Management Service (PMS) is a professional service rendered for management of
portfolio of others with the help of experts in Investment advisory services. It involves
continuing relationship with client to manage investments with or without discretion for the
client as per his requirements. Portfolio management is an art and requires high degree of
expertise. The SEBI has set out guidelines in which the relationship of the client and the
portfolio manager and the respective rights and duties of both have been set out. The job
of the portfolio manager in managing the client’s fund either on discretionary or nondiscretionary
basis has become challenging and difficult due to the multitude of obligations
laid on his shoulders by the SEBI, respect of their operations, accounts and audit.
Thus, portfolio management has become a complex and responsible job which requires an indepth
training and expertise. The activities of buying and selling of securities in the primary as
well as secondary market are carried Out through the mechanism of stock exchanges. There
has been a substantial growth of capital market in India during the last 25 years. There are 23
stock exchanges in India and more than 9500 listed companies. There were 56,588 capital
issues and the market value of capital. was 12,01,207 crores till 2004-05.
As per SEBI regulations, only those who are registered with SEBI are eligible to operate as
a portfolio manager. They have to pay required licence fees. For this purpose the eligible
persons should have necessary infrastructure with professionally qualified persons and
minimum net worth of ` 50 lakhs. The SEBI has imposed a number of obligations and a
code of conduct on the portfolio managers.

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