Securities And Exchange Board Of India - Subsection
Section 14(2) in Securities and Exchange Board of India (Portfolio Managers) Regulations, 1993
(2)(a)The portfolio manager shall provide to the client, the Disclosure Document as specified in Schedule V, along with a certificate in Form C as specified in Schedule I, at least two days prior to entering into an agreement with the client as referred to in sub-regulation (1).(b)The Disclosure Document, shall inter alia contain the following -(i)the quantum and manner of payment of fees payable by the client for each activity for which service is rendered by the portfolio manager directly or indirectly (where such service is out sourced);(ii)portfolio risks;(iii)complete disclosures in respect of transactions with related parties as per the accounting standards specified by the Institute of Chartered Accountants of India in this regard;(iv)the performance of the portfolio manager:Provided that the performance of a discretionary portfolio manager shall be calculated using weighted average method taking each individual category of investments for the immediately preceding three years and in such cases performance indicators shall also be disclosed;(v)the audited financial statements of the portfolio manager for the immediately preceding three years.(c)The contents of the Disclosure Document shall be certified by an independent chartered accountant.(d)The portfolio manager shall file with the Board, a copy of the Disclosure Document before it is circulated or issued to any person and every six months thereafter or whenever any material change is effected therein whichever is earlier, along with the certificate in Form C as specified in Schedule I.
