The Securities and Exchange Board of India (SEBI) has asked portfolio managers to ensure that the first single lump-sum investment amount received as funds or securities from clients should not be less than Rs5 lakh as prescribed in the SEBI Regulations.
This has been done to bring about greater uniformity, clarity and transparency, SEBI said in a circular.
To ensure compliance with regulation, SEBI has asked portfolio managers to disclose the performance of portfolios grouped by investment category for the past three years in the SEBI-prescribed format.
Portfolio managers should also ensure that the disclosure document is given to all clients along with the account opening form at least two days in advance of signing of the agreement, SEBI said.
In order to ensure that the clients have access to updated information about the portfolio manager, portfolio managers should place the latest disclosure document on their website, wherever possible.
Portfolio managers should not organise investment portfolios as `schemes' akin to mutual fund schemes while marketing their services to clients, it said.