Particulars PMS AIF MF: Securities and Exchange Board of India (Mutual Funds) Regulations, 1996
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Amit Kumar AroraParticulars PMS AIF MF: Securities and Exchange Board of India (Mutual Funds) Regulations, 1996
Uploaded by
Amit Kumar AroraParticulars PMS AIF MF
They are regulated by SEBI They are regulated by SEBI Securities and Exchange Board of India
(Mutual Funds) Regulations, 1996
Regulation (Portfolio Managers) (Alternative Investment Funds)
Regulations 1993 Regulations 2012.
Apart from the nonrefundable Apart from the nonrefundable An applicant proposing to sponsor a
application fee of Rs. 1, application fee of Rs. 1, mutual fund (MF) in India must submit
00,000 the applicant is 00,000 the applicant is an application in Form A [first schedule
of the SEBI (Mutual Funds)
required to pay a registration required to pay the registration
Regulations, 1996 (hereinafter,
fee of Rs. 10, 00, 000 at the fee at the time of grant of a referred to as the Regulations)] along
time of grant of a certificate of certificate of registration.
Fees with a non-refundable fee of INR 5
registration. The amount of this registration lakh.
will vary depending upon the
category of AIF.
Category I – Rs. 5,00,000
Category II – Rs. 10,00,000
Category III– Rs. 15,00,000
The registration is valid for Registration will remain valid
three years. And the until the AIF is wound-up.
The validity of
registration is required to be
Registration
renewed at least 3 months
before its expiry.
Types PMS can provide two types of AIF registration can be done in Two types of MF-
services: any of the following 3 I. OPEN ENDED
– Discretionary or categories depending upon II. CLOSE ENDED
– Non-discretionary their investment objectives:
– Category I
– Category II
– Category III
No threshold limit is No of investors for every Each scheme and individual plan(s)
prescribed. Portfolio Manager scheme or fund shall not under the schemes should have a
Number of minimum of 20 investors and no
can have any number of exceed one thousand. single investor should account for
Investors
clients. more than 25% of the corpus of the
scheme/plan(s)
No pooling of investor funds is Pooling of funds is the main
allowed. A separate portfolio of essence of this kind of
Polling of funds
every client is to be investment model.
maintained.
Under PMS model funds of NO segregation is required to Segregated funds must
every client is segregated and be done. be held until contract
Segregation of kept in different demat
Funds
maturity, whereas mutual
accounts.
funds can be sold at any
time.
Every investor is required to Every investor is required to The minimum amount needed
make a minimum investment make a minimum investment to invest in mutual funds is very
Minimum
low. The starting investing in SIP
Investment Limit of Rs. 25, 00,000. of Rs. 1 Crore. (Systematic Investment Plan) with
an amount of Rs. 500 only.
NO corpus requirement in Each scheme is required to
case of PMS. have a corpus of Rs. 20
Corpus
crores. In case of Angel
Requirement
Funds, the requirement is Rs.
10 Crore.
No such provision under PMS. Sponsor/Manager are required The sponsor makes an application
to have some continuing for registration of the mutual
fund and contributes at least 40%
interest in AIF. of the net worth of the AMC.
In case of Category I and II
Sponsor/Manager AIFs, it should be 2.5% of
Contribution corpus or 5 Crore rupees
whichever is less.
Category III AIFs, it should be
5% of corpus or 10 Crore
rupees whichever is less.
As portfolios don’t represent a Close-ended units can be Unlike their
separate instrument, they listed after the closure of such closed ended counterparts, the
Listing units of open ended funds are
cannot be listed. units. not traded on the stock exchange
Here, an investor can withdraw Close-ended units can have in the category of open-ended schemes,
which is the Equity Linked Savings
at their discretion in a manner prescribed lock-in period.
Lock-in period Scheme (ELSS). ELSS are tax-saving
specified under the mutual funds which have a lock-in period
agreement. of 3 years
Tenure of No minimum time is Minimum tenure of Category I
Securities prescribed. Investment in the and II AIF fund or schemes will
portfolio is governed by the be 3 years and can be
agreement executed between extended for a period of 2
the portfolio manager and its years.
client.
