AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
Master Circular for Portfolio Managers
X X X X Extracts X X X X
X X X X Extracts X X X X
....ines/directions contained in the circulars listed out in the Annexure Z to that Master Circular were rescinded. In addition, with the issuance of this Master Circular, the guidelines/directions contained in the circulars listed out at Sr. Nos.33-36 in the Appendix to this Master Circular, to the extent they relate to the Portfolio Managers, shall stand rescinded. D. With respect to the directions or other guidance issued by SEBI, as specifically applicable to Portfolio Managers, the same shall continue to remain in force in addition to the provisions of any other law for the time being in force. Terms not defined in this Master Circular shall have the same meaning as provided under the relevant Regulations. E. Notwithstanding such rescission, E.1. anything done or any action taken or purported to have been done or taken under the rescinded circulars, including registrations or approvals granted, fees collected, registration suspended or cancelled, any inspection or investigation or enquiry or adjudication commenced or show cause notice issued prior to such rescission, shall be deemed to have been done or taken under the corresponding provisions of this Master Circular; E.2. any....
X X X X Extracts X X X X
X X X X Extracts X X X X
....as to be responded in detail and supported by relevant documents. 1.1.3. The information submitted to SEBI at the time of registration, shall be full and complete in all respects, otherwise it may delay processing of the registration application. 1.1.4. Online process for Fresh Registrations and Updation of Information is given in Annexure 1A of this Master Circular3. 1.2. General Registration Guidelines4 1.2.1. The registration granted to a portfolio manager under Chapter II of the PM Regulations is for the principal office as well as for all the branch offices of the portfolio manager in India. 1 SEBI/RPM CIRCULAR NO.2 (2002-2003) dated January 14, 2003 2 SEBI/HO/MIRSD/MIRSD1/CIR/P/2017/38 dated May 02, 2017 3 Online Process of Portfolio Manager applications dated September 21, 2010 4 RPM circular No.1(93-94) dated October 20, 1993 Page 8 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India 1.2.2. The portfolio manager shall mention its registration number contained in the certificate of registration in a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ities of the same group, under the Intermediaries Regulations. Explanation: For the purposes of this Master Circular, two entities are considered to be in the same group if: 1.3.2.1. the same person, by himself or in combination with relatives, directly or indirectly exercises control over both the entities or, 1.3.2.2. one is an 'associate company' of another and for this purpose, 'associate company' shall mean 'associate company' as defined under sub-section (6) of section 2 of the Companies Act,2013, or Page 10 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India 1.3.2.3. where one entity directly or indirectly exercises 'control' over the other entity and for this purpose, 'control' as defined under the Regulation 2(1)(e) of the PM Regulations shall be referred. 1.4. Co-investment Portfolio Management Services 1.4.1. 6The Co-investment portfolio management services shall be provided in the following manner: 1.4.1.1. A Manager of Category I or Category II Alternative Investment Fund ("AIF") who is also ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....bstituted by SEBI Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/8 dated January 10, 2023. Prior to substitution, clause 1.5.1.4 read as under: "Pursuant to grant of prior approval by SEBI, in order to enable existing investors/ clients to take well informed decision regarding their continuance or otherwise with the changed management, the Portfolio Manager shall inform its existing investors/ clients about the proposed change prior to effecting the same and give an option to exit without any exit load, within a period of not less than 30 calendar days, from the date of such communication." Page 12 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India change prior to effecting the same and give an option to exit without any exit load, within a period of not less than 30 calendar days, from the date of such communication. However, for the clients under co- investment portfolio management services, the Portfolio Manager shall ensure compliance with the second proviso of Regulation 22 (2) of PMS Regulations.] 1.5.1....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ªà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India 1.7. Certificate of associated persons in the Securities Markets 1.7.1. For employees of Portfolio Managers11 1.7.1.1. The associated persons functioning as principal officer of a Portfolio Manager or employee(s) of the Portfolio Manager having decision making authority related to fund management, shall obtain certification from the National Institute of Securities Markets by passing the NISM- Series-XXI-B: Portfolio Managers Certification Examination as mentioned in the communiqué No. NISM/ Certification/Series-XXI-B: Portfolio Managers (PM) Certification/2021/01 dated June 15, 2021 issued by the National Institute of Securities Markets. 1.7.1.2. The Portfolio Managers shall ensure that all such associated persons who are principal officers or employees having decision making authority related to fund management as on the date of this notification obtain the certification by passing the NISM-Series-XXI-B: Portfolio Managers Certification Examination within two years from the date12 of the notification:....
X X X X Extracts X X X X
X X X X Extracts X X X X
....021/48 dated September 7, 2021 Page 16 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India Provided further that an associated person, who being a distributor of the Portfolio Management Services, has obtained any of the following registration/ certification as on the date of this notification a) a valid AMFI Registration Number (ARN) b) NISM Series-V-A exam certification shall be exempted from the requirement of obtaining certification by passing the NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors Certification Examination till the validity of the said registration/ certification. Page 17 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India 2. OPERATING GUIDELINES 2.1. Guidelines for advertisement by Portfolio Managers17 2.1.1. SEBI has formulated a Code of Advertisement governing any advertisements issued by the Po....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rding. 2.3.3. At the time of on-boarding of clients directly, no charges except statutory charges shall be levied. 20 Cir. /IMD/DF-1/16/2012 dated July 16, 2012 21 SEBI/HO/IMD/DF1/CIR/P/2020/26 dated February 13, 2020 Page 19 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India 2.3.4. The above provisions with respect to direct on-boarding of clients shall not be applicable to Co-investment portfolio management services22. 2.4. Supervision of Distributors23 2.4.1. The Portfolio Managers shall: 2.4.1.1. Ensure that any person or entity involved in the distribution of its services is carrying out the distribution activities in compliance with the PM Regulations and circulars issued thereunder from time to time. 2.4.1.2. 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. 2.4.1.3. Ensure that prospective clients are informed about the fees or commission to be earned by the distributors for on-boarding the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ndia 2.6.2. Portfolio Managers shall also put in place a specific policy, in compliance with the PM Regulations and circulars issued thereunder, which shall inter- alia provide for the following: 2.6.2.1. Specific situations (not generic) wherein the orders shall be placed for each client individually or pooled from trading account of Portfolio Manager. 2.6.2.2. Scenarios / situations in which deviation from the allotment of securities as intended at the time of placement of order would be permissible, if at all. 2.6.2.3. Scenarios, wherein, the Portfolio Manager is required to place certain margins / collaterals in order to execute certain transactions, details on how such margins / collaterals shall be segregated / placed from amongst various clients, without affecting the interest of any client. 2.6.2.4. Deviations, if any, shall be on account of exigency only and require prior written approval of the Principal Officer and Compliance officer of the Portfolio Manager with a detailed rationale for such deviation. 2.6.3. The aforesaid policies as mentioned at paragraphs 2.6.1 & 2.6.2 shall be approved by the Board / equivalent body of the Portfolio Manager. 2.7. Fair and equ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.....3.2. The aforesaid system shall inter-alia clearly capture details with respect to pre-order placement allocation as well as final allocation of trades to clients along with instances of deviation, if any, as mentioned at paragraph 2.6.2.4 above. 2.7.4. Portfolio Managers shall maintain audit trail of all activities related to management of funds and securities of clients including order placement, trade execution and allocation. Further, there shall be time stamping with respect to order placement, order execution and trade allocation. 