NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Role of Portfolio Managers
Under SEBI Portfolio Managers Regulations, what is the minimum amount a client must bring in as the initial investment with a portfolio manager (other than accredited investors)?
The minimum investment per client with a portfolio manager is Rs 50 lakh, in cash, securities or both. SEBI raised it from the earlier Rs 25 lakh, though accredited investors can have a lower threshold under the regulations.
- ARs 10 lakh
- BRs 25 lakh
- CRs 50 lakhCorrect
- DRs 1 crore
Explanation
SEBI prescribes a minimum investment of Rs 50 lakh per client, either in funds or securities or a combination, across the portfolio manager's services. Rs 25 lakh was the earlier limit, before the revision. Accredited investors may be allowed to invest below this amount.
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