As per SEBI (Portfolio Managers) Regulations, what is the minimum investment amount a client must commit to avail Portfolio Management Services (PMS), other than for accredited investors or specified exceptions such as Employee Welfare Trusts?

[ A ]Rs. 50,00,000[ CORRECT ]

[ B ]Rs. 5,00,000

[ C ]Rs. 10,00,000

[ D ]Rs. 1,00,00,000

Takeaway

Option A is correct: Rs. 50,00,000.

Derivation

SEBI (Portfolio Managers) Regulations require a minimum investment of Rs. 50,00,000 per client to avail Portfolio Management Services — this threshold was raised from the earlier Rs. 25,00,000 level. The minimum-ticket-size rule exists to keep PMS positioned as a service for high-net-worth investors who can absorb concentrated, discretionary portfolio risk, distinct from the pooled, small-ticket structure of mutual funds.

Why the others fail

B — Rs. 5,00,000

Rs. 5,00,000 is well below SEBI's mandated PMS entry threshold and does not reflect the current regulation.

C — Rs. 10,00,000

Rs. 10,00,000 was never the PMS minimum — this figure is sometimes confused with unrelated regulatory thresholds elsewhere in securities law.

D — Rs. 1,00,00,000

Rs. 1,00,00,000 overstates the mandated minimum — SEBI's actual PMS threshold, Rs. 50,00,000, is half this amount.