Sebi notifies norms, scraps upfront fees for portfolio management services

The Securities and Exchange Board of India (Sebi) notified its norms for portfolio managers on Tuesday, doubling the minimum investment amount to be taken from clients to Rs 50 lakh and asking such managers to raise their net worth to Rs 5 crore within three years of notification.

Under portfolio management services (PMS), portfolio managers offer customised investment advice to clients, typically high net worth individuals.

The regulator has disallowed portfolio managers from charging upfront fees from clients, either directly or indirectly.

In 2018, Sebi had done something similar for mutual funds (MFs), banning upfront commission, and asking the industry