- INTRODUCTION
With over 15 years of expertise, we are a leading Corporate Consultancy Firm & Practicing Company Secretaries (PCS) Firm, specializing in regulatory compliance, corporate governance, and advisory services. We assist businesses in navigating complex legal frameworks, ensuring seamless compliance with corporate laws, SEBI regulations, RBI guidelines, and other statutory requirements.
Our firm is committed to delivering strategic, timely, and precise solutions to corporates, start-ups, and investors.
- WHAT ARE PORTFOLIO MANAGEMENT SERVICES (PMS)?
Portfolio Management Services (PMS) are investment solutions offered by SEBI-registered Portfolio Managers to manage client portfolios in securities and other financial assets. PMS providers design customized investment strategies to cater to the specific needs of investors.
The Securities and Exchange Board of India (SEBI) regulates PMS under the SEBI (Portfolio Managers) Regulations, 2020 to ensure investor protection, transparency, and compliance with best practices.
- DOCUMENTS REQUIRED FROM APPLICANT SEEKING SEBI CERTIFICATE AND REGISTRATION OF PORTFOLIO MANAGEMENT SCHEME:
An indicative list of documents/information to be furnished along with the application. All documents/information is to be submitted in duplicate.
- Memorandum of Association
- Articles of Association
- Certificate of Incorporation
- Balance Sheets (Previous 3 years) with Auditors’ Reports
- Minimum Net Owned Fund requirement INR 500 lakhs. (Registrar of Companies, Pune, Form 2/PAS 3)
- KYC details of Promoters
- CIBIL Reports of Promoters and Directors
- Organization Structure
- Details of Shareholders and Directors
- Next five years business plans
- Financial Information
- Profile of all promoters (Like Resume)
- REQUIREMENTS TO ACT AS PORTFOLIO MANAGER:
- Minimum Net Worth Requirement:
The Portfolio Manager is required to have a minimum net worth of INR 5 crore.
- Minimum value of fund or securities that can be accepted by the Portfolio Manager from the client while opening the PMS account:
The Portfolio Manager is required to accept minimum INR 50 lacs or securities having a minimum worth of INR 50 lacs from the client.
- ESTIMATED TIME:
| Sr. No. |
Particular | Days | Remark |
| 1 | Portfolio Management Services (PMS) | 3 to 3.5 Months | Registration of PMS with SEBI |
- PORTFOLIO MANAGERS VS PORTFOLIO MANAGEMENT SERVICES (PMS) DISTRIBUTORS
| Basis of Differentiation | PORTFOLIO MANAGERS | PMS DISTRIBUTORS |
| Role | Directly manage clients’ investment portfolios. | Facilitate the distribution of PMS products to investors. |
| Primary Function | Make investment decisions (buy/sell securities) on behalf of clients. | Act as intermediaries connecting investors with PMS providers. |
| Regulation | Regulated by SEBI under SEBI (Portfolio Managers) Regulations, 2020. | Regulated as per SEBI guidelines for intermediaries (registered under RIA or ARN). |
| Client Relationship | Establish a fiduciary relationship with clients and directly manage their funds. | No fiduciary duty; relationship limited to selling or recommending PMS products. |
| Services Offered | Provide tailored investment strategies and active portfolio management. | Offer PMS product options and assist in onboarding clients to PMS platforms. |
| Revenue Model | Charge management fees (fixed/variable) or performance-linked fees. | Earn commissions or referral fees from PMS providers or charge advisory fees. |
| Expertise | Highly skilled in market analysis, portfolio structuring, and risk management. | Focused on sales, marketing, and client acquisition for PMS providers. |
| Customizability | Fully customizable investment strategies based on client needs. | Limited to offering pre-defined PMS products; no control over portfolio decisions. |
| Control over Investments | Complete control over investment decisions. | No control; role ends after facilitating the investment. |
| Reporting | Provide regular portfolio performance updates directly to clients. | Do not provide performance updates; rely on PMS providers to handle reporting. |
| Client Base | High-net-worth individuals (HNIs), ultra-HNIs, family offices, and institutional clients. | Retail investors, HNIs, or anyone seeking PMS solutions. |
- PLACE OF RENDERING SERVICES:
The place of rendering services generally shall be our office situated at Off No. 106, Sr. No. 55, Sukhniwas, Mangalwar Peth, Pune -411011.
- FEES:
We are pleased to inform you that the Professional Fees will be as mentioned in the table below:
| Sr. No. |
Particular | Amount in INR |
| 1. | Application for Portfolio Management Services (PMS) with SEBI | 1,00,000/- (Indian Rupees One Lakh) Only |
| 2. | Registration fees post successful application is made | 10,00,000/- (For Three Years) (Indian Rupees Ten Lakhs) Only |
| 3. | Professional fees | To be discussed in a meeting |
| 4. | Government Fees & Out of pocket expenses | At Actual |
GST @ 18% shall be applicable.
“Our priority is Client’s satisfaction and we believe in maintaining healthy and long-term relations with our clients.”
Thanking you and assuring best professional services.
For Ladda Bhutada & Associates,
PRAMODKUMAR R. LADDA
Company Secretary
