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

Which statement about the minimum investment amount per client in a Portfolio Management Service under SEBI regulations is correct?

SEBI requires each PMS client to invest at least ₹50 lakh in funds, securities or both. Accredited investors can be exempted from this minimum. Lower thresholds such as ₹25 lakh or ₹10 lakh do not apply to normal PMS clients.

  1. AIt is ₹25 lakh, and the portfolio manager may accept lower amounts from retail investors
  2. BIt is ₹50 lakh, and accredited investors may be exempted from itCorrect
  3. CIt is ₹10 lakh for all clients
  4. DIt is ₹1 crore for resident individuals only

Explanation

SEBI requires a minimum investment of ₹50 lakh per client, either in funds or securities or both. Accredited investors may be exempted from this minimum, subject to the conditions. The other options state wrong amounts or wrongly restrict applicability.

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