PMS Process guidelines - Motilal Oswal

1 PMS Process PMS Process GUIDELINESGUIDELINESPMS Process PMS Process GUIDELINESGUIDELINESGUIDELINESGUIDELINES GUIDELINESGUIDELINESM otilal Oswal Asset Management Co. LtdMotilal Oswal Asset Management Co. LtdNote: These guidelines /processes are subject to change from time to time; hence please ensure that the latestversion is referred to for relevant Process flowPMS Process flowPMS Process flowPMS Process flow Generate PMS code in tracker Send complete set of documents to PMS BO Demat account opened Initial corpus (Stock/Fund) Initial corpus (Stock/Fund) Account activation Send welcome letter PMS reports (Monthly / Financial statements) Dividend/Corporate actions Redemption/Switch processFrequently asked questions for PMSF requently asked questions for PMSF requently asked questions for PMSF requently asked questions for PMSQ1. What is the minimum corpus for PMS account?Ans. lacs as per SEBI circular dated 10th February, What is the company name to be written on corpus cheque?

2 Will have to give cheque in the name of Motilal Oswal Asset Management CompanyLimited PMS PMS What is stock transfer Process for Initial/Top up stock corpus?Ans. Stock transfer Process manual is uploaded on PMS account tracker as Stock transfer module Q4. Client has not received the welcome letter?Ans. You can check the same in POD details updated in PMS a/c tracker in Single view what are demat account nos. to transfer the stock corpus?Ans. Demat account nos. for stock transfer are as follows:There are no strategy-specific demat accounts, the stocks for all strategies have to be transferred to the below pool demat asked questions for PMSF requently asked questions for PMSF requently asked questions for PMSF requently asked questions for PMSDP Type DP ID Client ID DP Name Q6. Can we accept stock corpus from clients demat account different holdingpattern than that of PMS account? For If client is havingPMS account with holdingpattern A + B, do we accept shares from demat account having holding pattern only A/ OnlyB/ B + A?

3 Ans. Yes, we can accept the stock corpus. However, client has to submit declaration for the same along with demat IN301862 10003617 Motilal Oswal Securities Ltd CDSL 12010900 1201090004306959 Motilal Oswal Securities Ltd Frequently asked questions for PMSF requently asked questions for PMSF requently asked questions for PMSF requently asked questions for PMSQ7. Can we accept stock from third party accounts to client s portfolio?Ans. No. There is ownership, taxation, involved in the stocks. We cannot accept Can we accept fund from client s bank account having third party involved?Ans. Yes, we can accept this fund. However, first holder of the PMS account must be one of the joint holders of the bank account from which payment is joint holders of the bank account from which payment is Do we send hard copy of PMS reports on monthly basis?Ans. No. Only soft copy of monthly statements are mailed to client s registered e-mail id and hard copies are sent on half yearly Do we reinvest client s dividend in his portfolio?

4 Ans. Dividend is directly credited to client s bank account in case of resident and NRI NON POA PMS accounts. Hence we do not reinvest it. Dividend reinvested only for NRI POA asked questions for PMSF requently asked questions for PMSF requently asked questions for PMSF requently asked questions for PMSQ11. Why do we post dividend as cash outflow in client s portfolio?Ans. All dividends are credited directly to the client s personal bank account which is mapped to demat. Also, as per the Portfolio Investment Management Agreement, any outflow of Assets whether dividend or otherwise will be treated as Withdrawal of Assets and the relevant provisions of the agreement shall apply to all such withdrawals. Hence, the dividend amounts are indicated as a cash outflow from the Assets under Management of the client. Please refer Dividend paid figure in account How do client track the credit of the dividends in his bank account?

5 Ans. We are mailing Corporate action report to client on monthly basis and it is available in client s online web login also. Scrip wise dividend receivable amount is mentioned in this report. Client can check credit of the amount in his bank What is the Process to add/delete joint holder in PMS?Ans. No. Holders cannot be added or deleted in PMS. Client has to open new PMS account with required holding pattern and has to follow complete documentation for PMS account opening. Existing account would be closed and asset will be delivered to asked questions for PMSF requently asked questions for PMSF requently asked questions for PMSF requently asked questions for PMSQ14. What is the procedure to send online user id and password to client?Ans. Client can himself generate User id and password for his PMS login. Kindly check My Motilal Web login file uploaded on PMS a/c tracker for the same. Q15. What is the Process to online RTGS/NEFT fund transfer for PMS?