2.8. Cyber Security and Cyber Resilience framework for Portfolio Managers29 2.8.1. With rapid technological advancement in the securities market, there is a greater need for maintaining robust cyber security and to have a cyber- 28 SEBI/HO/IMD/IMD-I DOF1/P/CIR/2022/133 dated September 30, 2022 29 Inserted by SEBI Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/046 dated March 29, 2023 Page 24 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India resilience framework to protect ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....3.1.1. In order to enhance transparency pertaining to debt investments by Portfolio Managers in Corporate Bonds ("CBs") and to increase liquidity on exchange platform, the following shall be followed by Portfolio Managers: 3.1.1.1. On a monthly basis, Portfolio Managers shall undertake at least 10% of their total secondary market trades by value in CBs in that month by placing/seeking quotes through one-to-one (OTO) or one-to-many (OTM) mode on the Request for Quote platform of stock exchanges (RFQ). 3.1.1.2. In order to ensure compliance with the abovementioned 10 percent requirement, Portfolio Managers shall consider the trades executed by value through OTO or OTM mode of RFQ with respect to the total secondary market trades in CBs, during the current month and immediate preceding two months on a rolling basis. 3.1.1.3. All transactions in CBs wherein Portfolio Managers is on both sides of the trade shall be executed through RFQ in OTO mode. However, any transaction entered by Portfolio Managers in CBs in OTM mode which gets executed with another Portfolio Managers, shall be counted in OTM mode. 31 SEBI/HO/IMD/IMD-I/DOF1/P/CIR/2021/678 dated December 09, 2021 Page 27 of 175 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ehalf of his clients. 3.2.4. It may be noted that investment in derivatives shall be only on the terms mutually agreed between the Portfolio Manager and the client through the portfolio management agreement. In the event of the any violation of the terms of the agreement, the Portfolio Manager shall be responsible. 3.2.5. Portfolio Managers are required to provide necessary disclosures in Disclosure Document in terms of the PM Regulations. 3.3. Participation of Portfolio Managers in Commodity Derivatives Market in India33 3.3.1. Portfolio Managers are permitted to participate in Exchange Traded Commodity Derivatives on behalf of their clients. 3.3.2. The participation of Portfolio Managers in the exchange traded commodity derivatives shall be subject to the following: 3.3.2.1. Portfolio Managers shall appoint SEBI registered Custodians before dealing in Exchange Traded Commodity Derivatives. 3.3.2.2. Portfolio Managers may participate in Exchange Traded Commodity Derivatives on behalf of their clients and such participation shall be in 33 SEBI/HO/IMD/DF1/CIR/P/2019/066 dated May 22, 2019 Page 29 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y Derivatives under the heading of 'Commodity Derivatives' in the monthly reports submitted to SEBI. 3.4. Limits on investment in securities of associates/ related parties of Portfolio Managers35 3.4.1. Regulation 24 (3A) of the PM Regulations inter-alia provides that the Portfolio Manager shall ensure compliance with the prudential limits on investment as may be specified by the Board. Accordingly, the Portfolio Managers shall ensure the following: 3.4.2. Portfolio Manager shall invest up to a maximum of 30 percent of their client's portfolio (as a percentage of the client's assets under management) in the securities of their own associates/related parties. Further, the Portfolio Manager shall ensure compliance with the following limits: Limit for investment in single associate/related percentage of client's AUM) Limit for investment across multiple associates/related parties (as percentage of client's AUM) Security party (as 34 Regulation 31 of SEBI (Portfolio Managers) Regulations, 2020 35 SEBI Circular No. SEBI/HO/IMD/IMD-I/DOF1/P/CIR/2022/112 dated August 26, 2022 Page 31 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚तà....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... clients, the aforementioned consent shall be obtained by way of execution of a supplementary agreement with the clients. In cases where the agreements entered with existing clients contain provision for obtaining consent for investments through a specified mode, the same mode can be used for obtaining aforesaid prior consent for investments in the securities of associates/related parties of the Portfolio Manager as well. 3.5.6. Portfolio Manager shall not make any investments in the securities of associates/related parties without the prior consent of the client at the time of on boarding new clients. For existing clients, fresh investments in the securities of associates/related parties of Portfolio Managers can be made only after obtaining consent from the client. 3.5.7. In the event of passive breach of the specified investment limits, (i.e., occurrence of instances not arising out of omission and/or commission of portfolio manager), a rebalancing of the portfolio shall be completed by Portfolio Managers within a period of 90 days from the date of such breach. Notwithstanding the same, the client may give an informed, prior Page 33 of 175 à¤à¤¾à¤°à¤¤à¥€à¤....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed securities of issuers other than associates/related parties of Portfolio Manager. The said investment in unlisted unrated debt and hybrid securities shall be within the maximum specified limit of 25% for investment in unlisted securities under Regulation 24(4) of the PM Regulations. 3.7. Applicability of above provisions: 38 3.7.1. The requirements as specified at paragraphs 3.4, 3.5 & 3.6 above and in Regulations 22 (1A), 22(4) (da) & (db), 24 (3A) to 3(E) of the PM Regulations shall not be applicable for advisory portfolio management services, co-investment portfolio management services and for client categories who in turn manage funds under government mandates and/or are governed under specific Acts of State and/or Parliament. 3.7.2. Notwithstanding the above, for advisory portfolio management services, Portfolio Managers shall make suitable disclosure to the client regarding conflict of interest with respect to investments in the securities of the associates/related parties, while giving advice. The term "associate" for this purpose shall have the same meaning as defined under explanation 38 SEBI Circular No. SEBI/HO/IMD/IMD-I/DOF1/P/CIR/2022/112 dated August 26, 2022 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... be called in question or be open to review at time during the currency of the agreement or any time thereafter except on the ground of malafide, fraud, conflict of interest or gross negligence. 4.3. Disclosure of fees and charges42 4.3.1. To ensure transparency and adequate disclosure regarding fees and charges, the client agreement shall contain a separate annexure which shall list all fees and charges payable to the portfolio manager. The said annexure shall contain details of levy of all applicable charges on a sample portfolio of Rs.50 lacs43 over a period of one year. The fees and charges shall be shown for 3 scenarios viz. when the portfolio value increases by 20%, decreases by 20% or remains unchanged. An illustration of the same is enclosed as Annexure 4A of this Master Circular. 4.3.2. All text and figures in the annexure on fees and charges shall be at least in size 11 font. 4.3.3. New clients shall be required to separately sign the annexure on fees and charges and add in their own handwriting that they have understood the fees/ charges structure. 4.4. Publishing of Investor Charter by Portfolio Managers on their websites44 42 SEBI Cir. /IMD/DF/13/2010 dated Octob....
X X X X Extracts X X X X
X X X X Extracts X X X X
....रतिà¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India 4.5.2.2. [The portfolio managers may select benchmark indices in line with para 4.6A of this Master Circular. Any change in the benchmark indices at a later date shall be recorded and justified with specific reasons thereof. 4.5.2.3. Portfolio Managers have the option to give their management perception on the performance of their schemes.]49 4.5.2.4. The Boards of portfolio managers may review the performance of the funds managed by them for each client separately in their meetings and should take corrective action wherever necessary. They may also compare the performance of the portfolios with benchmarks. 4.5.3. In relation to performance of the portfolio manager, it is also clarified that the Portfolio Managers shall:50 4.5.3.1. Consider all cash holdings and investments in liquid funds, for calculation of performance. deployed and also to give them an objective analysis of the performance of the portfolios being managed by the portfolio managers on discretionary basis in comparison with the rise or fall in....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ion 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. 51 SEBI/HO/IMD/DF1/CIR/P/2020/26 dated February 13, 2020 52 Inserted by SEBI Circular No. SEBI/HO/IMD/IMD-PoD-2/P/CIR/2022/172 dated December 16, 2022 Page 41 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India 4.6.2. Any description of investment approach provided by Portfolio Managers shall, inter alia, include: 4.6.2.1. investment objective 4.6.2.2. description of types of securities e.g. equity or debt, listed or unlisted, convertible instruments, etc. 4.6.2.3. basis of selection of such types of securities as part of the investment approach 4.6.2.4. allocation of portfolio across types of securities 4.6.2.5. appropriate benchmark to compare performance and basis for choice of benchmark 4.6.2.6. indicative tenure or investment horizon 4.6.2.7. ri....
