How To Start Portfolio Management Services In India?

Portfolio Management Services (PMS) are popular among High Net-worth Individuals (HNIs), and due to this, many people often ask how to start portfolio management services in India.

Before learning the procedure of starting a PMS company, you must know about PMS. The meaning of PMS is an exclusive service for High Net-worth Individuals (HNIs).

In this service, fund managers build a diversified portfolio to help clients profit from the stock market. A portfolio can consist of share, commodity, currency, derivative, and other financial securities except for mutual funds.

Once, you have cleared your mind regarding Is PMS A Good Investment?, then you should proceed further to know about how you can start to invest in Portfolio Management Services in India.

Must be wondering about Who Can Provide Portfolio Management Services?– It is PMS houses that provide the PMS services to their clients. By analyzing their past trends and performances, that is how can an investor invests in Portfolio Management services?.

This industry is SEBI regulated and thus follows Portfolio Management Services SEBI regulations.

The minimum investment for PMS is ₹50 lakhs, and there is a lot that you can learn about the portfolio management services domain.

With PMS’s basics clear, let’s talk about how to start portfolio management services in India.

How to Start Portfolio Management Company in India

For a more straightforward understanding, we’ll list the steps.

• Register the company with SEBI (Securities and Exchange Board of India).
• Pay non-refundable ₹1 lakh as an application fee. This could be seen as PMS charges too, although there are other sorts of fees too.
• This fee is paid as a demand draft (in favour of SEBI) in Mumbai.
• The application form has Form A.
• A few additional information also are to be submitted. This information can be accessed on the official website.
• Post the form to the Head Office of SEBI in Mumbai. 

Some other requirements to be met are:

• The base net worth of the professional portfolio manager should be ₹5 crores.
• To receive the Certificate of Registration, the applicant has to pay ₹10 lakhs as a registration fee.
• This Certificate is valid for three years.
• For the renewal of this certificate, the applicant should apply for it three months before its expiry.
• The renewal fee for registration is ₹5 lakhs.

The regulatory body formulates all these PMS SEBI rules and regulations.

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Conclusion

The query of how to start portfolio management services in India is common among independent fund managers. It is an excellent opportunity for them to expand their work base and increase their income as well.

We hope that this article answered your query about how to start portfolio management services in India.

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