Portfolio Management Services (PMS)

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Portfolio Management Services (PMS)
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Procedure related to Portfolio Management Services

• Account Opening
• Redemption
• Management Fees

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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 FO Trading Account with
  NBSPL
• PMS account with NBSPL
• Mutual Fund Account ( KYC Form to be filled )

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Account Opening Process
Bank 1st
DP 2nd
Liquid 5th
Trading Account in NSE 3rd
PMS 4th
Trading Account in BSE 3rd
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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 T7 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.

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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.

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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.

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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.
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Post Account opening and imaginary Model Portfolio
PMS account with NBSPL will be opened accordingly
    Approx TAT to Activate Account   Imaginary Account Number
         
Bank Axis / HDFC T 7 Current 30035653265
Depositary Account NBSPL T 7 1 8 NSDL 60001119
Trading Account NBSPL T 8 1 9 NSE BSE PMSA123
PMS Account NBSPL T 9 1 10 - 1010001
Mutual Fund   T 3 Liquid Folio Number 32653265
Model Portfolio.
Scrip Name Sector
ACC Cement 15
Educomp Education 20
Praj Industries Industrial Equipment 20
Tata Motors Utility Vehicle 15
Cash - 30
Total 100
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.
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Corpus ReceivedThe 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

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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

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Post Execution of Trade

• Shares Purchased
• Redemption from Liquid
• From Mutual Fund to Clients Account T2
• Funds
• From Clients Account to Brokers Account T2
• Securities
• From Brokers Account to Clients Account T2
• Shares Sold
• Securities
• From Clients Account to Brokers Account T1
• Funds
• From Brokers Account to Clients Account T3
• Investment in Liquid
• From clients Account to Mutual Fund T3

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Documents to be provided to clientsQuarterly

• 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

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Redemption

• The 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
  pmsoperations_at_nirmalbang.com, and send the
  original redemption request to back office
  immediately.
• The TAT for major payout would be T 4 day.

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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.

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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 01st 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.

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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 T4 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.

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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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Thank You

• Contact us on
• pmsoperations_at_nirmalbang.com
• Office Number 91 - 022 - 30271569