Understanding the fee structure for Portfolio Manager registration is essential for any entity seeking to enter the portfolio management business. This article provides a complete breakdown of all fees payable under the SEBI (Portfolio Managers) Regulations, 2020.
Overview of Fee Structure
The financial commitments for registration are categorized into application, initial, and renewal fees.
| Fee Type | Amount |
|---|---|
| Application Fee | ₹1 Lakh |
| Registration Fee (Initial Grant) | ₹10 Lakhs |
| Renewal Fee (Every 3 Years) | ₹5 Lakhs |
Application Fee
Amount
Every portfolio manager shall pay a non-refundable fee of one lakh rupees along with the application for grant of certificate of registration.
When Payable
The application fee is payable at the time of submitting the application in Form A.
Nature
The application fee is non-refundable. Even if the application is rejected, the fee is not returned.
Registration Fee
Amount
Every portfolio manager shall pay a sum of ten lakh rupees as registration fees at the time of the grant of certificate by SEBI.
When Payable
The registration fee shall be paid by the portfolio manager within fifteen days from the date of receipt of intimation from SEBI under regulation 10.
Mode of Payment
The fee shall be paid by way of direct credit into the bank account through NEFT/RTGS/IMPS or online payment using the SEBI Payment Gateway or any other mode as may be specified by SEBI from time to time.
Renewal Fee
Amount
A portfolio manager who has been granted a certificate of registration, to keep its registration in force, shall pay fee of five lakh rupees every three years.
When Payable
The renewal fee must be paid within three months before expiry of the block period for which fee has been paid.
Validity
The certificate will be valid for 3 years, with renewal charges of ₹5 lakh.
Mode of Payment
The fee shall be paid by way of direct credit into the bank account through NEFT/RTGS/IMPS or online payment using the SEBI Payment Gateway or any other mode as may be specified by SEBI from time to time.
Consequences of Failure to Pay Fees
Suspension of Certificate
Where a portfolio manager fails to pay the fees as provided, SEBI may suspend the certificate, whereupon the portfolio manager shall forthwith cease to carry on the activity as a portfolio manager for the period during which the suspension subsists.
Grace Period
SEBI may on sufficient cause being shown allow the portfolio manager to pay such fees at any time before the expiry of one month from the date on which such fees become due.
Summary of Fee Payments
| Fee Type | Amount | Timing | Nature |
|---|---|---|---|
| Application Fee | ₹1 Lakh | With application | Non-refundable |
| Registration Fee | ₹10 Lakhs | Within 15 days of intimation | One-time |
| Renewal Fee | ₹5 Lakhs | Every 3 years | Recurring |
Expert Legal Guidance
Anuj Desai & Associates provides expert legal advisory services on fee compliance for portfolio managers. Our securities law experts help clients understand fee requirements, ensure timely payment, and maintain registration validity. Contact us for guidance on fee compliance and other regulatory matters.