NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Portfolio Manager
Ms Rao, a client of a portfolio manager, asks how the manager's fund-related money must be held. Which statement is correct under the SEBI (Portfolio Managers) Regulations, 2020?
Client funds and securities must be kept segregated, with a separate bank account and a separate demat account for the client's portfolio, distinct from the portfolio manager's own assets. Pooling client money with the manager's funds or using a common demat account is not permitted.
- AClient funds may be pooled with the portfolio manager's own funds for convenience
- BClient funds and securities must be kept in a separate bank account and demat account for each client's portfolio, distinct from the manager's ownCorrect
- CClient funds must be held only in the name of the portfolio manager's directors
- DClient securities may be held in a single common demat account for all clients
Explanation
The regulations require segregation: client money must be kept in a separate bank account and securities in a client-specific demat account, kept distinct from the manager's own. Pooling or a common account would breach this and risk mixing assets.
Did you get it right without looking?
One question tells you little. A timed set on Portfolio Manager shows your real accuracy, how long you take and where you lose marks.
More Portfolio Manager questions
- Ms Kavita, aged 45, invests Rs 50 lakh in a PMS. The portfolio is Rs 50 lakh at start and grows to Rs 56 lakh at end of year 1, then Rs 50.4…
- A PMS investor's portfolio grew from Rs 10,00,000 to Rs 12,10,000 over exactly two years with no inflows or outflows. What is the annualised…
- Ms. Iyer, a salaried professional, wants a PMS provider to invest her Rs 60 lakh and asks the adviser about the fee structure. Which fee str…
- In a discretionary portfolio management service, which statement is correct?
- Mr Iyer invested Rs 1,00,000 with a portfolio manager on 1 April. The portfolio value was Rs 1,20,000 after year 1 and Rs 1,02,000 after yea…
- Which of the following is a feature of a portfolio manager's relationship with the client under the SEBI regulations?