SEBI Portfolio Management Services for Accredited Investors

Last updated: 22 December 2021

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The Securities and Exchange Board of India (SEBI) has issued a circular clarifying rules for Portfolio Management Services (PMS) specifically for accredited investors. This update, stemming from amendments in August 2021, defines 'accredited investor' and introduces new guidelines for exit loads. For 'large value accredited investors', exit loads will now be determined by negotiated contractual terms, superseding previous regulations.

Securities and Exchange Board of India CIRCULAR No.SEBI/HO/IMD/IMD-I DOF1/P/CIR/2021/693 Dated:December 21, 2021 To, All Portfolio Managers Dear Sir / Madam, Subject: Portfolio Management Services for Accredited Investors 1. The amendment to SEBI (Portfolio Managers) Regulati

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FAQ :

The circular clarifies the framework for Portfolio Management Services (PMS) for accredited investors.

These concepts were introduced through amendments to the SEBI (Portfolio Managers) Regulations, 2020, notified on August 3, 2021.

For large value accredited investors, the quantum and manner of exit load will be governed by bilaterally negotiated contractual terms.

No, the provisions of para 3(iv) of the SEBI Circular dated February 13, 2020, regarding exit loads, are not applicable to large value accredited investors.

The circular is available on the SEBI website (sebi.gov.in) under the categories 'Info for - Portfolio Managers' and 'Legal framework - Circulars'.