Who is Portfolio Manager?

A portfolio manager is a person who oversees the management of other people’s money. They are usually compensated based on their ability to make decisions that increase the value of their investment. Portfolio managers can be found in many places, including small investment firms and large banks. In addition, they can also be found within corporations or government agencies that have large amounts of money invested in financial markets.

A portfolio manager is responsible for managing an investment portfolio by buying and selling securities according to specific objectives and constraints. The main objective of a portfolio manager is to maximize returns while minimizing risk.

 

A portfolio manager manages portfolios for individuals, corporations, and institutions such as pension funds, mutual funds, or hedge funds. Portfolio managers may also manage entire investment portfolios for clients with complex needs such as those involved with tax-deferred savings plans or retirement accounts (IRAs).

Documents Required For Portfolio Manager Registration in India

To apply for Portfolio Manager Registration, the applicant should have a degree in finance or commerce from a recognized university. The candidate must also have at least three years of experience in investment management and securities trading.

 

The following documents are required to apply for Portfolio Manager Registration:

  1. Application Form – This form should be filled out by the applicant and uploaded along with the supporting documents.
  2. Attested copies of academic qualification and experience certificate – The original copy of both these documents need to be submitted along with the application form for Portfolio Manager Registration.
  3. Copy of PAN card – If you do not have a PAN card, you can apply for it online through the Income Tax Department website ( https://incometaxindiaefiled.gov.in/ ). Once your PAN card has been issued, you will be able to upload it on our portal too as part of your application form for Portfolio Manager Registration.
  4. Scanned copy of Aadhar Card & Bank Account Statement – You need to upload scanned copies of your Aadhar Card and Bank Account Statement along with your application form for Portfolio Manager Registration so that we can verify them against their respective databases before processing your application further.

The important points regarding the registration process are:

  1. You can apply for registration online using the SEBI website. You can also download the application form from their website and submit it along with all required documents at any branch of the State Bank of India (SBI).
  2. You can also contact your nearest SBI branch for details about the process of registration. The registration process takes about 15-20 days after the submission of all required documents by the applicant.
  3. The primary documents required for registration include:
  1. Form 1A – Application for Registration as an Investment Adviser/Portfolio Manager (Form A-1/1A)
  2. Form 1B – Application for Registration as an Investment Adviser/Portfolio Manager (Form B-1/1B)
  3. Form 2 – Declaration by Applicant Under Section 12(4A) of SEBI Act, 1992 (Regulations 6(2)(e)) (Form 2)
  4. Form 3 – Declaration

 

How to register as a portfolio manager?

The Securities and Exchange Board of India (SEBI) requires all persons who manage or propose to manage an investment portfolio to register with SEBI as Portfolio Managers. This is in accordance with the SEBI (Portfolio Managers) Regulations, 2014.

To begin the registration process, applicants must fill up a form available on SEBI’s website www.sebi.gov.in and submit it along with supporting documents such as a PAN card copy, proof of residence and photograph, etc. The application fee for registration as a Portfolio Manager is Rs 1 lakh to the Securities and Exchange Board of India (Sebi). When Sebi issues a certificate of registration to a portfolio manager, he or she must pay a registration fee of Rs 10 lakhs.

Registered office address: 

  • For individuals: The registered office address must be identical to the residential address mentioned in the application form;
  • For companies: Registered office address must be identical to the registered office address mentioned in the certificate of incorporation or memorandum

There are some compliance issues that you need to know after the registration of your alternate investment fund.

  1. Know Your Investor: You must be aware of your investor. You cannot accept any anonymous investors because it is a violation of the law. You need to know their identity, residential address, and PAN number. You also need to verify their KYC documents before accepting any money from them.
  2. Know Your Client: You must keep a record of all data related to your clients while dealing with them. This includes information like name, email address, residential address, phone number etc. All these details will help you in contacting your client if required in the future.
  3. Know Your Transaction: It is important for you to keep track of all financial transactions made by your investors so that they can be easily verified by SEBI or other regulatory bodies if required later on in the future.
  4. Know Your Investments: It is necessary for an AIF to keep track of its investments throughout the year so that it can report any change in its portfolio at the end of each financial year.