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NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Role of Portfolio Managers

Under the SEBI (Portfolio Managers) Regulations, 2020, what is the minimum investment amount a portfolio manager can accept from a client (other than an accredited investor) at the time of onboarding?

The minimum investment a portfolio manager can accept from a client is Rs 50 lakh, in funds, securities or both, under the SEBI (Portfolio Managers) Regulations, 2020. The earlier limit of Rs 25 lakh was raised, and accredited investors can be offered relaxations.

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

Explanation

The 2020 Regulations set the minimum investment per client at Rs 50 lakh, either in funds or securities or a combination. Accredited investors may be offered relaxations. Earlier regimes had a lower threshold of Rs 25 lakh, so Rs 25 lakh is outdated.

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