PMS Registration SEBI

Eligibility Criteria for Obtaining PMS SEBI Registration

The eligibility criteria for obtaining PMS SEBI registration in India are as discussed below:

• Must be a body corporate with fit and proper criteria
• Must hold necessary infrastructure, such as adequate office space, manpower, etc.
• Ensure appointment of a compliance officer
• Have at least one employee with at least 2 years of experience in investment management
• Appoint a principal officer qualified in finance, accounts, business management, or law
• The principal officer must have a minimum of 5 years of experience in activities related to the securities market
• The principal officer must possess a relevant NISM certification by SEBI
• Must have a minimum net worth requirement of Rs. 5 crores, subject to exceptions
• Must hold an active bank account in a well-recognized bank
• Must have a tie-up with a custodian holding securities under the client’s name/ownership

Categories of PMS for SEBI PMS License

Have a look at the categories of PMS for SEBI PMS license based on the degree of control and investor involvement-

• Discretionary PMS - All the decisions are taken by the fund manager on your behalf.
• Non-Discretionary PMS - The fund manager recommends better investment prospects, but the final decision is yours.
• Advisory PMS - The fund manager only gives advice; you must proceed with executing the investments.

Difference b/w PMS and Mutual Funds