Portfolio managers cannot impose lock-in for clients' investments: Sebi

"Portfolio managers cannot impose a lock-in on the investment of their clients.However, a portfolio manager can charge applicable exit fees from the client for early exit," Sebi noted

Markets regulator Sebi on Tuesday said portfolio managers cannot impose a lock-in period for investments of their clients but can charge fee for early exits.

A portfolio manager is a body corporate, which pursuant to a contract with a client, advises or directs or undertakes on behalf of the client the management of a portfolio of securities or funds.

The watchdog said portfolio manager will charge a fee as per the agreement with the client for rendering portfolio management services. The fee so charged may be a fixed amount or a performance-based fee or a combination of both.

However, no