‘PMS clients will have to write in their own handwriting that they understand fees and charges’

SEBI has issued an informal guidance to Motilal Oswal AMC in which it has clarified that PMS investors will have to write in their own handwriting that they have understood fees and charges. In addition, they need to separately sign the annexure on fees and charges. This process can also be done electronically, said SEBI.

In a note, SEBI said, “New clients shall be required to separately sign the annexure on fees and charges and add in their own handwriting that they have understood the fees/charge structure.”

This has come after the AMC approached SEBI with a request to issue a pre-typed declaration to expedite the electronic onboarding process. Since the digital onboarding has to be done within 3 minutes, the AMC had requested SEBI to tweak the requirement of taking handwritten declaration.

There is no change in the current procedure where in digital onboarding process, clients need to write electronically that they have understood the fees/charge structure using their fingers or a stylus pen on the relevant portion of the annexure.