TaxTMI 
TaxTMI 
Guidelines for Portfolio Managers
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....the above, certain changes to the regulatory framework for Portfolio Managers are mandated as under: A. Fees and Charges 3. In partial modification to Cir. /IMD/DF/13/2010 dated October 05, 2010 on Regulation of Fees and Charges, the following is mandated: (i) As provided in Regulation 22 (11) of the PMS Regulations, no upfront fees shall be charged by the Portfolio Managers, either directly or indirectly, to the clients. (ii) Brokerage at actuals shall be charged to clients as expense. (iii) Operating expenses excluding brokerage, over and above the fees charged for Portfolio Management Service, shall not exceed 0.50% per annum of the client's average daily Assets under Management (AUM). (iv) In ca....
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....e information about Investment Approaches offered by Portfolio Managers, shall be uniform across all types of regulatory reporting, client reporting, disclosure document, marketing materials and any such document which refer to services offered by Portfolio Managers. 8. Any description of investment approach provided by Portfolio Managers shall, inter-alia, include: (i) investment objective (ii) description of types of securities e.g. equity or debt, listed or unlisted, convertible instruments, etc. (iii) basis of selection of such types of securities as part of the investment approach (iv) allocation of portfolio across types of securities (v) appropriate benchmark to compare performance and ....
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....e revised format enclosed in Annexure A. 12. Portfolio Managers shall furnish a report in the format provided at Annexure B, to their clients on a quarterly basis. E. Reporting of Performance by Portfolio Managers 13. Further to Regulation 22 (4)(e) of PMS Regulations, it is clarified that the Portfolio Managers shall: (i) Consider all cash holdings and investments in liquid funds, for calculation of performance. (ii) Report performance data net of all fees and all expenses (including taxes). (iii) Clearly disclose any change in investment approach that may impact the performance of client portfolio, in the marketing material. (iv) Ensure that performance reported in all marketing material and we....
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.... have a valid AMFI Registration Number or have cleared NISM-Series-V-A exam. (ii) Pay fees or commission to distributors only on trail-basis. Further, any fees or commission paid shall be only from the fees received by Portfolio Managers. (iii) Ensure that prospective clients are informed about the fees or commission to be earned by the distributors for on-boarding them to specific investment approaches. (iv) Ensure that distributors abide by the Code of Conduct as specified in Annexure C. (v) Have mechanism to independently verify the compliance of its distributors with the Code of Conduct. (vi) Ensure that, within 15 days from the end of every financial year, a self-certification is also receiv....