- The new norms governing Portfolio Managers services, doubling a portfolio manager's net worth requirement to ₹5 crore, giving the existing ones three years to meet the revised norms.
- The minimum investment amount for investors in Portfolio Management Schemes (PMS) is hiked from ₹25 lakh to ₹50 lakh.
- Portfolio managers offering non-discretionary or advisory services to clients may invest or provide advice for investment up to 25% of the assets under management of such clients in unlisted securities, in addition to the securities permitted for discretionary portfolio management.
- The new norms for portfolio managers are aimed at curbing mis-selling and weeding out dubious operators. Portfolio managers have in the recent past attracted criticism and scrutiny over misguiding their clients, who are mostly high net worth individuals.
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