NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Operational Aspects of Portfolio Managers
Under the SEBI (Portfolio Managers) Regulations, 2020, what is the minimum amount a client must invest in the PMS, whether in funds or securities, at the time of onboarding?
The minimum investment per client is Rs 50 lakh, which can be in funds, securities or both. This floor was set by SEBI to ensure PMS serves investors with adequate risk capacity, and the other amounts are not the prescribed minimum.
- ARs 50 lakhCorrect
- BRs 25 lakh
- CRs 10 lakh
- DRs 1 crore
Explanation
SEBI requires a minimum investment of Rs 50 lakh per client with a portfolio manager, either as funds, securities or both. Accredited investors may be allowed to invest below this threshold under the framework. The other amounts are not the prescribed minimum.
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