NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Portfolio Manager
Under the SEBI (Portfolio Managers) Regulations, what is the minimum amount of funds or securities a portfolio manager can accept from a new client for a portfolio management service?
The minimum amount a portfolio manager can accept from a client is Rs 50 lakh, in funds, securities or a combination. SEBI set this floor so that portfolio management remains a service for investors with larger capital, and lower amounts are not permitted for a new client.
- ARs 10 lakh
- BRs 25 lakh
- CRs 50 lakhCorrect
- DRs 1 crore
Explanation
SEBI prescribes a minimum investment of Rs 50 lakh per client with a portfolio manager, either in funds or securities or both. Rs 25 lakh and Rs 10 lakh are lower than the prescribed floor. Rs 1 crore is not the regulatory minimum; it is closer to higher thresholds for other categories.
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