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, what is the minimum initial investment amount a client must bring when first engaging a portfolio manager for a PMS account?
The minimum investment per client with a portfolio manager is Rs 50 lakh, which may be brought in as funds, securities or a combination. This threshold ensures PMS serves larger investors, unlike mutual funds which have no such floor.
- 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 a combination. Lower figures such as Rs 10 lakh or Rs 25 lakh are not the PMS threshold. Rs 1 crore is not required either.
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