X X X X Extracts X X X X
X X X X Extracts X X X X
....shall be verified as part of the annual audit under the Regulations55. 4.7. Disclosure of details of related party investments by Portfolio Managers 56 4.7.1. Regulations 22 (4) (da) & (db) of the PM Regulations provides that the Portfolio Manager shall disclose in the Disclosure Document the details of its diversification policy and the details of investment of clients' funds by 54 Regulation 30 of the SEBI (Portfolio Managers) Regulations, 2020 55 Regulation 30 of the SEBI (Portfolio Managers) Regulations, 2020 56 SEBI Circular No. SEBI/HO/IMD/IMD-I/DOF1/P/CIR/2022/112 dated August 26, 2022 Page 43 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India the Portfolio Manager in the securities of its related parties or associates. Accordingly, the Portfolio Manager shall ensure compliance with the following: 4.7.2. Disclosure of the details of investment of clients' funds in the securities of associate/related parties in the Disclosure Document under the head "Details of investments in the securities of rela....
X X X X Extracts X X X X
X X X X Extracts X X X X
....¤¤à¤¿ और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India 5.1.5. In terms of the PM Regulations60, Compliance Officer of the portfolio managers shall also be responsible for ensuring compliance with this Master Circular. 5.2. Submission of compliance reports by Portfolio Manager61 5.2.1. With effect from Financial Year 2019-20, Portfolio Managers are required to submit the following information to SEBI:62 5.2.1.1. A certificate from the qualified Chartered Accountant certifying the net- worth as on March 31, every year based on audited account within 6 months from the end of Financial Year. 5.2.1.2. A certificate of compliance with PM Regulations and circulars issued thereunder, duly signed by the Principal Officer, within 60 days of end of each financial year. Further, details of non-compliance along with the corrective actions, if any, duly approved by Board of the Portfolio Manager. 5.2.2. Submission of Corporate Governance Report: 5.2.2.1. Boards of the Portfolio Managers should review the compliance of regulations in their periodical meetings. They should develop a system of getting quarterly rep....
X X X X Extracts X X X X
X X X X Extracts X X X X
....l year. The said report to SEBI shall be certified by the Directors/Partners of the Portfolio Manager or by person(s) authorized by the Board of Directors/Partners of the Portfolio Manager. 5.3.2. Accordingly, Portfolio Managers are required to consider all clients' portfolios managed (i.e. clients of both discretionary and non-discretionary portfolio management services) for the purpose of audit of firm-level performance data. 5.3.3. Standard Terms of Reference by APMI: 5.3.3.1. In order to have uniformity, APMI, in consultation with SEBI, shall specify standardised Terms of Reference ('ToR') for aforesaid audit of firm-level performance data. 5.3.3.2. The standard ToR shall inter-alia include requirement for Portfolio Managers to consider clients' portfolios under all services for the purpose of audit of firm-level performance data. Performance of advisory clients may be excluded only if performance of such clients, either individually or cumulatively, is not reported or published in any marketing material or website. 5.3.3.3. The standard ToR specified by APMI (available on APMI website: link) is applicable with effect from October 01, 2023, and shall be mandatorily followe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r Circular that are covered through the reporting formats, as mentioned in the paragraph 5.4.1 above, are specified in Annexure 5C. 5.4.6. [Any change in the prescribed formats shall be communicated by the Board from time to time. 5.4.7. Portfolio Managers who are exclusively co-investment managers, shall not be required to submit the offsite inspection data. 5.4.8. Portfolio Managers are not required to submit data with respect to funds managed by them for EPFO and other similar government mandates.]64 64 Inserted vide Master Circular for Portfolio Managers dated June 07, 2024 Page 50 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India 5.5. Reporting to clients by Portfolio Managers 5.5.1. Portfolio Managers shall furnish a report in the format provided at Annexure 5D65 of this Master Circular, to their clients on a quarterly basis 66 which inter-alia includes the following67: 5.5.1.1. Details of investment of client's funds in the securities of associates/related parties of the Portfolio Manager. 5.5.1....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... one or more cherry-picked investor(s) However, aggregated performance statistics of all investors in an IA may be used by a Portfolio Manager for aggregated performance reporting. 5.6.4. Portfolio Manager shall disclose relative performance of its investment approach in all the marketing material where performance of the concerned investment approach is being presented. Such disclosure of relative performance shall, at minimum, include the following: 5.6.4.1. Performance relative to the selected benchmark 5.6.4.2. Performance relative to other Portfolio Managers within the selected Strategy Page 52 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India 5.6.5. Verification of all the above performance statistics shall be carried out in the annual audit under the Regulations69. 5.6.6. Portfolio Managers shall also submit the monthly reports to APMI in addition to SEBI within 7 working days from the end of each month. APMI shall make available the monthly reports of the Portfolio Managers on APMI website in an ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 6.1. Regulation of Fees and Charges 6.1.1. The inter se relationship between the portfolio manager and client, mutual rights, liabilities and obligations relating to management of funds or portfolio of securities are required to be specified in the agreement signed between the portfolio manager and the client. The contents of the portfolio manager-client agreement are laid out in the PM Regulations70. 6.1.2. In order to bring about greater uniformity, clarity and transparency with regard to fees and charges, portfolio managers are advised to take the following measures in respect of all client agreements: 6.1.3. Fees and Charges71 72 6.1.3.1. As provided in the PM Regulations73, no upfront fees shall be charged by the Portfolio Managers, either directly or indirectly, to the clients74. 6.1.3.2. Brokerage at actuals shall be charged to clients as expense. 6.1.3.3. 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 AUM. 6.1.3.4. Charges for all transactions in a financial year (Broking, Demat, custody etc.) through self or associates shall be capped at 20% by ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.....60,00,000, rather than on the full return during that year from Rs.55,00,000 to Rs.65,00,000. 6.1.3.7. All fees and charges shall be levied on the actual amount of clients' assets under management. 6.1.3.8. High Water Mark shall be applicable for discretionary and non- discretionary services and not for advisory services. 6.1.3.9. In case of interim contributions/ withdrawals by clients, performance fees may be charged after appropriately adjusting the high water mark on proportionate basis. 6.1.4. Exit Load:76 6.1.4.1. In case client portfolio is redeemed in part or full, the exit load charged shall be as under: 6.1.4.1.1. In the first year of investment, maximum of 3% of the amount redeemed. 6.1.4.1.2. In the second year of investment, maximum of 2% of the amount redeemed. 6.1.4.1.3. In the third year of investment, maximum of 1% of the amount redeemed. 6.1.4.1.4. After a period of three years from the date of investment, no exit load. 76 SEBI/HO/IMD/DF1/CIR/P/2020/26 dated February 13, 2020 Page 57 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोà¤....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e information shall be made available by 07th of the succeeding month. 7.2.2. Further, the Portfolio Managers are advised to display link/option on their websites and mobile apps so as to enable their clients to lodge complaint with them directly. Additionally, link to SEBI Complaints Redress System ("SCORES") website and the link to download the SCORES mobile app may also be provided by the Portfolio Managers on their websites. 81 SEBI Cir. /IMD/DF/13/2010 dated October 5, 2010 82 Regulation 22 read with clause 18 of Schedule IV of the SEBI (Portfolio Managers) Regulations, 2020 83 SEBI/HO/IMD/IMD-II_DOF7/P/CIR/2021/681 dated December 10, 2021 Page 59 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India ANNEXURES 1 Annexure 1A: Online Processing of Portfolio Manager Applications 2Annexure 1A: Online Processing of Portfolio Manager Applications Annexure 2A: Guidelines for Advertisements by Registered Portfolio Managers 3Annexure 2B: Code of Conduct for Distributors of Portfolio Management Services 4Annexure ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ils" through which the applicant has to enter the fee details and save it. i. Once the details relating to fees are entered and saved, it must be adjusted against the outstanding amount as per the instructions given in the "blue question mark" on the top right hand corner of the page. j. Once the fees are adjusted, the fee details must be saved and then submitted, by clicking the "Submit" button in the e-mail, to SEBI for final approval. Page 61 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India Online Process for Updation of Information a. There can be any change in information that a registered Portfolio Managers can undergo during its operations. b. Apart from sending the physical copy of such changes in information to SEBI, the same should be updated on the SEBI Intermediary Portal. c. It can be done by clicking "Updation of Registration" under the tab "Portfolio Manager" given on the SEBI Intermediary Portal. d. All instructions to fill the details under every tab can be accessed by clicking the "Bl....