6 Ans. Clients can remit the funds; either through the net banking platform of the clients bank Ans. Clients can remit the funds; either through the net banking platform of the clients bank for RTGS/NEFT payment or by giving the request over the counter of his / her bank branch for RTGS/NEFT paymentThe detailed Process for Fund transfer is uploaded in PMS a/c tracker in PMS Help option as Electronic fund transfer (Corpus) Q16. What are the charges included in Other Expense specified in Account performance report?Ans. Stamp Duty, Service Tax & Other charges (Share Trading) are the charges included in Other asked questions for PMSF requently asked questions for PMSF requently asked questions for PMSF requently asked questions for PMSQ17. Can we provide Contract bills to client?Ans. All resident PMS accounts are open at Pool level and all the transaction are alsobeing processed in strategy wise pool accounts.

7 Therefore we cannot providecontract bills to Why do we need to appoint third party custodian to PMS account?Q18. Why do we need to appoint third party custodian to PMS account?Ans. As per the SEBI regulations as a Portfolio Management Service providers whose assetsunder management are more than Rs. 500 crores, we are required to appoint a thirdparty custodian for managing all the clients assets. This move by the marketregulator has been directed towards improving transparency and reporting standardsin the portfolio management have appointed IL&FS Securities Services Limited (ISSL) as our third party custodian and that all clients assets are under the custody of asked questions for PMSF requently asked questions for PMSF requently asked questions for PMSF requently asked questions for PMSQ19. Do we send STT certificate to client?Ans. No, we do not send STT certificate to client. As up to the year ending 31st March 2008, the STTcertificate (Form 10DB ) was required to be furnished by the assesee along with the return ofincome as evidence of payment of STT on value of transaction entered by him in a recognized stockexchange so that tax rebate under section 88E becomes admissible to from Financial year 2008-09 the assessee will not beallowed any tax rebate under (xv) (xv)iftheincomeisincludedunder business income & thus here there is no requirement of furnishing the STT certificate in form10DB.

8 We maintain the STT database of each client so that incase of any client /income taxdepartment requires confirmation of STT amount we can always certify the amt of STT and canprovide STT Do we provide TDS certificates to PMS resident clients?Ans. No, we do not provide TDS certificates to PMS resident clients as we do not charge TDS at our refer the note written at the bottom of debit note. If client is liable to pay TDS, he has todeposit the TDS to the credit of Central Government, file theTDS return and submit a valid TDScertificate to PMS BO to refund TDS asked questions for PMSF requently asked questions for PMSF requently asked questions for PMSF requently asked questions for PMSQ21. Why there is difference between fees mentioned in debitnote and account performancein monthly report?Ans. Fees for all months except 31st March are charges on 1st working day of next month soas to give enough time to client to pay TDS.

9 Hence, fee showingin account performanceof monthly report is previous month s fees.[Note: Fees showing in March month s report is the total feescharged in the month of Feb and March as March feeschargedon31stMarchitself.]chargedon3 1stMarchitself.]Q22. Do we have to follow the complete Process for existing client?Ans. Please refer the PMS forms chart updated in PMS ACCOUNT TRACKER for the What is the Process to change the fees schedule?Ans. Client has to submit request letter for the same along with duly signed fees schedule(Note: client cannot change the fees schedule in the mid year. He has to submit the request in month of Marchand new fee schedule will be applicable from 1st Apr ofnext financial year.) asked questions for PMSF requently asked questions for PMSF requently asked questions for PMSF requently asked questions for PMSQ24. What are documents required for death claim settlement in case of single holding withnominee updated in demat?

10 Ans. Please refer the death claim Process file updated in PMS ACCOUNT TRACKER for the What is the procedure to change nominee in PMS account? What is the procedure to change joint holder in PMS?Ans. We cannot change any of the holders in PMS. Client has to open a new account with requiredholders following complete documentation and existing account would be What is the amount mentioned payable to broker/receivable from broker in balance sheet?Ans. These are the pending settlement amounts as on 31st March of the said financial year. You cancheck the same by generating Transaction Statement from March month and check asked questions for PMSF requently asked questions for PMSF requently asked questions for PMSF requently asked questions for PMSQ28. Why there is difference in amounts between Capital GainLoss Statement and Profit &loss statement for the financial year?Ans. The reasons for the same are as follows:A)Realised Gain Loss amount reflected in Profit & Loss and Account PerformanceStatement is the Gross realised gain Loss amount (as we are showing all the expensessuchasServiceTax,StampDuty,Other charges, ).