NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Portfolio Manager
Which of the following is a requirement for a portfolio manager regarding client funds under the SEBI (Portfolio Managers) Regulations, 2020?
A portfolio manager must keep each client's funds and securities separate from its own money and from other clients' holdings. This segregation protects client assets, and pooling funds or freely investing in group companies is not allowed under the regulations.
- APooling funds of all clients in a single account for discretionary services
- BKeeping client funds and securities separate from the portfolio manager's own fundsCorrect
- CInvesting client funds in group companies without limits
- DLending client securities freely to the portfolio manager's affiliates
Explanation
Portfolio managers must keep client funds and securities segregated in separate accounts from their own and from other clients. Pooling and unlimited related-party investment are restricted.
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