X X X X Extracts X X X X
X X X X Extracts X X X X
....vertisement is set forth in a clear, concise and understandable manner. Extensive use of technical or legal terminology or complex language and the inclusion of excessive details which may detract the investors should be avoided. 1.6. The advertisement shall not contain information, the accuracy of which is to any extent dependent on assumptions. 1.7. The advertisement shall not contain any promise or guarantee of assured/fixed return to the investors, either directly or indirectly. 1.8. The advertisement shall not compare one Portfolio Manager with another, implicitly or explicitly, unless the comparison is fair and all information relevant to the comparison is included in the advertisement. 2. OBSERVANCE OF CODE OF ADVERTISEMENT 2.1. Every Portfolio Manager shall strictly observe the Code of Advertisement set out in paragraph 1 given above. Any breach of the Code would be construed as breach of Code of conduct set out in Schedule III to the Securities and Exchange Board of India (Portfolio Managers) Regulations, 2020. Page 64 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमà¤....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... Maintain necessary infrastructure to provide support to clients in timely receipt of disclosure document, statement of portfolio and performance, statement of fees, audit report, etc. XV. Maintain confidentiality of clients' details, deals and transactions, which they come to know in their business relationship. xvi. Abstain from making negative statements about other Portfolio Managers or Investment Approaches. Make comparisons, if any, only with the similar and comparable products along with complete facts. xvii. Not indulge in any manipulative, fraudulent or deceptive practices or spread rumours with a view to make personal gain. xviii. Hold valid Certification, as specified by SEBI, at all times. ** Page 66 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India Annexure 2C: Cyber Security and Cyber Resilience framework 1. Cyber-attacks and threats attempt to compromise the Confidentiality, Integrity, and Availability (CIA) of the computer systems, networks, and databases (Confidentiality refers to limi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n the report titled 'Guidelines for Protection of National Critical Information Infrastructure' and subsequent revisions, if any, from time to time. 5. Portfolio Managers should also incorporate best practices from standards such as ISO 27001, ISO 27002, COBIT 5, etc., or their subsequent revisions, if any, from time to time. 6. Portfolio Managers should designate a senior official as Chief Information Security Officer (CISO) whose function would be to assess, identify and reduce cyber security risks, respond to incidents, establish appropriate standards and controls, and direct the establishment and implementation of processes and procedures as per the cyber security and resilience policy approved by the Board or equivalent body of Portfolio Manager. 7. The Board or equivalent body of the Portfolio Manager shall constitute a Technology Committee comprising experts proficient in technology. This Technology Committee should on a half yearly basis review the implementation of the cyber security and cyber resilience policy approved by their Board or equivalent body, and such review should include a review of their current IT and Page 68 of 175 à¤à¤¾à¤°à¤¤à¥€à¤....
X X X X Extracts X X X X
X X X X Extracts X X X X
....(threats and vulnerabilities) that it may face, along with the likelihood of such threats and impact on the business and thereby, deploy controls commensurate to the criticality. 13. Portfolio Managers should also encourage its third-party service providers, if any, such as Custodians, Brokers, Distributors, etc. to have similar standards of Information Security. Protection Access Controls 14. No person by virtue of rank or position should have any intrinsic right to access confidential data, applications, system resources or facilities. 15. Any access to Portfolio Manager's systems, applications, networks, databases, etc., should be for a defined purpose and for a defined period. Portfolio Manager should grant access to IT systems, applications, databases, and networks on a need-to-use basis and based on the principle of least privilege. Such access should be for the period when the access is required and should be authorized using strong authentication mechanisms. 16. Portfolio Manager should implement strong password controls for users' access to systems, applications, networks and databases. Password controls should include a change of password upon first log-on, minimum p....
X X X X Extracts X X X X
X X X X Extracts X X X X
....should be properly supervised by ensuring at the minimum that outsourced staff or visitors are accompanied at all times by authorized employees. 25. Physical access to the critical systems should be revoked immediately if the same is no longer required. 26. Portfolio Managers should ensure that the perimeter of the critical equipment rooms is physically secured and monitored by employing physical, human and procedural controls such as the use of security guards, CCTVs, card access systems, mantraps, bollards, etc. where appropriate. Network Security Management 27. Portfolio Managers should establish baseline standards to facilitate consistent application of security configurations to operating systems, databases, network devices, and enterprise mobile devices within the IT environment. The Portfolio Manager should conduct regular enforcement checks to ensure that the baseline standards are applied uniformly. The checks should be done at least once in a year. Page 72 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hould establish and ensure that the patch management procedures include the identification, categorization and prioritization of security patches. An implementation timeframe for each category of security patches should be established to implement security patches in a timely manner. 38. Portfolio Managers should perform rigorous testing of security patches before deployment into the production environment so as to ensure that the application of patches do not impact other systems. Disposal of systems and storage devices 39. Portfolio Managers should frame suitable policy for disposals of the storage media and systems. The data / information on such devices and systems should Page 74 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India be removed by using methods viz. wiping / cleaning / overwrite, degauss and physical destruction, as applicable. Vulnerability Assessment and Penetration Testing (VAPT) 40. Portfolio Managers shall carry out periodic VAPT, inter-alia, including critical assets and infrastruct....
