Portfolio Management Service (PMS)

Tailored Investment Strategy: Unlike mutual funds, PMS provides a unique investment approach based on your individual goals and risk appetite.

Active Management: A dedicated professional actively manages your portfolio, adjusting it to market changes and your evolving needs.

Direct Investment: PMS offers direct investment in various asset classes, potentially leading to greater control and transparency compared to mutual funds.

Potential for Enhanced Returns: Skilled portfolio managers aim to generate returns exceeding those offered by passively managed funds.

Discretionary PMS:

Under the discretionary PMS, the choice as well as the timings of the investment decisions rest solely with the Portfolio Manager and the Portfolio Manager can exercise any degree of discretion in the investments or management of assets of the Client. This right of the Portfolio Manager shall be exercised strictly by the Applicable Laws.

Non – Discretionary PMS:

Under the non-discretionary PMS, the Client has complete discretion to decide on the investment. The Portfolio Manager, inter alia, manages transaction execution, accounting, recording or corporate benefits, valuation and reporting aspects on behalf of the Client. Under the non-discretionary portfolio management service, the portfolio manager manages the funds under the directions of the client.

Advisory Services:

The Portfolio Manager shall be solely acting as an advisor to the Client Portfolio and shall not be responsible for the investment or divestment of Securities and/ or any administrative activities on the Client Portfolio. The Portfolio Manager shall provide advisory services under such guidelines and/or directives issued by the regulatory authorities and/ or the Client, from time to time, in this regard.

1. Corporate Governance
   
   

• Disclosure of Benchmark Performance: PMS providers must disclose the performance of benchmark indices in their periodic reports to clients.

• Compliance Officer Reporting: The compliance officer should report to the Board of Directors about compliance with PMS regulations.

• Investor Grievance Redressal: The Board should review the redressal of investor grievances.

• Disclosure of Deficiency Letters: Any warning letters or deficiency letters issued by SEBI should be presented to the Board.

• Internal Audit: An internal audit must be conducted by a practicing CS or CA to assess the quality of internal procedures.

• Due Diligence: PMS providers must exercise due diligence in their operational activities.

2. Net Worth Certification
   
   

• PMS providers must submit a net worth certificate to SEBI annually, based on audited financials. The definition of net worth is provided in the PMS regulations.

3. Certificate by Principal Officer

• The principal officer must submit a compliance certificate to SEBI within 60 days of the financial year-end.

• The certificate should include details of non-compliance and corrective actions.

4. Monthly Reporting

• PMS providers must submit a monthly report on their portfolio management activity to SEBI's Intermediaries Portal within 7 working days from the end of each month.

5. Quarterly Reporting to Clients

• PMS providers must provide quarterly reports to clients, detailing portfolio performance, investments, and other relevant information.

6. Performance Reporting

• Performance must be calculated using the Time Weighted Rate of Return.

• All cash holdings and liquid fund investments should be considered.

• Performance data should be reported net of fees, expenses, and taxes.

• Any changes in investment approach should be disclosed.

• Firm-level performance data must be audited annually and reported to SEBI.

7. Disclosure Document Updates

• Any material changes to the disclosure document must be filed with SEBI within 7 working days.