What is a PMS License?

A PMS License issued by the Securities and Exchange Board of India (SEBI) authorizes an entity to provide portfolio management services.

A Portfolio Manager professionally manages investments in securities such as:

• Equity shares
• Bonds
• Mutual funds
• Other permitted financial instruments

The investment strategy is designed according to the client’s financial objectives and risk profile.

Types of Portfolio Management Services

Discretionary Portfolio Management

Under discretionary PMS, the portfolio manager independently manages investments and takes investment decisions on behalf of clients.

Non-Discretionary Portfolio Management

In non-discretionary PMS, the portfolio manager provides recommendations, but final investment decisions remain with the client.

Active Portfolio Management

The portfolio manager actively researches and manages investments with the objective of generating returns higher than market benchmarks.

Passive Portfolio Management

This strategy focuses on replicating market indices and maintaining a portfolio similar to benchmark performance.

Benefits of Starting PMS Business

• Opportunity to manage investments for HNI clients
• Build a professional investment management business
• Earn management fees and performance-based income
• Provide customized investment solutions
• Operate under SEBI-regulated framework

Eligibility Criteria for PMS License Registration

To obtain SEBI PMS Registration, the applicant must fulfill the following requirements:

• Applicant must be a body corporate
• Minimum net worth of ₹5 crore
• Principal Officer must have relevant experience in portfolio management, securities market, or fund management
• Minimum qualified and experienced personnel as prescribed by SEBI
• Applicant must satisfy SEBI Fit and Proper Person criteria

Documents Required for PMS License

The major documents required include:

• Certificate of Incorporation
• PAN Card
• Memorandum of Association (MOA)
• Articles of Association (AOA)
• Form A Application
• Details of Principal Officer
• Qualification and Experience Documents
• Financial Statements
• Other documents required by SEBI

Process for Obtaining PMS License

Step 1: Submit Application to SEBI

The applicant must file Form A along with required documents and prescribed details.

Step 2: Payment of Application Fee

The applicable application fee is submitted along with the registration application.

Step 3: SEBI Review Process

SEBI examines the application, documents, infrastructure, and eligibility requirements.

Step 4: Grant of PMS Registration

After approval and payment of registration fees, SEBI issues the Portfolio Management Services Certificate of Registration.

Why Choose CA Anytime for PMS License Registration?

CA Anytime provides complete support for obtaining a SEBI Portfolio Management License, including:

✔ PMS registration consultation
✔ Eligibility evaluation
✔ Documentation assistance
✔ SEBI application filing
✔ Regulatory compliance support
✔ Process coordination

Our experts help investment professionals and businesses establish a compliant Portfolio Management Services business in India.