X X X X Extracts X X X X
X X X X Extracts X X X X
....m to monitor capacity utilization of its critical systems and networks. 45. Suitable alerts should be generated in the event of detection of unauthorized or abnormal system activities, transmission errors or unusual online transactions. Response and Recovery 46. Alerts generated from monitoring and detection systems should be suitably investigated, including impact and forensic analysis of such alerts, in order to determine activities that are to be performed to prevent expansion of such incident of cyber-attack or breach, mitigate its effect and eradicate the incident. 47. The response and recovery plan of the Portfolio Manager should aim at the timely restoration of systems affected by incidents of cyber-attacks or breaches. Page 76 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India Portfolio Managers should have Recovery Time Objective (RTO) and Recovery Point Objective (RPO) not more than 4 hours and 30 minutes, respectively 48. The response plan should define responsibilities and actions to be perfor....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ontents of the program remain current and relevant. Periodic Audit 55. Portfolio Managers shall arrange to have its systems audited on an annual basis by an independent CISA / CISM qualified or CERT-IN empanelled auditor to check compliance with the above areas and shall submit the report to SEBI along with the comments of the Board or equivalent body of Portfolio Manager within three months of the end of the financial year. Vendors or Service Providers 56. Portfolio Managers have outsourced many of their critical activities to different agencies / vendors / service providers. The responsibility, accountability and ownership of those outsourced activities lies primarily with Portfolio Manager. Therefore, Portfolio Manager have to come out with appropriate monitoring mechanism through clearly defined framework to ensure that all the Page 78 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India requirements as specified in this circular is complied with. The periodic report submitted to SEBI should highlight the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e date of such breach. However, the client may give an informed, prior positive consent to the Portfolio Manager for a waiver from the requirement of rebalancing of the portfolio to rectify the passive breach of investment limits. The client may choose not to provide any waiver. 7. Please indicate consent or dissent as under: Limits on investment Consent: Portfolio Manager can invest in the securities of its associates/related parties within the limits agreed upon at paragraph 5 above. Dissent: Portfolio Manager cannot invest in the securities of its associates/related parties. Page 81 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India Waiver from rebalancing of portfolio on passive breach of investment limits Consent: Portfolio Manager need not rebalance the portfolio on passive breach of investment limits. Dissent: Portfolio Manager should rebalance the portfolio on passive breach of investment limits. Signature of the client Page 82 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤....
X X X X Extracts X X X X
X X X X Extracts X X X X
....00 Portfolio performance: Loss of 20% Nature of FeesAmount in Rs.Amount in Rs. Capital Contribution50,00,000 XX40,00,000 2,00,000 Less: Any other fees (please enumerate) Assets under Management50,00,000 10,00,000 Less: Loss on investment during the year @ 20% on assets under management Gross value of the portfolio at the end of the year1,00,000 1,00,000 XX XX Less: Brokerage/DP charges/any other similar charges (e.g. 2% of Rs.50,00,000) Less: Management Fees (if any) (e.g. 2% of Rs.50,00,000) Less: Performance fees (if any) Less: Any other fees (please enumerate) Total charges during the year Net value of the portfolio at the end of the year38,00,000 % change over capital contributed(24.00%) Charges on Portfolio performance: No change Nature of FeesAmount in Rs.Amount in Rs. Capital Contribution50,00,000 Less: Any other fees (please enumerate)XX Assets under Management50,00,000 Page 84 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India Add: Profits/Losses on investment during the year @ 0% on assets under ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lakhs as per the current SEBI Regulations. However, the PMS provider reserves the right to prescribe a higher threshold product-wise or in any other manner at its sole discretion. The PMS provider will ascertain the investor's investment objectives to achieve optimal returns based on his risk profile. Under the Discretionary Portfolio Management service, investment decisions are at the sole discretion of the PMS provider if they are in sync with the investor's investment objectives. Under the Non-Discretionary Portfolio Management service, investment decisions taken at the discretion of the Investor. ii. Investment Advisory Services: - Under these services, the Client is advised on buy/sell decision within the overall profile without any back-office responsibility for trade execution, custody of securities or accounting functions. The PMS provider shall be solely acting as an Advisor to the Client and shall not be responsible for the investment/divestment of securities and/or administrative activities on the client's portfolio. The PMS provider shall act in a fiduciary capacity towards its Client and shall maintain arm's length relationship with its other activities. The PMS prov....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cuments for accuracy and completeness by portfolio manager and allied third party service providers as may be applicable. Opening of PMS account (including demat account, bank account and trading account) for non-resident clients.14 days from receipt of all requisite documents from the client, subject to review of the documents for accuracy and completeness by portfolio manager and allied third party service providers as may be applicable. 4Registration of nominee in PMS account and demat account.Registration of nominee should happen along with account opening, therefore turnaround time should be same as account opening turnaround time. 5Modification of nominee in PMS account and demat account.10 days from receipt of requisite nominee modification form, subject to review of the documents for accuracy and completeness by Page 89 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India Sr. No.Service / ActivityTimeline portfolio manager and allied third party service providers as may be applicable. 6Uploading of PMS a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ould be a part of the account opening form. Page 91 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India Sr. No.Service / ActivityTimeline 19POA taken copy providing to client.Within 3 days of client request. 20Intimation to client about what all transactions can portfolio manager do using PoA.At the time of client signing the agreement; this information should be a part of the account opening form. 21Frequency of providing audited reports to clientsAnnual. 22Explanation of risks involved in investment.At the time of client signing the agreement; this information should be a part of the account opening form. 23Intimation of tenure of portfolio investments.Indicative tenure should be disclosed at the time of client signing the agreement; this information should be a part of the account opening form. 24Intimation clearly providing restrictions imposed by the investor on portfolio manager.Negative list of securities should be taken from the client at the time of client signing the agreement; this information should....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ided in the PMS Disclosure document. c. The grievance redressal and dispute mechanism should be mentioned in the Disclosure Document. d. Investors can approach SEBI for redressal of their complaints. On receipt of complaints, SEBI takes up the matter with the concerned PMS provider and follows up with them. e. Investors may send their complaints to: Office of Investor Assistance and Education, Securities and Exchange Board of India, SEBI Bhavan. Plot No. C4-A, 'G' Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051. E. Expectations from the investors (Responsibilities of investors) 1. Check registration status of the intermediary from SEBI website before availing services. 2. Submission of KYC documents and application form in a timely manner with signatures in appropriate places and with requisite supporting documents. 