TMI BlogPortfolio Managers - Facilitating ease in digital on-boarding process for clients and enhancing transparency through disclosuresX X X X Extracts X X X X X X X X Extracts X X X X ..... ations, 2020 and recommend measures to promote ease of doing business for Portfolio Managers. Based on the recommendations of the working group, a public consultation was carried out. 2. Pursuant to the above, the following has been decided: 2.1. Ease in digital on-boarding process for clients of Portfolio Managers 2.1.1. Regulation 22(1) of SEBI (Portfolio Managers) Regulations, 2020 , inter-alia states that a portfolio manager shall, before taking up an assignment of management of funds and portfolio on behalf of a client, enter into an agreement in writing with such client that clearly defines the inter-se relationship and set out their mutual rights, liabilities and obligations relating to management of portfolio containing the details ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n advance to all new clients, on-boarded on or after October 01, 2024. 2.3. Additional fees disclosures 2.3.1. PMS client agreement a) In partial modification to the Clause 4.3.1 of Master Circular, whenever performance fees is charged to the client, the annexure for fees and charges to the PMS-client agreement, shall also contain the following additional fee illustrations: One year and multi-year fee illustrations that cover different scenarios viz. increase in the portfolio value by a certain percentage, decrease in the portfolio value by a certain percentage and when the portfolio value remains unchanged. The said illustrations shall also suitably incorporate the high watermark principle. b) The above illustrations shall be provided for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ient agreement. 4. This circular shall come into effect from October 01, 2024. APMI shall issue the standard procedures and formats mentioned at para 2.1.4, 2.3.1(c), 2.3.2 (c) and 2.4.4 by July 31, 2024. 5. This circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with Regulation 43 of SEBI (Portfolio Managers) Regulations, 2020 , to protect the interest of investors in securities and to promote the development of, and to regulate the securities market. 6. This circular is available at under the link Legal Circulars . Yours faithfully, Peter Mardi Deputy General Manager +91-22-26449233 [email protected] - Circular - Trade Notice - Public Notice - Instruct ..... X X X X Extracts X X X X X X X X Extracts X X X X
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