SEBI permits accredited investors to charge fees for Portfolio Management Services

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Portfolio Management Services for Accredited Investors; SEBI

Circular No. SEBI/HO/IMD/IMD-I DOF1/P/CIR/2021/693, Dated: 21.12.2021

The SEBI, through its earlier Circular no. SEBI/HO/IMD/DF1/CIR/P/2020/26 dated February 13, 2020, specified the modes and limits of fees that can be charged by Portfolio Management Services (PMs) from a client. A partial amendment has been made to said circular and from now onwards in the case of accredited investors, the limits and modes of fees payable to the PMs shall be governed through bilaterally negotiated contractual terms.

In the case of large-value accredited investors, the quantum and manner of exit load applicable to the client of the portfolio manager will be governed through bilaterally negotiated contractual terms.

Exit load charged by portfolio managers was: 3%, 2%, 1% for the First, second, and third-year respectively. A partial modification to such states that in the case of accredited investors, the limits and modes of fees payable to the PMs shall be governed through bilaterally negotiated contractual terms.

Click Here to Read the Full Notification
Check out NISM's (An Educational Initiative of SEBI) Portfolio Managers & Portfolio Management Services (PMS) Distributors

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