3. Read carefully terms and conditions of the agreement before signing the same. Page 94 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India 4. Thorough study of the Disclosure Docu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ityPlain DebtStructured DebtDerivativesMutualOthersTotal ListedUnlistedListedUnlistedListedUnlistedEquityCommodityOthersFunds Approach 1 Approach 2 -- Approach 'N' Total C. Funds Inflow/ Outflow InvestmentFunds Inflow/Outflow in the Approach During theFunds Inflow/Outflow in the Approach During the FY ApproachMonth Page 97 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India Inflow during the month (in INR crores)Outflow during the month (in INR crores)Net Inflow (+ve)/ Outflow (-ve) during the month (in INR crores)Inflow during the FY since April 01 to (in INR crores)Outflow during the FY since April 01 to (in INR crores)Net Inflow (+ve)/ Outflow (-ve) during the FY since April 01 to (in INR crores) Approach 1 Approach 2 -- Approach 'N' Total D. Transaction Data Sl. No.ParticularsFigures 1Sales in the month (in INR crores ) 2Purchases in the month (in INR crores ) 3Portfolio Turnover Ratio = (Higher of Purchases or Sales in the month /Average AUM) Note: Average AUM to be computed based on daily average E.....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... INR crores ) 3Portfolio Turnover Ratio = (Higher of Purchases or Sales in the month /Average AUM) Note: Average AUM to be computed based on daily average J. Performance Data AUM (in INR Cr)Returns (%)Portfolio Turnover Ratio 1 month1 year1 month1 year III. Data for Advisory Services K. Break-up of client base of the Portfolio Manager Type of ClientDomestic ClientsForeign Clients PF/ EPFOCorporatesNon-CorporatesNon ResidentsFPIOthersTotal No. of unique Clients as on last day of the month Value of the Assets for which Advisory Services are being given (Amount in INR crores) IV. Data for Co-investment Services L. Break-up of clients of the Portfolio Manager Page 100 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India Type of ClientDomestic ClientsForeign ClientsTotal Clients CorporatesNon- CorporatesCorporatesNon ResidentsOthers No. of unique Clients as on last day of the month Value of the Assets for which Co-investment Services are being given (Amount in INR crores) M. Break-up of assets under manageme....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... CharacterComments 5 STRINGY Maximum length allowed: 20SEBI Reg. Number of Portfolio Manager 6 STRINGY Length allowed: 10PAN of Compliance Officer 7 STRINGY Maximum length allowed: 100Name of Compliance Officer 8 STRINGN Maximum length allowed: 20Principal Officer's NISM Certificate Number 9 DATENYYYY-MM-DDDate of NISM certificate 10STRINGNMaximum length allowed: 20FIU Reg Number 11STRINGNMaximum length allowed: 20Institution code issued by KRA In case of registration with multiple KRA agencies, provide any one KRA agency registration number 12STRINGNMaximum length allowed: 20Institution code issued by CERSAI Mandator y Y Y Y Page 104 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India #TagData TypeMandator y Allowed CharacterComments 13STRINGY Maximum length allowed: 20SEBI SCORES registration number 14STRINGNMaximum length allowed: 500Web link for direct on- boarding of client 15STRINGNMaximum length allowed: 100Name of Front Office Trading System 16STRINGNMaximum length allowed: 100Name of Back Office Ac....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Units in SOA format, BOID may not be provided. 5STRINGY Individual Resident Individual Non Resident HUF Corporate Resident Corporate Non- Resident Association of Persons Body of Individuals Partnership Firm Limited Liability Partnership Trust FPI Other 5STRINGY General Accredited Mandator y Y Y Page 108 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India #TagData TypeMandator y Allowed CharacterComments Large Value Accredited Co-investment Not Applicable 7 STRINGY Discretionary Non-Discretionary Advisory 8STRINGY Maximum length allowed: 100 9STRINGN Maximum length allowed: 35 10STRINGN Maximum length allowed: 35 11STRINGYMaximum length allowed: 300 12STRINGNMaximum length allowed: 100 13STRINGNMaximum length allowed: 35 14INTNLength allowed: 4 to 6 Mandator y Page 109 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India #TagData TypeMan....
X X X X Extracts X X X X
X X X X Extracts X X X X
....count - True Inactive Account - False Examples of inactive accounts: · UCC created but funds not received. · Full Redemption request received, but full and final settlement is pending. · Insufficient funds and client not reachable 35DATENYYYY-MM-DDMandatory for inactive accounts. If account inactive on account of complete withdrawal of funds, the date as mentioned written request has to be mentioned. 36 STRINGNMaximum length allowed: 200Reason for tagging account as inactive. Mandator y Page 113 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India #TagData TypeMandator y Allowed CharacterComments Reasons may be one of the below: 1. Insufficient funds and client not reachable 2. Demat account opened but no initial fund transfer. 3. Written instruction received for complete redemption of funds. 4. Others - please specify 37DATENYYYY-MM-DDThe date of full and final settlement shall be reported as Account Closure Date. Mandator y Page 114 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à....
X X X X Extracts X X X X
X X X X Extracts X X X X
....favour of PM 11BOOLY TRUE FALSEWhether client has given permission for investments in associates/related parties 12 FLOATNDECIMAL(5,2)Percent of AUM which can be invested by PM in the equity shares of one associate/related party. Only required if value is true in #11. 13 FLOATNDECIMAL(5,2)Percent of AUM which can be invested by PM in the equity shares of all its associate/related party. Only required if value is true in #11. Mandator y Y Y Page 117 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India #TagData TypeMandator yAllowed CharacterComments 14 FLOATNDECIMAL(5,2)Percent of AUM which can be invested by PM in the debt and hybrid securities of one associate/related party. Only required if value is true in #11. 15 FLOATNDECIMAL(5,2)Percent of AUM which can be invested by PM in the debt and hybrid securities of all its associate/related party. Only required if value is true in #11. 16 FLOATNDECIMAL(5,2)Percent of AUM which can be invested by PM in the equity, debt and hybrid securities of all its associate....
X X X X Extracts X X X X
X X X X Extracts X X X X
....175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India of preceding working day. Page 122 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India 1.5. PMS_Inspection_Client_Cap_Transactions Client_Cap_Transactions [] - None or more occurrences allowed Important Note: Kindly ensure that each of the UNIQUE_CLIENT_CODE and CLIENT_FOLIO_NO combination entered in this report should exactly match with some entry of UNIQUE_CLIENT_CODE and CLIENT_FOLIO_NO present in the CLIENT_FOLIO_MASTER report #TagData TypeMandatoryAllowed CharacterComments 1STRINGY Maximum length allowed: 20Unique client code 2STRINGY Maximum length allowed: 20Folio no. of the client. Provide Unique Client Code, if folio no. not maintained. 3STRINGYInitial Inflow Top Up Partial Redemption Full Redemption Interest/Dividend Pay-in Interest/Dividend Pay-out* Please see note below. All re....
X X X X Extracts X X X X
X X X X Extracts X X X X
....us ExpenseIn case of PMS Fees, either Management Fees (fixed) or Performance Fees (variable) or Exit Load. In case of Operating Expenses: (Account Opening charges including stamp duty / Audit Fee / Bank charges / Fund Accounting charges / Custody Fee / Demat charges / Broking Fees or other miscellaneous expense) Page 126 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India #TagData TypeMandatoryAllowed CharacterComments 6FLOATYDECIMAL(20,4)Amount of the expense charged in INR Page 127 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India PMS_Inspection_Client_Holding_Master 1.7. Client_Holding [] - None or more occurrences allowed Important Note: 1. Kindly ensure that each of the UNIQUE_CLIENT_CODE and CLIENT_FOLIO_NO combination entered in this report should exactly match with some entry of UNIQUE_CLIENT_CODE and CLIENT_FOLIO_NO present in ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Board of India #TagData TypeMandator yAllowed CharacterComments 17DATENYYYY-MM-DDMaturity Date (in case of debt instrument) 18STRINGNPut CallOption Type (Call or Put) Page 131 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India PMS_Inspection_PM_Operating_Expense 1.8. PMS_Expense [ ] - None or more occurrences allowed Important Note: For ease of reporting, for each nature of service, a single entry with aggregate amount per vendor per month may be reported with ACCRUAL_DATE as the last date of the month for which the report is being submitted. #TagData TypeMandator y Allowed CharacterComments 1.DATEY YYYY-MM-DDDate of booking the expense 2. STRINGY Length allowed: 10PAN of the vendor from whom the service taken 3.STRINGY Maximum length allowed: 100Name of the vendor from whom the service taken 4.STRINGY Broking Custody DP Fund Accounting RTA Distributor Comm Other Mandator y Y Y Y Y Page 132 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति औà....
