Portfolio Managers - Facilitating ease in digital on-boarding process for clients and enhancing transparency through disclosures

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.... constituted to review the present regulatory framework under SEBI (Portfolio Managers) Regulations, 2020 and recommend measures to promote ease of doing business for Portfolio Managers. Based on the recommendations of the working group, a public consultation was carried out. 2. Pursuant to the above, the following has been decided: 2.1. Ease in digital on-boarding process for clients of Portfolio Managers 2.1.1. Regulation 22(1) of SEBI (Portfolio Managers) Regulations, 2020, inter-alia states that a portfolio manager shall, before taking up an assignment of management of funds and portfolio on behalf of a client, enter into an agreement in writing with such client that clearly defines the inter-se relationship and set out their mutual ....

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....the high watermark principle, wherever applicable. 2.2.2. The link to access the said tool shall be provided in advance to all new clients, on-boarded on or after October 01, 2024. 2.3. Additional fees disclosures 2.3.1. PMS-client agreement a) In partial modification to the Clause 4.3.1 of Master Circular, whenever performance fees is charged to the client, the annexure for fees and charges to the PMS-client agreement, shall also contain the following additional fee illustrations: * One year and multi-year fee illustrations that cover different scenarios viz. increase in the portfolio value by a certain percentage, decrease in the portfolio value by a certain percentage and when the portfolio value remains unchanged. The said illust....