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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 per client that a portfolio manager can accept when onboarding a client for portfolio management services (other than accredited investors, who may be treated differently)?

The minimum investment per client in portfolio management services under SEBI rules is Rs 50 lakh, which may be brought in as cash, securities or a combination of both. Accredited investors can be treated differently, but the general threshold for ordinary clients is Rs 50 lakh.

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

Explanation

SEBI prescribes a minimum investment of Rs 50 lakh per client, either in funds or securities or a combination, for PMS. Accredited investors may be allowed a lower minimum. Rs 25 lakh and Rs 10 lakh are lower than the prescribed threshold, and Rs 1 crore is not the regulatory minimum.

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