Banking · SEBI Regulations on PMS and Merchant Banking
Consider the following statements regarding Portfolio Management Services (PMS) and Merchant Banking in India: Statement I: A Merchant Banker can underwrite corporate issues but cannot act as lead manager to the same issue. Statement II: Portfolio Management Services can be offered on a discretionary basis where the portfolio manager has authority to invest client funds as per agreed strategy. Statement III: SEBI guidelines mandate that a Portfolio Manager shall not borrow funds on behalf of the client for investing in securities. Statement IV: Banks can offer PMS to their own employees without any minimum investment limit. Which of the statements given above are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Only I and II
- 2Only II and III✓
- 3Only IV
- 4All statements are correct
Correct answer
Only II and III
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