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Portfolio Management Services (PMS)
| Date post: | 29-Mar-2015 |
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Portfolio Management Services (PMS)
Procedure related to Portfolio Management Services
Account Opening
Redemption
Management Fees
Account Opening ProcedureAccount Opening Procedure
Accounts will be activated in following sequence
Bank Account
NSDL - DP account with Nirmal Bang Sec. Pvt. Ltd (NBSPL)
NSE & BSE Equity and F&O Trading Account with NBSPL
PMS account with NBSPL
Mutual Fund Account ( KYC Form to be filled )
Bank 1st
Bank 1st
DP2ndDP2nd
Trading Account in NSE3rd
Trading Account in NSE3rd
Trading Account in BSE3rd
Trading Account in BSE3rd
PMS4th
PMS4th
Liquid5th
Liquid5th
Account Opening Process
Bank Account Opening Procedure An IPV (In-Person Verification) of the client will be done by bank official
either the client needs to visit the nearest branch of the Bank or a RM from the Bank will visit the clients place for in person
verification.
Client will have to issue a Rs. 5000/- cheque from activating his PMS Bank account
TAT to activate Bank Account will be T+7 Working days
Account’s will be Activated in Mumbai at Fort Branch.
No Debit / Credit Card will be issued in this account
Nominal Charges will be levied by the bank on the following account.
No cheque book will be issued from this account.
Bank Account will be deactivated at the time of full redemption.
Corporate Action will be directly credited to the client’s Bank account.
POA would be in favor of NBSPL for operating the account.
Bank, DP, Trading & PMS Account
Opening
AOF has to be filled in by the client for Opening Bank, DP and Trading account. All instructions provided on the account opening form has to be followed. Incomplete account opening form will be cancelled and returned back to Clients or RM.
DP account will be opened only after the Bank Account is activated. DP Account requires details of client’s Bank account number and MICR code so that the Corporate Action are automatically credited to the Bank Account.
Trading Account is activated only after DP and Bank account are operational.
PMS account will require complete details of all Accounts, Bank account will be mapped to client’s PMS account from where inflow and outflow of funds will take place, pay in and payout of securities will be done in DP Account and finally trading account from where all trades would be executed. Therefore PMS account requires to be activated only after all the accounts are active.
PMS Account Opening & Mutual Fund KYC
Client would also require to sign the KYC form which is presently a mandatory requirement from Mutual Funds. All funds lying idle in clients bank account would be invested in Liquids funds - Dividend Reinvestment to earn a Tax free income.
In case the client has already been allotted with KYC number then the client needs to provide it to back office with the account opening form.
Trading in PMS will resume only after all the above accounts are activated.
Client cannot do personal trading from the above allotted client code.
Client would not be allowed to transfer any personal holding to their DP account. Any scrip received in DP will not be returned back to client without an official letter.
Important Tips on Account Opening - PMS
For All
Account opening form needs to be complete in all respect
Pan Card Required – In case of Non Individual Account then it is required for all Authorized Signatory
too.
Latest Address Proof Required – In case of Non Individual Account then it is required for all Authorized
Signatory too.
Rs. 5000/= Cheque required and to be issued in favor of Self
No Date to be written on Agreement Pages.
Nomination – Nominee / Guardian’s Signature compulsory.
Latest Photograph required.
RM Details to be mentioned on the Account opening form - Compulsory.
VERY IMPORTANT
Checklist for Documents Required is provided on the PMS Account Opening Form and which needs to be followed
strictly
Before sending the account opening form, kindly re-confirm with the Checklist provided on the Account opening
form.
PMS account with NBSPL will be opened accordingly
Model Portfolio.
Scrip Name Sector %
ACC Cement 15%
Educomp Education 20%
Praj Industries Industrial Equipment 20%
Tata Motors Utility Vehicle 15%
Cash - 30%
Total 100%
Corpus In
The Cheque for Rs. 5000/= received from client at the time of Account Opening
with the AOF will be considered as Corpus-IN and entered in system as investment.
Post Account opening and imaginary Model Portfolio
Approx TAT to Activate Account
Imaginary Account Number
Bank Axis / HDFC T + 7 Current 30035653265
Depositary Account
NBSPL T + 7+ 1 = 8 NSDL 60001119
Trading Account NBSPL T + 8 + 1 = 9 NSE & BSE
PMSA123
PMS Account NBSPL T + 9+ 1 = 10 - 1010001
Mutual Fund T + 3 Liquid Folio Number 32653265
Corpus ReceivedThe given below is subject to all KYC Documents are completed and
accounts are activated
Cash (Cheque Copy to be Cash (Cheque Copy to be attached with the Account attached with the Account
Opening Form)Opening Form) Corpus Cheque given by client
needs to be deposited in Client new Bank Account at Axis Bank as soon as the Bank account is activated.
PMS account will be generated only after funds are credited in Client Bank Account.
Information will be given to Fund Manager after PMS account is Activated.
In case the funds received from client are not from the clients personal account then the funds will be returned back to the same account from where the funds were received.
