Moneycontrol
Get App
you are here: HomeNewsBusiness
Last Updated : Feb 13, 2020 09:44 PM IST | Source: PTI

SEBI issues guidelines for portfolio managers

According to the regulator, brokerage at actuals should be charged to clients as expense.


Markets watchdog Securities and Exchange Board of India (SEBI) on February 13 issued guidelines for portfolio managers and said they cannot charge upfront fee from clients. SEBI (Portfolio Managers) Regulations, 2020, were notified on January 16.

In addition, certain changes to the regulatory framework for portfolio managers have been mandated.

"As provided in Regulation 22 (11) of the PMS Regulations, no upfront fees shall be charged by the portfolio managers, either directly or indirectly, to the clients," SEBI said.

Close

According to the regulator, brokerage at actuals should be charged to clients as expense.

"Operating expenses excluding brokerage, over and above the fees charged for Portfolio Management Service, shall not exceed 0.50 per cent per annum of the client's average daily Assets under Management (AUM)," it added.

Exclusive offer: Use code "BUDGET2020" and get Moneycontrol Pro's Subscription for as little as Rs 333/- for the first year.

First Published on Feb 13, 2020 09:40 pm
Sections
Follow us on