Description
Taxmann Portfolio Management Services (PMS) Distributors edition 2025 by SEBI
Portfolio Management Services (PMS) Distributors lays out foundational concepts, regulatory frameworks, operational procedures, and best practices essential for anyone aspiring to operate in the PMS distribution domain. It equips readers with theoretical knowledge and practical insights, ensuring they understand the intricacies of the securities market, portfolio management strategies, and compliance requirements.
This book is intended for the following audience:
Aspiring PMS Distributors – Individuals seeking to become distributors of Portfolio Management Services or preparing for the NISM-Series-XXI-A certification exam
Employees of Portfolio Managers and Distribution Houses – Professionals working in Portfolio Management outfits, brokerage firms, or wealth management institutions involved in distributing PMS solutions
Financial Advisors and Wealth Managers – Advisors who wish to expand their expertise, enhance client service, and remain updated on the operational and regulatory aspects of portfolio management
Students and Researchers – Those looking to build a career in the financial services domain or seeking structured knowledge of the Indian portfolio management landscape
The Present Publication is the March 2025 Workbook Version, developed in collaboration with the Certification Team of NISM and Dr Rachana Baid, Dr Kameshwar Rao and Dr Kishore Rathi. It is published exclusively by Taxmann, with the following noteworthy features:
[Aligned to NISM Certification Requirements] Developed in accordance with SEBI's prescribed knowledge benchmarks for PMS distributors, covering the full scope of the examination syllabus
[Comprehensive Coverage] Explores the fundamentals of investments, securities markets, the role of portfolio managers, operational procedures, performance evaluation, and taxation—everything you need to master PMS distribution
[Lucid and Practical Content] Written in clear language, supplemented by real-world examples, caselets, and illustrations to aid comprehension and application of core concepts
[Authored & Reviewed by Industry Experts] Created by NISM in collaboration with experienced practitioners and academicians, ensuring the material is both authoritative and relevant to contemporary market practices
[Focus on Compliance & Ethical Practices] Includes detailed discussions on SEBI regulations, governance standards, and professional ethics critical for anyone distributing or advising on PMS
[Step-by-Step Operational Guidance] Explains client onboarding, disclosures, fees, redressal mechanisms, and other operational facets, making it a practical reference for day-to-day responsibilities in PMS distribution
The coverage of the book is as follows:
Investments
Explains basic investment concepts, the difference between investments and speculation, setting investment objectives, and understanding required rates of return
Introduction to Securities Markets
Discusses market structure, roles of primary and secondary markets, and the ecosystem of market participants
Investing in Stocks
Covers equity as an investment class, diversification, risk factors, fundamental and technical analyses, and corporate governance
Investing in Fixed Income Securities
Details bond characteristics, determinants of safety, bond pricing, yield measures, and sensitivity (duration, convexity)
Derivatives
Explores forwards, futures, options, and swaps and how derivatives are used for hedging, speculation, or arbitrage within PMS portfolios
Mutual Funds
Explains mutual fund structures, benefits, types of schemes, net asset value, expense ratios, and regulatory guidelines
Role of Portfolio Managers
Outlines the functions, operational models, registration requirements, and responsibilities of PMS providers
Operational Aspects of Portfolio Managers
Focuses on client onboarding, disclosures, fee arrangements, grievance redressal, and regulatory reporting
Portfolio Management Process
Discusses asset allocation techniques, correlation, rebalancing strategies, and the step-by-step procedure to manage portfolios effectively
Performance Measurement and Evaluation
Explains how to calculate risk and returns, benchmark performance, conduct attribution analysis, and report to clients
Taxation
Covers taxation rules for income generated through PMS, including short-term and long-term capital gains, dividends, and special considerations for certain investor categories
Regulatory, Governance, and Ethical Aspects
Highlights anti-money laundering (PMLA, 2002), insider trading regulations, fraud prevention, and SEBI (Portfolio Managers) Regulations, 2020
The structure of the book is as follows:
Chapters 1–12 – Each chapter systematically introduces core concepts, followed by examples, illustrations, and practice questions. Complex topics are broken down into simpler sections, enhancing readability and comprehension
Sample Case Studies & Multiple Choice Questions – Situated towards the end, these serve as practice material for the exam. They reflect the approximate level of difficulty but may not fully represent the breadth of topics
Summaries and Key Takeaways – Most chapters conclude with concise recaps, ensuring readers can quickly revisit major points before proceeding