NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Role of Portfolio Managers
Which of the following best describes the minimum investment requirement per client under the SEBI regulations for a portfolio manager's PMS?
The SEBI regulations prescribe a minimum investment of Rs 50 lakh per client for portfolio management services, which may be in cash, securities or a combination. The lower figures such as Rs 10 lakh or Rs 25 lakh are not the regulatory minimum for ordinary clients.
- ARs 10 lakh
- BRs 25 lakh
- CRs 50 lakhCorrect
- DRs 1 crore
Explanation
SEBI requires a minimum investment of Rs 50 lakh per client in PMS, either in funds or securities or a combination. The other amounts are not the prescribed threshold. Accredited investors may be allowed to go below this threshold under specific conditions.
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