How to Become a Portfolio Manager in India | Step-by-Step Guide

At Taxation Consultancy, we frequently receive inquiries from entrepreneurs, financial professionals, and corporate entities about how to become a portfolio manager or how to start PMS services in India registered with SEBI.
If you want to build a business in portfolio management, it’s essential to understand SEBI PMS regulations, documentation, eligibility, Portfolio Manager Registration, and the process to get your PMS license.

Our experts make the entire process straightforward — from applying for PMS registration and setting up infrastructure to obtaining your portfolio certificate and meeting all SEBI guidelines for portfolio management.

 If you’re a registered MSME or planning to apply, you can explore the MSME Registration Process to strengthen your business structure before starting PMS.

For regulatory clarity, always refer to official SEBI Guidelines for Portfolio Management to stay compliant with the latest norms.

Our experts assist MSMEs and corporates in fulfilling all SEBI registration and government compliance requirements seamlessly.

Businesses registered under MSME enjoy additional credibility when applying for Portfolio Manager Registration or other SEBI-related services.

To understand more about integrating government certifications with SEBI approvals, visit the MSME Government Portal.

At Taxation Consultancy, we connect your MSME setup with regulatory approvals and financial licensing, ensuring complete compliance.

Before applying for Portfolio Manager Registration, it’s important to know what Portfolio Management Services (PMS) involve. PMS refers to professional investment management for high-net-worth individuals who invest ₹50 lakhs or more.

These services cover equities, bonds, mutual funds, and ETFs — all managed under contractual agreement according to SEBI PMS Regulations.

Only a body corporate (not individuals) can apply for PMS registration. Currently, about 400 SEBI-registered managers in India operate under SEBI guidelines for portfolio management and maintain strict regulatory compliance.

If you are exploring how to become a portfolio manager in India, this structure is the first mandatory requirement to obtain a valid PMS license.

As per SEBI PMS Regulations 2020, only companies or LLPs can apply for Portfolio Manager Registration. The entity must maintain a net worth of ₹5 crore and comply with the following eligibility criteria:

• The Principal Officer must have at least five years of experience in investment or portfolio management and hold relevant professional qualifications (MBA, CA, CFA, CS).
  
  
• They must clear NISM Series XXI-A and XXI-B certifications to qualify for the PMS license.
  
  
• A Compliance Officer and at least one additional employee with two years of relevant experience are mandatory.
  
  
• The company must have proper infrastructure, including office space, hardware, and operational systems.
  
  
• The MOA should include portfolio management as a main business objective.
  
  
• A custodian and broker tie-up is also compulsory under SEBI guidelines for portfolio management.
  
  

Our team assists you at every stage — from legal setup and documentation to the final pms registration approval by SEBI.

To help you understand how to become a portfolio manager, it’s crucial to know the three PMS models allowed under SEBI PMS regulations:

1. Discretionary PMS – The manager makes independent investment decisions.
   
   
2. Non-Discretionary PMS – Decisions are made as per client instructions.
   
   
3. Advisory PMS – The manager only provides advice; clients execute trades themselves.
   
   

Each structure offers unique flexibility, allowing portfolio managers to customize investment strategies for high-net-worth clients and institutions.

To apply for Portfolio Manager Registration and get your PMS license, the following documents are mandatory:

• Certificate of Incorporation, MOA & AOA
  
  
• Board Resolution authorizing PMS activity
  
  
• NISM certifications of Principal Officer
  
  
• Disclosure document and business plan
  
  
• Draft client agreement and risk profiling documents
  
  
• Banker’s report and CA-certified net worth statement
  
  
• Last three years’ audited financials
  
  
• Custodian intent letter and broker details
  
  
• Grievance redressal and compliance framework
  
  

Our legal experts review each document carefully to ensure there are no discrepancies during pms online registration with SEBI.

To successfully obtain your PMS license, here’s the process we follow for our clients:

Step 1: Document Preparation – Draft all required documents as per SEBI PMS regulations.

Step 2: Register on SEBI SiPortal and pay the ₹1,00,000 non-refundable fee.

Step 3: File Form A with all supporting documentation.

Step 4: Respond promptly to SEBI’s queries or clarifications.

Step 5: SEBI may conduct a physical inspection to verify your setup.

Step 6: After approval, pay ₹10,00,000 and receive the official Portfolio Manager Registration certificate.

Once you complete these steps, your firm is recognized as a SEBI-registered PMS provider in India.

When applying for PMS registration, SEBI charges the following fees:

• ₹1,00,000 non-refundable application fee
  
  
• ₹10,00,000 payable before certificate issuance
  
  
• ₹5,00,000 for renewal every three years
  
  

We ensure you meet every SEBI guideline for portfolio management, helping you avoid rejection due to payment or documentation errors.

 Once your portfolio certificate is issued, you must comply with SEBI’s ongoing obligations:

• Maintain ₹5 crore minimum net worth.
  
  
• Obtain prior SEBI approval before any ownership change.
  
  
• File quarterly client reports and respond to grievances within 21 days.
  
  
• Avoid guaranteed returns or misleading performance claims.
  
  
• Maintain a minimum investment value of ₹50 lakh per client.
  
  
• Report performance using the Time-Weighted Rate of Return (TWRR) method.
  
  

Taxation Consultancy also provides end-to-end compliance management to help maintain your active PMS license and meet all PMS eligibility conditions.

Common reasons for SEBI rejection include:

• Missing or incomplete documentation
  
  
• Failure to meet pms eligibility norms
  
  
• Incorrect or missing MOA clause
  
  
• Inadequate infrastructure or staffing
  
  
• Pending litigation involving securities
  
  
• Incorrect experience or missing certifications
  
  

We eliminate these issues by preparing a flawless pms online registration application that fulfills all regulatory criteria.

We specialize in SEBI-regulated registrations, including Portfolio Manager Registration. Our assistance covers:

• Drafting and updating your MOA and AOA
  
  
• Preparing disclosure documents and agreements
  
  
• Net worth certification and custodian tie-ups
  
  
• Filing and follow-up for pms registration
  
  
• Replying to SEBI queries and inspection preparation
  
  
• Setting up your post-registration compliance systems
  
  

Our support ensures your journey from planning to SEBI approval is quick, compliant, and fully transparent — making you eligible to operate under the portfolio management scheme SEBI.

Understanding how to become a portfolio manager and start your own SEBI-registered PMS requires precision, planning, and compliance.
Taxation Consultancy provides complete assistance — from eligibility evaluation to the issuance of your portfolio certificate and beyond.

Whether you’re an investment professional, entrepreneur, or corporate entity, our team ensures that your pms registration is completed accurately and that your PMS license remains valid under SEBI PMS regulations.

1. Who can apply for Portfolio Manager Registration?
Only a company or LLP with a ₹5 crore net worth can apply under SEBI PMS regulations.

2. How to become a portfolio manager in India?
Register a company, meet PMS eligibility, complete PMS online registration on SEBI’s portal, and get approval.

3. What is the minimum client investment for PMS?
As per SEBI guidelines for portfolio management, the minimum investment is ₹50 lakh.

4. What is the validity of a PMS license?
The PMS license is valid for three years and must be renewed with SEBI.

5. What are the SEBI fees for PMS registration?
₹1,00,000 (application) + ₹10,00,000 (registration) + ₹5,00,000 (renewal every 3 years).

6. Can individuals apply for PMS registration?
No. Only registered body corporates are eligible for Portfolio Manager Registration.

7. How does Taxation Consultancy help?
We manage your PMS registration, documentation, compliance setup, and SEBI filing from start to finish.