X X X X Extracts X X X X
X X X X Extracts X X X X
....aximum length allowed: 20Internal code of the security for which there is no ISIN. 5DATEY YYYY-MM-DD Y Page 136 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India ALLOWED VALUES Allowed values for Ratings AAAAA+AAAA-A+A A-BBB+BBBBBB-BB+BB BB-B+BB-C+C C-A1+A1A2+A2A3+ A3A4+A4Privately RatedSovereignUnrated AAA(SO)AA+(SO)AA(SO)AA-(SO)A+(SO)A(SO) A-(SO)BBB+(SO)BBB(SO)BBB-(SO)BB+(SO)BB(SO) BB-(SO)B+(SO)B(SO)B-(SO)C+(SO)C(SO) C-(SO)D(SO)AAA(CE)A1+(SO)A1(SO)A2+(SO) A2(SO)A3+(SO)A3(SO)A4+(SO)A4(SO)AA+(CE) AA(CE)AA-(CE)A+(CE)A(CE)A-(CE)BBB+(CE) BBB(CE)BBB-(CE)BB+(CE)BB(CE)BB-(CE)B+(CE) B(CE)B-(CE)C+(CE)C(CE)C-(CE)D(CE) A1+(CE)A1(CE)A2+(CE)A2(CE)A3+(CE)A3(CE) A4+(CE)A4(CE)D Page 137 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India Allowed values for Rating Agency CARECRISILICRA FITCHBWRIVR ACUITEINDSMERA SovereignUnrated Page 138 of 175 à¤....
X X X X Extracts X X X X
X X X X Extracts X X X X
....quirementTable Reference 6.1.3.3Operating 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 AUM.Client Folio AUM and Client Expense Master 6.1.3.4Charges for all transactions in a financial year (Broking, Demat, custody etc.) through self or associates shall be capped at 20% by value per associate (including self) per service.PM Level Expense Master 6.1.3.6Profit/ performance shall be computed on the basis of high water mark principle over the life of the investment, for charging of performance / profit sharing fee.Client Expense Master 6.1.4.1Exit Load levied by PMSClient Capital Transaction Page 140 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India Annexure 5D: Format of Quarterly Reporting to Client Account Statement for Quarter ended Email ID: Tel Number: Name of Distributor: A. Account Overview: Name of the Client* PAN* Address Email Phone number Unique Client Code Account Activation date Ty....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ny regulatory authority. Performance report for Client Portfolio and Investment Approach Particulars1 Year3 Years5 Years10 YearsSince Inception Returns of Client Portfolio Aggregate Returns of Investment Approach Benchmark Performance Notes: (i) The above returns to be calculated using Time Weighted rate of return (TWRR). While computing returns of Investment Approach under which the Client Page 143 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India account is managed, all clients falling under said Investment Approach during the relevant period have to be taken into consideration (ii) All investments including cash and cash equivalents to be considered for calculation of returns (iii) In case of a Portfolio Managers offering Co-investment services, performance of portfolio may be calculated and disclosed, as agreed between the Co- investment Portfolio Manager and the co-investor D. Transaction Details: (i) Capital Contribution (from inception till end of reporting period) DateCapital InflowCapital Out....
X X X X Extracts X X X X
X X X X Extracts X X X X
....arding passive breach of investment limits: Page 146 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India Sr. No.passive breach Details ofDate of passive breachany, to rectify the passive Details of steps taken, if breach of limitsDate of rectificationwithin 90 days Whether rectified Date of passive breach any, to rectify the passive Details of steps taken, if breach of limits d. Details of credit ratings of investments in debt and hybrid securities. 7. Any other important information. 8. Portfolio Managers offering Co-investment services, may provide investment data, wherever applicable on cost basis or as may be specified by SEBI Page 147 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India Annexure 7A: Format of Complaint data to be displayed by the Portfolio Managers Format for investor complaints data to be disclosed by Portfolio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ce with Regulation 16(8) of SEBI Portfolio Managers RegulationsIMD/CIR No.1/155740/2009 9.May 11, 2009Compliance with Regulation 16(8) of SEBI (Portfolio Managers) Regulations, 1993IMD/PMS/2/2009/11/05 10.June 11, 2009Submission of Monthly ReportSEBI/IMD/PMS/CIR-3/2009 Page 150 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India 11.June 23, 2009Maintenance of Clients' Funds in a separate Bank Account by Portfolio ManagersIMD/DOF I/PMS/Cir- 4/2009 12.July 31, 2009Amendment to Additional Information for registration / renewal applicationsIMD/DOF I/PMS/Cir- 5/2009 13.September 10, 2009Compliance with Regulation 16(8) of SEBI (Portfolio Managers) Regulations, 1993IMD/DOF-1/PMS/CIR-6/2009 14.March 15, 2010Half Yearly Reporting by Portfolio ManagersIMD/DOF-1/PMS/Cir-1/2010 15.September 21,2010Online processing of Portfolio Manager ApplicationsN.A. 16.October 05, 2010Portfolio Managers - Regulation of fees and chargesCir. /IMD/DF/13/2010 17.October 08, 2010Portfolio Managers - Monthly ReportCir. /IMD/DF/14/2010 18.Nov....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nagersSEBI/HO/IMD/IMD-PoD- 2/P/CIR/2022/172 34.January 10, 2023Change in control of Portfolio Managers providing Co-investment servicesSEBI/HO/IMD/IMD-PoD- 1/P/CIR/2023/8 35.March 29, 2023Cyber Security and Cyber Resilience framework for Portfolio ManagersSEBI/HO/IMD/IMD-PoD- 1/P/CIR/2023/046 36.August 02, 2023Audit of firm-level performance data of Portfolio ManagersSEBI/HO/IMD/IMD-PoD- 1/P/CIR/2023/133 Page 153 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India POLICY RELATED LETTERS/EMAILS ISSUED BY SEBI 1. Performance benchmarking of Portfolio Managers Reference: SEBI Letter No. SEBI/HO/IMD/IMD-PoD-2/P/OW/2022/62571/1 dated December 16, 2022 Addressed to: APMI 1.1. SEBI had constituted a working group for Performance Benchmarking of Portfolio Managers to streamline and standardize the benchmarking by the Portfolio Managers. Based on the recommendations of the said working group and internal deliberations, SEBI had issued circular no. SEBI/HO/IMD/IMD-PoD-2/P/CIR/2022/172 dated December 16, 2022 ('Circular....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o manager and also disclose the same on its website. 1.2.6. Submit monthly reports to SEBI in the format specified at Annexure-B within 7 days from the end of the month starting from the reporting period April 2023 onwards. The said report shall also be made available on APMI website for information to all the stakeholders. The above activities shall be completed by January 31, 2023. 1.3. APMI may, in consultation with SEBI, modify the benchmarks prescribed for a strategy based on the feedback received from the stakeholders and needs arising from the evolution of the industry. 1.4. In addition to the above, the working group has made certain other suggestions which are listed below for your consideration: 1.4.1. APMI may work with the index providers to try and ensure up to three indices for each Strategy to provide a choice to PMs. 1.4.2. APMI may negotiate the cost of using these benchmarks with these providers on behalf of the industry. 1.4.3. APMI will negotiate prices that are conducive to the adoption of standardized valuation norms as part of the empanelment process. APMI may take a suitable view on the above recommendations of the Working Group. Annexure - A: Indic....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... be changed only after offering an option to subscribers to the IA to exit without any exit load. But before the implementation of the circular, if there is any old performance that exists, the same may not be lost and requirement of offering exit to investors in such cases may not apply. 2.Change in benchmark should not be treated as a key attribute change.The same may not be accepted. Once an IA is tagged to a Strategy and/or to a benchmark, the tagging shall be changed only after offering an option to subscribers to the IA to exit without any exit load. 3.Definition of Hybrid and Multi Asset Strategy.Hybrid strategy would include debt and equity. Page 157 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India Multi asset strategy shall include at least 3 asset classes. 4.The requirement of benchmarks to be relaxed for NDPMS.The circular is applicable to both discretionary and Non- discretionary PMS. B. Reporting APMI's QuerySEBI's response 1.XIRR reporting shall trigger only for investors who have completed one....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ि और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India 3. Formats for annual submissions by Portfolio Managers- Proposal on the Formats Reference: SEBI Email dated October 11, 2023 Addressed to: APMI 3.1. Kindly find below formats of following Annual Compliance Reports to be submitted by Portfolio Managers: 3.1.1. Corporate Governance Report. 3.1.2. Certificate of compliance with PMS Regulations and circulars issued thereunder. 3.1.3. Certificate of Compliance with Performance Reporting Guidelines. 3.1.4. Certificate of compliance with Net worth requirements. 3.2. APMI is advised to issue the aforementioned formats to all Portfolio Managers for necessary compliance. 3.3. Further, any suggestion with respect to changes in regulation or circulars issued thereunder may be taken up with IMD-POD. Formats 1.1.1. Corporate Governance Report (To be submitted within 30 days of end of Financial Year) Corporate Governance Report of for FY 20XX-XX The Corporate Governance Report of the PMS bearing SEBI Registration No for the FY 20XX-XX is given below: S. No.ParticularsRemarks (Indicate 'Yes' if complie....
