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NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Regulatory, Governance and Ethical Aspects of Portfolio Managers

Under the SEBI (Portfolio Managers) Regulations, 2020, what is the minimum investment amount a client must bring in when onboarding with a portfolio manager for the PMS (other than an accredited investor exemption)?

The minimum investment per client under the SEBI Portfolio Managers Regulations, 2020 is Rs 50 lakh, which may be in funds, securities or both. Accredited investors can be allowed a lower threshold, but for ordinary clients Rs 50 lakh is the prescribed floor.

  1. ARs 10 lakh
  2. BRs 25 lakh
  3. CRs 50 lakhCorrect
  4. DRs 1 crore

Explanation

SEBI requires a minimum investment of Rs 50 lakh per client with a portfolio manager, either in funds or securities or a combination. Accredited investors may be permitted a lower threshold, but the standard figure is Rs 50 lakh. Rs 25 lakh was never the prescribed floor under the 2020 Regulations.

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