Who can invest in PMS?
Almost any investor with KYC, a PAN and ₹50 lakh, from an HUF to a foreign portfolio investor.
PMS is open to almost any kind of investor: resident and non-resident individuals, HUFs, companies, partnership firms, LLPs, trusts, associations of persons, bodies of individuals and foreign portfolio investors. What every one of them needs is KYC, a PAN, and at least ₹50 lakh unless an exception applies.
The best evidence for the list is SEBI's own reporting format: every portfolio manager reports each client to SEBI under one of a fixed set of client categories.
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Client categories SEBI recognises
From the client-level reporting format in SEBI's Master Circular for Portfolio Managers (July 2025).
Resident individual
Typical example at a wealth desk
A doctor in Pune investing ₹75 lakh
What to check before onboarding
KYC, PAN, risk profile; joint holders if any
Non-resident individual
Typical example at a wealth desk
An NRI in Dubai investing from savings in India
What to check before onboarding
Resident status, the right bank and demat accounts (see the NRI page)
HUF
Typical example at a wealth desk
A family HUF with ₹60 lakh of listed shares
What to check before onboarding
Karta's authority to sign for the HUF
Company (resident or non-resident)
Typical example at a wealth desk
A private limited company parking surplus cash
What to check before onboarding
Board authority to invest, authorised signatories
Partnership firm or LLP
Typical example at a wealth desk
A CA firm investing partners' capital
What to check before onboarding
Authority under the partnership deed or LLP agreement
Trust
Typical example at a wealth desk
A family trust or a charitable trust
What to check before onboarding
Trust deed powers to invest in securities and to appoint a portfolio manager
Association of persons or body of individuals
Typical example at a wealth desk
An investment club or group of co-owners
What to check before onboarding
Constitution documents and who may sign
Foreign portfolio investor (FPI)
Typical example at a wealth desk
A registered FPI using an Indian manager
What to check before onboarding
Regulation 25 expressly allows FPIs to use PMS
| Category | Typical example at a wealth desk | What to check before onboarding |
|---|---|---|
| Resident individual | A doctor in Pune investing ₹75 lakh | KYC, PAN, risk profile; joint holders if any |
| Non-resident individual | An NRI in Dubai investing from savings in India | Resident status, the right bank and demat accounts (see the NRI page) |
| HUF | A family HUF with ₹60 lakh of listed shares | Karta's authority to sign for the HUF |
| Company (resident or non-resident) | A private limited company parking surplus cash | Board authority to invest, authorised signatories |
| Partnership firm or LLP | A CA firm investing partners' capital | Authority under the partnership deed or LLP agreement |
| Trust | A family trust or a charitable trust | Trust deed powers to invest in securities and to appoint a portfolio manager |
| Association of persons or body of individuals | An investment club or group of co-owners | Constitution documents and who may sign |
| Foreign portfolio investor (FPI) | A registered FPI using an Indian manager | Regulation 25 expressly allows FPIs to use PMS |
Sub-categories that change the rules
SEBI's format also tags some clients with a sub-category, because special rules apply to them.
- check_circleAccredited investor: the ₹50 lakh minimum can be waived, subject to disclosure and agreed terms.
- check_circleLarge value accredited investor: an accredited investor with an agreement for at least ₹10 crore; further relaxations apply.
- check_circleCo-investment client: investors served by a Co-investment Portfolio Manager alongside its AIFs.
- check_circleEligible investment fund: offshore funds served by an 'eligible fund manager' under a separate chapter of the regulations.
Account opening timelines
SEBI's Investor Charter for PMS sets these limits, counted from receipt of all required documents.
- 1
Resident individuals: 7 days
Including the demat account.
- 2
Non-individual clients: 14 days
Companies, firms, trusts and similar entities, including the demat account.
- 3
Non-resident clients: 14 days
Including the demat, bank and trading accounts.
Free account, this exam preselected.
Eligible is not the same as suitable
A ₹50 lakh HUF can legally open a PMS account. That does not make a concentrated small-cap approach right for a family that needs the money for a wedding in 18 months. Eligibility is the manager's legal check; suitability is the conversation you have with the client, recorded in their risk profile.
How XXI-A tests this
Questions are usually 'which of the following can invest in PMS', with HUF, NRI, company or trust as the right answer and a distractor that sounds restrictive (for example 'only resident individuals'). Some pair entity type with a rule: an FPI can avail PMS (Regulation 25), an NRI needs the correct account set-up, an accredited investor may be exempt from the ₹50 lakh minimum.
FAQs
Who can invest in PMS in India?expand_more
Resident and non-resident individuals, HUFs, companies, partnership firms, LLPs, trusts, associations of persons, bodies of individuals and foreign portfolio investors, subject to KYC and the ₹50 lakh minimum.
Can an NRI invest in PMS?expand_more
Yes. Non-resident individuals are a client category in SEBI's reporting format. Account opening, including the bank and trading accounts, has a 14-day timeline under the Investor Charter.
Can a company or trust open a PMS account?expand_more
Yes, both are recognised client categories. The manager will check that the board resolution or trust deed authorises the investment.
Can an HUF invest in PMS?expand_more
Yes. HUF is a separate client category, and the karta signs on the HUF's behalf.