X X X X Extracts X X X X
X X X X Extracts X X X X
....stances of non-compliance, if any: Sl NoDetails of Non-ComplianceCorrective Actions taken 1. 2. 3. The corrective actions for aforementioned non-compliances are duly approved by Board of the Portfolio Manager. This certificate is issued in accordance with requirement of Para 5.2.1.2 of the Master Circular for Portfolio Managers dated March 20, 2023. For PMS ( ) Name of the Principal Officer Date: Page 162 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India 1.1.3. Certificate of compliance with Performance Reporting Guidelines (To be submitted within 60 days of end of Financial Year) Certificate of Compliance with Performance Reporting Guidelines The Certificate of Compliance with Performance Reporting Guidelines by the Firm for the PMS bearing SEBI Registration No for the FY 20XX- XX is given below: S. No.ParticularsRemarks (Indicate 'Yes' if complied with and 'No' for non- compliance along with corrective actions taken, if any) Whether during the year, Portfolio Manager has 1.Considered all cash ho....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ss: Minimum Capital Adequacy/ Net worth requirements (separately and independently) for any other activity undertaken under respective SEBI Regulations. Networth This certificate is issued in accordance with requirement of Para 5.2.1.1 of the Master Circular for Portfolio Managers issued on March 20, 2023. Name of the auditor: Registration/Membership no .: Unique Document Identification Number: Date: (The certificate has to be issued by a qualified Chartered Accountant based on audited account within 6 months from the end of Financial Year. PMS to ensure submission to SEBI with proper forwarding by principal officer.) Page 165 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India 4. Clarification regarding Clause 2.6 and 2.7 of SEBI Master Circular for Portfolio Managers Reference: SEBI Letter No. SEBI/HO/IMD-POD-1/P/OW/2023/50456/1 dated December 27, 2023 Addressed to: APMI 4.1. This has reference to the Clauses 2.6 and 2.7 of the SEBI Master Circular for Portfolio Managers dated March 20, 2023 (hereina....
X X X X Extracts X X X X
X X X X Extracts X X X X
....रà¥à¤¡ Securities and Exchange Board of India 5. Provision for Submission of Compliance Reports of PMS through the SEBI Intermediary Portal Reference: SEBI Email dated April 29, 2024 Addressed to: APMI 5.1. Portfolio Managers to submit the reports as mentioned in the trail email, online through the SEBI Intermediary Portal (SI Portal) at https://siportal.sebi.gov.in/intermediary only. Physical copies of the reports are required to be retained by the PMSs as part of record keeping in terms of SEBI (Portfolio Managers) Regulations, 2020 or as informed by SEBI from time to time. 5.2. Also kindly find below the upload manual for easy reference while submitting reports. 5.3. All PMSs may be advised to adhere to the timelines with regards to the submission. 5.4. In case of any technical issues faced while uploading reports, the same may be flagged with screenshot of the issue to our ITD Team at [email protected]. 5.5. APMI is advised to issue clarification/ notification to all Portfolio Managers in this regards. Upload Manual Facility to upload periodic regulatory reports/certificates submitted by Portfolio Managers (PMS) 1. Facility for uploading of following ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t within 6 months from the end of Financial Year. Page 169 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India 2.3Certificate of compliance with Regulations2.3.1. In terms of clause 5.2.1.2 of the Master Circular for Portfolio Managers issued on March 20, 2023, Portfolio Managers are required to submit to SEBI, a certificate of compliance with PM Regulations and circulars issued thereunder, duly signed by the Principal Officer, within 60 days of end of each financial year. 2.3.2. Further, details of non-compliance along with the corrective actions, if any, duly approved by Board of the Portfolio Manager, shall also be provided. 2.4Certificate of Compliance with Performance Reporting Guidelines2.4.1. Clause 4.5.3. of the Master Circular for Portfolio Managers issued on March 20, 2023 may be referred which specifies the manner in which performance benchmark reporting to clients is required to be done. 2.4.2. The firm-level performance data of Portfolio Managers shall be audited annually. Confirmation with complia....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ET FEES 4.2. Click on Proceed to Upload % uatsiportal.sebi.gov.in/intermediary/reportModule.html COA S = O VPN 53 4 Securities and Exchange Board of India à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Friday Apr 26 2024 | 12:07:28 Tuesday Apr 02 2024 | 02:16:44 Portfolio Managers Report Module Report Module Name of the Applicant: Pallavi Role: Portfolio Managers Registration Start Date: 22/01/2023 Registration No .: INP000464208 View Uploads Proceed to Upload Available Downloads PMS Offsite Data - Client Expense PMS Offsite Data - Client Folio AUM PMS Offsite Data - Client Folio Master PMS Offsite Data - Client Holding PMS Offsite Data - Client Master PMS Offsite Data - PM Expense 4.3. The reports will appear as under. Page 171 of 175 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India C % uatsiportal.sebi.gov.in/intermediary/reportModuleUpload.html O VPN ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ड Securities and Exchange Board of India Last Login Details: Friday Apr 26 2024 | 12:07:28 Tuesday Apr 02 2024 | 02:16:44 Portfolio Managers Report Module | PMS Certificate of Net Worth | Upload Upload Name of the Applicant: Pallavi Role: Portfolio Managers Registration Start Date: 22/01/2023 Registration No .: INP000464208 PMS Certificate of Net Worth Browse Select File Upload 5. Status of the uploaded reports can be viewed at the following path :- Portfolio Managers -> Other Reports -> Report Module -> Proceed to Upload 5.1. Click on View Uploads button Q CVA 0 uatsiportal.sebi.gov.in/intermediary/reportModule.html O VPN S 4 Welcome Pallavi Logout à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India Last Login Details: Friday Apr 26 2024 | 12:07:28 Tuesday Apr 02 2024 | 02:16:44 n Portfolio Managers Report Module Report Module Name of the Applicant: Pallavi Registration No .: INP000464208 Role: Portfolio Managers Registration Start Date: 22/01/2023 Proceed to UploadView Uploads Avai....