

Portfolio managers must comply with the Code of Conduct specified in the Second Schedule. Compliance constitutes a mandatory component of the general obligations and responsibilities applicable to every portfolio manager. The requirement applies to all portfolio managers and requires adherence to the conduct standards set out in that Schedule as part of their responsibilities under the portfolio-management regulatory framework.

Co-investment portfolio managers are subject to the Portfolio Managers Regulations mutatis mutandis, except for Regulation 4(a)(iv) and 4(b)(i)-(ii), Regulation 6(4), Regulation 15(2)(c)(ix) and 15(2)(h), Regulation 16(3) and (6), Regulation 17(4)(a)(i), Regulation 19, Regulation 27(1)-(3), and clause 8(i)-(ii) of the Third Schedule. Remaining provisions apply unless the context otherwise requires or application conflicts with this chapter.

Co-investment portfolio managers must ensure that co-investors do not receive investment terms more favourable than those of the Alternative Investment Fund, while exit terms and timing must be identical. Early withdrawal is allowed only to the extent of the fund's corresponding exit. Performance is calculated using the method agreed with the client. All assets under management must be invested in unlisted securities of investee companies in which Category I or Category II Alternative Investment Funds managed by the manager invest.

Eligible fund managers must provide agreed investment or advisory services, make material disclosures, and operate under mutually agreed contracts. They must segregate eligible investment fund assets and accounts from those of other funds and clients, appoint a custodian for Indian investments where required, and keep funds in scheduled commercial banks subject to stated exceptions. They must also maintain specified records, submit monthly reports, comply with anti-money-laundering law, and follow applicable portfolio management and foreign portfolio investment requirements.

New body corporate applicants seeking eligible fund manager registration must fulfil applicable tax eligibility conditions, comply with Chapter II requirements unless otherwise specified, pay prescribed fees, and submit a Board-specified declaration. Existing portfolio managers may manage eligible investment funds after fulfilling the applicable conditions, intimating the Board before commencing the activity, and submitting prescribed declarations.

Regulation 9 applies Chapter III exclusively to eligible fund managers conducting portfolio-management activities for eligible investment funds investing in Indian or foreign securities. For funds investing in Indian securities, the regulations apply mutatis mutandis except for specified provisions and the Third Schedule. For funds investing in foreign securities, applicability is confined to Chapters I, II and III and Regulation 16(2), subject to contextual consistency with Chapter III.

A portfolio manager intending to discontinue portfolio-management activity must apply to the Board for surrender of its certificate of registration. The surrender process must follow the manner and conditions specified by the Board, requiring formal compliance for relinquishing registration.

Continuance of registration for portfolio managers requires payment of the requisite First Schedule fee within the three months preceding expiry of the relevant three-year fee block. Non-payment may result in suspension of the registration certificate by the Board, requiring the portfolio manager immediately to cease all portfolio-management activity for the full period of suspension. Registration can remain in force only through timely payment of the prescribed fee.