Investor Charter

PMS

RIA

Investor Charter in Respect of Portfolio Management Services

A. Vision and Mission Statements for investors

Vision:

To implement diligently researched customised investment strategies which help investors meet their long-term financial goals in a risk appropriate manner.

Mission:

To ensure that the PMS industry provides a viable investment avenue for wealth creation by adopting high levels of skill, integrity, transparency, and accountability.

B. Details of business transacted by the organization with respect to the investors

    i.   appropriate risk profiling of investors

    ii.  to provide Disclosure Document to investors

    iii. executing the PMS agreement

    iv. Making investment decisions on behalf of investors (discretionary) or investment decisions taken at the

         discretion of the Investor (non-discretionary) or advising investors regarding their investment decisions

         (advisory), as the case may be.

        

C. Details of services provided to investors and estimated timelines: -

        

     i. Discretionary & Non-Discretionary Portfolio Management Services (PMS)

        Under these services, all an investor has to do, is to give his portfolio in any form i.e. in stocks or cash or a

        combination of both. The minimum size of the portfolio under the Discretionary and/ or Non-Discretionary

        Funds Management Service should be Rs.50 lakhs as per the current SEBI Regulations. However, the PMS

        provider reserves the right to prescribe a higher threshold product-wise or in any other manner at its sole

        discretion. The PMS provider will ascertain the investor’s investment objectives to achieve optimal returns

        based on his risk profile. Under the Discretionary Portfolio Management service, investment decisions are at

        the sole discretion of the PMS provider if they are in sync with the investor’s investment objectives. Under the

        Non-Discretionary Portfolio Management service, investment decisions taken at the discretion of the Investor.

    ii. Investment Advisory Services

        Under these services, the Client is advised on buy/sell decision within the overall profile without any back-office          responsibility for trade execution, custody of securities or accounting functions. The PMS provider shall be 

        solely acting as an Advisor to the Client and shall not be responsible for the investment/divestment of securities

        and/or administrative activities on the client’s portfolio. The PMS provider shall act in a fiduciary capacity

        towards its Client and shall maintain arm’s length relationship with its other activities. The PMS provider shall

        provide advisory services in accordance with guidelines and/or directives issued by the regulatory authorities

        and/or the Client from time to time in this regard.

   iii. Client On-boarding

        a. Ensuring compliance with KYC and AML guidelines.

        b. franking & signing the Power of Attorney to make investment decisions on behalf of the investor.

        c. Opening demat account and funding of the same from the investor’s verified bank account and/or transfer

            of securities from verified demat account of the investor and

        d. Mapping the said demat account with Custodian.

    iv. Ongoing activities

        a. To provide periodic statements to investors as provided under the PMS Regulations 2020 and other SEBI

            notifications and circulars (“PMS Regulations”) and

        b. Providing each client an audited account statement on an annual basis which includes all the details as

            required under the PMS Regulations.

     v. Fees and Expenses

         Charging and disclosure of appropriate fees & expenses in accordance with the PMS Regulations.

     vi. Closure and Termination

          Upon termination of PMS Agreement by either party, the securities and the funds lying in the account of the

          investor shall be transferred to the verified bank account/ demat account of the investor.

    vii. Grievance Redressal

          Addressing in a time bound manner investor’s queries, service requests and grievances, if any, on an ongoing

          basis.

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Sr.No.

Service / Activity

Timeline

1

Opening of PMS account (including demat account) for residents.

7 days from receipt of all requisite documents from the client, subject to review of the documents for accuracy and completeness by portfolio manager and allied third party service providers as may be applicable.

2

Opening of PMS account (including demat account) for non-individual clients.

14 days from receipt of all requisite documents from the client, subject to review of the documents for accuracy and completeness by portfolio manager and allied third party service providers as may be applicable.

3

Opening of PMS account (including demat account, bank account and trading account) for non-resident clients.

14 days from receipt of all requisite documents from the client, subject to review of the documents for accuracy and completeness by portfolio manager and allied third party service providers as may be applicable.

4

Registration of nominee in PMS account and demat account.

Registration of nominee should happen along with account opening; therefore turnaround time should be same as account opening turnaround time.

5

Modification of nominee in PMS account and demat account.

10 days from receipt of requisite nominee modification form, subject to review of the documents for accuracy and completeness by portfolio manager and allied third party service providers as may be applicable.

6

Uploading of PMS account in KRA and CKYC database.

10 days from date of account opening (Portfolio Manager may rely on the custodian for updating the same).

7

Whether portfolio manager is registered with SEBI, then SEBI registration number.

At the time of client signing the agreement; this information should be a part of the account opening form and disclosure document.

8

Disclosure about latest networth of portfolio manager and total AUM.

Disclosure of portfolio manager's total AUM - monthly to SEBI Disclosure of latest networth should be done

in the disclosure document whenever there are any material changes.

9

Intimation of type of PMS account – discretionary.

At the time of client signing the agreement; this information should be a part of the account opening form.

10

Intimation of  type of PMS account - non discretionary.

At the time of client signing the agreement; this information should be a part of the account opening form.

11

Intimation to client what discretionary account entails and powers that can be exercised by portfolio manager.

At the time of client signing the agreement; this information should be a part of the account opening form.

12

Intimation to client what non discretionary account entails and powers that can be exercised by portfolio manager

At the time of client signing the agreement; this information should be a part of the account opening form.

13

Copy of executed PMS agreement sent to client.

Within 3 days of client request.

14

Frequency of disclosures of available eligible funds.

All details regarding client portfolios should be shared quarterly (point 26).

15

Issuance of funds and securities balance statements held by client.

This data should be shared on a quarterly basis or upon client request.

16

This data should be shared on a quarterly basis or upon client request.

Within 3 days of PMS and demat account opening.

17

Conditions of termination of contract

At the time of client signing the agreement; this information should be a part of the account opening form.

18

Intimation regarding PMS fees and modes of payment or frequency of deduction

At the time of client signing the agreement; this information should be a part of the account opening form.

9

POA taken copy providing to client.

Within 3 days of client request.

20

Intimation to client about what all transactions can portfolio manager do using POA

At the time of client signing the agreement; this information should be a part of the account opening form.

21

Frequency of providing audited reports to clients

Annual.

22

Explanation of risks involved in investment.

At the time of client signing the agreement;
this information should be a part of the
account opening form.

 

 

23

 

Intimation of tenure of portfolio investments.

Indicative tenure should be disclosed at the time of client signing the agreement; this information should be a part of the account opening form.

 

 

24

Intimation clearly providing restrictions imposed by the investor on portfolio manager.

Negative list of securities should be taken from the client at the time of client signing the agreement; this information should be a part of the account opening form.

 

25

 

Intimation regarding settling of client funds and securities.

Settlement of funds and securities is done by the Custodian. The details of clients’ funds and securities should be sent to the clients in the prescribed format not later than on a quarterly basis.

26

Frequency of intimation of transactions undertaken in portfolio account.

Not later than on a quarterly basis or upon clients' request.

27

Intimation regarding conflict of interest in any transaction.

The portfolio manager should provide details of related party transactions and conflict of interest in the Disclosure Document which should be available on website of portfolio manager at all times.

28

Timeline for providing disclosure document to investor.

The latest disclosure document should be provided to investors prior to account opening and the latest disclosure documents should be available on website of portfolio manager at all times.

29

Intimation to investor about

Within 3 days of PMS and demat account

30

Intimation regarding conflict of interest in any transaction.

The portfolio manager should provide details of related party transactions and conflict of interest in the Disclosure Document which should be available on website of portfolio manager at all times.

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