Portfolio Managers – clarification on minimum investment amount by clients, performance of portfolio and schemes
Summary
This SEBI circular clarifies regulatory requirements for Portfolio Managers regarding minimum client investments, performance disclosures, and terminology. It mandates a minimum initial lump-sum investment of INR 5 lakh and prohibits the use of the term 'Schemes' for marketing portfolios. Additionally, it requires specific disclosure of portfolio performance data in a prescribed tabular format.
Text
the first single lump-sum investment amount received as funds or securities from clients should not be less than `5 Lakh.
Portfolio Managers shall disclose the performance of portfolios grouped by investment category for the past three years as per the enclosed prescribed tabular format.
Portfolio Managers shall also ensure that the disclosure document is given to all clients along with the account opening form at least two days in advance of signing of the agreement.
portfolio managers shall place the latest disclosure document on their website, wherever possible.
Portfolio Managers shall not organize investment portfolios as „Schemes‟ akin to Mutual Fund Schemes while marketing their services to clients.
Source: SecMarx — Portfolio Managers – clarification on minimum investment amount by clients, performance of portfolio and schemes. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.