Contract with clients and disclosures

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..... alia, contain: (i) the investment objectives and the services to be provided; (ii) areas of investment and restrictions, if any, imposed by the client with regard to the investment in a particular company or industry; (iii) type of instruments and proportion of exposure; (iv) tenure of portfolio investments; (v) terms for early withdrawal of funds or securities by the clients; (vi) attendant risks involved in the management of the portfolio; (vii) period of the contract and provision of early termination, if any; (viii) amount to be invested subject to the restrictions provided under these regulations; (ix) procedure of settling client's account including form of repayment on maturity or early termination of .....

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..... r: Provided that the performance of a discretionary portfolio manager shall be calculated using weighted average method taking each individual category of investments for the immediately preceding three years and in such cases performance indicators shall also be disclosed; (v) the audited financial statements of the portfolio manager for the immediately preceding three years. (c) The contents of the Disclosure Document shall be certified by an independent chartered accountant. (d) The portfolio manager shall file with the Board, a copy of the Disclosure Document before it is circulated or issued to any person and every six months thereafter or whenever any material change is effected therein whichever is earlier, along with the .....

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..... (iv) period of the contract and provision of early termination, if any; (v) amount to be invested; (vi) procedure of settling client's account including form of repayment on maturity or early termination of contract; (vii) fees payable to the portfolio manager; (viii)custody of securities. (2) The funds of all clients shall be placed by the portfolio manager in a separate account to be maintained by him in a scheduled commercial bank. Explanation.─ For the purposes of this sub-regulation scheduled bank means any bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934); (3) The portfolio manager shall charge an agreed fee from the client for rendering portfolio management se .....

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