Sebi (Portfolio Managers) Regulations, 2020, were notified on January 16. In addition, certain changes to the regulatory framework for portfolio managers have been mandated,
"As provided in Regulation 22 (11) of the PMS Regulations, no upfront fees shall be charged by the portfolio managers, either directly or indirectly, to the clients," Sebi said.
According to the regulator, brokerage at actuals should be charged to clients as expense.
"Operating expenses excluding brokerage, over and above the fees charged for Portfolio Management Service, shall not exceed 0.50 per cent per annum of the client's average daily Assets under Management (AUM)," it added.