NISM Series XXI-A: Portfolio

NISM Series XXI-A: Portfolio Management Services Certification

The NISM Series XXI-A: Portfolio Management Services (PMS) Certification Examination is a mandatory qualification for all principal officers and associated persons of SEBI-registered Portfolio Managers. Portfolio Management Services cater to high-net-worth investors (minimum investment of ₹50 lakhs as per SEBI) and provide customised, actively managed investment portfolios.

Exam Details

Duration: 2 hours. Questions: 100 MCQs. Passing Marks: 60%. Negative Marking: 25%. Fees: ₹2,000 + GST. Validity: 3 years.

Key Syllabus Areas

PMS Regulatory Framework (20%): SEBI (Portfolio Managers) Regulations 2020, registration norms, disclosure requirements, investment approach types (Discretionary, Non-Discretionary, Advisory). Portfolio Theory (25%): Modern Portfolio Theory, risk-return tradeoff, CAPM, Sharpe Ratio, Treynor Ratio, Jensen's Alpha. Security Analysis (25%): Equity valuation models (DDM, DCF, Relative Valuation), fixed income analysis, credit analysis. Portfolio Construction (20%): Strategic vs tactical asset allocation, rebalancing strategies, factor investing. Client Servicing (10%): Investor profiling, reporting requirements, performance measurement.

SEBI PMS Regulations 2020 Highlights

Key changes in the 2020 regulations: Minimum corpus increased to ₹50 lakhs. Net worth requirement for Portfolio Manager increased to ₹5 crore. All fees and charges must be clearly disclosed upfront. Portfolio managers must provide detailed monthly performance reports. Performance must be computed using Time-Weighted Rate of Return (TWRR) methodology for standardized comparison.

Regulatory Statutory Warning & Disclaimers

Investment in the securities market is subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.