Procedure related to Portfolio Management Services Account Opening Redemption Management Fees
Account 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 DP 2nd DP 2nd Trading Account in NSE 3rd Trading Account in NSE 3rd Trading Account in BSE 3rd Trading Account in BSE 3rd PMS 4th PMS 4th Liquid 5th Liquid 5th 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 Accounts 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 clients 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 clients 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 clients 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 / Guardians 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 NameSector% ACCCement15% EducompEducation20% Praj IndustriesIndustrial Equipment20% Tata MotorsUtility Vehicle15% Cash-30% Total100% 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 BankAxis / HDFCT + 7Current30035653265 Depositary AccountNBSPLT + 7+ 1 = 8NSDL60001119 Trading AccountNBSPLT + 8 + 1 = 9NSE & BSEPMSA123 PMS AccountNBSPLT + 9+ 1 = 10-1010001 Mutual Fund T + 3LiquidFolio Number 32653265
Corpus Received The given below is subject to all KYC Documents are completed and accounts are activated Cash (Cheque Copy to be attached with the Account 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 attached with the Account Opening 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 clients 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 clients Quarterly 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 T he 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 firstname.lastname@example.org, and send the original redemption request to back office email@example.com 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 01 st 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.
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