The minimum ticket size applicable at the time of opening a new account, is the same as regulatory minimum of Rs. 50 lakhs.

Yes. For investment in listed securities, an investor is required to open a new demat account in his/her own name.

A Portfolio Management Service is a platform created especially for high net-worth individuals to provide customized solutions for their financial investment needs. Investment management solutions in a PMS can be provided in three ways – Discretionary Portfolio, Non-Discretionary Portfolio, Advisory Portfolio.

Portfolio Management Services are regulated by Securities and Exchange Board of India (SEBI) under PMS Regulations.

Portfolio Management Services can be offered only by SEBI registered Portfolio Managers.

Investors can log on to the website of SEBI www.sebi.gov.in for information on SEBI regulations and circulars pertaining to portfolio managers. Addresses of the registered portfolio managers are also available on the SEBI website. Information on monthly reports submitted by Portfolio Managers to SEBI can be accessed at https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doPmr=yes

The portfolio manager provides to the client the Disclosure Document prior to entering into an agreement with the client. It is also made available on our website for anytime access. The Disclosure Document contains the quantum and manner of payment of fees payable by the client for each activity, portfolio risks, complete disclosures in respect of transactions with related parties, the performance of the portfolio manager and the audited financial statements of the portfolio manager for the immediately preceding three years.

As per the Portfolio Management Regulations prescribed by SEBI, we cannot guarantee a specific rate of return. However, the investment objective of any Portfolio Manager is to outperform the benchmark indices.

BMC provides each client with secure account login and password that can be used to access a comprehensive portfolio summary on a daily basis. In addition to the online record of transactions, BMC also provides its clients a monthly portfolio statement.

In addition to the online record of transactions, BMC also provides its clients with a quarterly statement of their portfolio containing the following details, namely:

• Portfolio Holding as on report date.
• Transactions report for the selected period.
• Beneficial interest received during the selected period.
• Expenses incurred in the portfolio of the client during the selected period.
• Details of risk foreseen by the portfolio manager and the risk relating to the securities recommended by the portfolio manager for investment or disinvestment.
• Details of commission paid to the distributor(s) for the client.

BMC Portfolio Management platform ensures that there is absolutely no lock-in of a client’s funds. A client is free to redeem or add-in part or whole from/to his account with BMC.

The tax liability of a PMS investor is the same as that of an investor who accessed the capital markets by himself. Under the PMS scheme, each transaction will be considered as an independent trade, and capital gains will be applied to each transaction depending on the holding period of the stock.

THE DOCUMENTS REQUIRED TO ENABLE YOUR PORTFOLIO MANAGEMENT ACCOUNT AT BMC ARE:

• Account Opening Form
• Address Proof
• Identity Proof
• PAN Card Copy
• Demat Opening Form
• Relevant KYC Forms prescribed by the regulator

The services provided by BMC are governed by the agreement between BMC and the investor. The agreement covers the details as specified in the SEBI Portfolio Manager Regulations. However, additional requirements can be specified by the Portfolio Manager in the agreement with the client. An investor is advised to read the agreement carefully before signing it.

Calculation of performance fee is done considering the high watermark principle.

‘High Water Mark’ is the higher of either ‘corpus investment value’ or ‘highest portfolio value at which fees has been paid historically’.

Illustration of how the High-Water Mark would work: A client’s initial contribution is Rs 1,00,00,000, which rises to Rs 1,25,00,000 in its first year. Therefore, a performance fee would be payable on the Rs 25,00,000 return. Next year, the portfolio value drops to Rs 110,00,000. Therefore, no performance fee is payable. In the third year, the portfolio value rises to Rs 1,40,00,000. A performance fee is payable only on the profit over the previously achieved high watermark, i.e., Rs 1,25,00,000 less performance fee (including taxes).

Clients can withdraw their profits at any time, provided they maintain the prescribed Rs. 50 Lakh minimum limit for PMS investors.

To invest in the Secondary markets in India, NRIs need to obtain permission from the Reserve Bank of India (RBI). In order to do so, a designated bank account has to be opened under the Portfolio Investment Scheme (PIS), and all transactions related to the investment in the secondary markets need to be routed through this account.