Securities (DP Statement and DIS to be Securities (DP Statement and DIS to be attached with the Account Opening attached with the Account Opening
Form)Form) RM should take official permission
from Fund Manager on mail before transferring shares in client new DP account.
Clients Account will be activated only after the value of the shares is more that 5 Lacs.
Back office will give information by email to Fund Manager as soon as the PMS account is activated
Fund Manager will retain those shares available in Model Portfolio and sell the other shares in Market and maintain portfolio according to Model Portfolio.
In case the value of Securities given by client is less than 5 Lacs then the securities will be transferred back to clients DP Account from where they were transferred
Process to be followed for Trading in PMS
Funds transferred by client will be credited to client’s bank account. Cheque given as corpus will be directly deposited in the clients account and will be considered as Corpus in / Investment in PMS.
A Model portfolio will be prepared by Fund Manager according to the appetite / Portfolio selected by the client in PMS.
Fund Manager will execute order in clients account as per the Model Portfolio.
Extra Activity required for ND PMS Account
Fund Manager will give a investment call to the client on recorded line and will take confirmation on phone before executing orders in clients account.
Or Client will directly give orders in Writing to Fund manager or send Fax from his registered fax number.
Client can also send e-mail to Fund Manager from his registered email id.
Trades will be executed in clients Trading code after the confirmation is received from client on Phone / Fax / Email / Writing
Post Execution of Trade Shares Purchased
Redemption from Liquid From Mutual Fund to Clients Account T+2
Funds From Clients Account to Brokers Account T+2
Securities From Brokers Account to Clients Account T+2
Shares Sold Securities
From Clients Account to Brokers Account T+1 Funds
From Brokers Account to Clients Account T+3 Investment in Liquid
From clients Account to Mutual Fund T+3
Documents to be provided to clientsQuarterly
The given below reports will be couriered on the
clients registered address on Quarterly basis and the
acknowledgement will be retained.
Portfolio Appraisal Dividend Report Expense Report Gain / Loss Statement Transaction Statement
Redemption
The client can opt for Redemption by just signing the redemption request
form. The form needs to be signed as mode selected in the account opening
form. The form can be given to Relationship Manager or can be directly
sent to PMS Department.
The client can either give a
Partial Redemption in Cash
Partial Redemption in Securities.
Full Redemption in Cash
Full Redemption in Securities
The redemption will only be credited in the clients personal account. A
bank or DP proof has to be provided with the redemption request form.
RM should scan the request letter, mail a copy to
[email protected] , and send the original redemption request to
back office immediately.
The TAT for major payout would be T + 4 day.
Full Redemption – Cash
In Case of Full Redemption the fund manager would not buy
any Securities in Clients Account and will start selling Shares
in his account.
In case of full redemption the client would also require to give
a letter to close his Bank, DP and Trading account too.
The charges levied during the tenure of account to the clients
DP, Bank and trading account will be directly debited from
clients PMS account. The full redemption will be released to
client only after the outstanding payment is cleared.
The client will receive all his full and final statement of
account at his correspondence address after the final
payment is released.
Partial Redemption - Cash
Kindly note in case of Partial redemption, the AUM of client should not fall
below 5 lacs. For example
AUM in client account on 01st August 2008 is Rs. 6.25 lacs then the maximum
partial redemption allowed to client will be Rs. 1.25 lacs. Redemption request
will be treated as cancelled if the client demand Rs. 2 lacs. In such case the client
has to either give a full redemption or a partial redemption of Rs. 1.25 lacs.
Management Fees that would be debited to client would be on the amount redeemed.
The Fund given to client would be deducted from Corpus and not from Profit earned.
The cheque would be released from clients Bank account and would be given in favor
of clients account only, No third party cheque can be released from clients account.
Client has to use personal account to transfer funds to any third party. PMS Bank
account cannot be utilize for giving third Party cheque.
Full Redemption – Securities A DP proof has to be provided by the client at the time of full redemption.
Buying and Selling Freeze will be marked in clients PMS account and
securities will be released after 4 working days when all securities are
received from market.
The back office will require at least T+4 days to generate such request.
Securities released from client account would be debited at previous day
closing price and would be considered as Corpus Out entry.
In case of full redemption the client would require to give a letter to close his
Bank, DP and Trading account too.
Outstanding Expenses in client account can be recovered by selling securities
from the clients account.
The charges levied during the tenure of account to the clients DP, Bank and
trading account will be directly debited from clients Bank account. The full
redemption will be released to client only after the outstanding payment is
cleared.
The client will receive all his full and final statement of account at his
correspondence address after the final payment is released.
Partial Redemption - Securities Particular security freeze will be marked in the system as soon as such
request is received.
Securities released from client account would be debited at previous day
closing price and would be considered as Corpus Out entry.
No Capital Gain report will be generated for such entry.
Client needs to calculate such gain through his CA or consider it as Asset in
his balance sheet and the purchase date and purchase price as securities
purchased value.
Client needs to mention the securities required in the partial redemption
letter. PMS department would not be liable if the securities are being sold in
the market on the day the redemption request was received.
Scrip / Cash will only be released after
Original Letter is received by Back office
Signature given on the redemption Letter matches with Signature given
on the account opening form.
