📊 NISM Series XXI-A Chapter 7 of 12 ⚖ 10 of 100 marks weightage

Ch.7: Role of Portfolio Managers

Practice questions for NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors Certification Examination, Chapter 7: Role of Portfolio Managers. This chapter covers who may act as a portfolio manager in India and the three kinds of service they offer: discretionary, non-discretionary and advisory. It sets out the general responsibilities the SEBI (Portfolio Managers) Regulations, 2020 place on portfolio managers. It then walks through the day-to-day administration of client portfolios: the client agreement, exit loads, dos and don'ts, the custodian, record keeping, audit and the compliance officer. Carries 10 out of 100 marks. The exam has 100 MCQs, 60% passing score, and −10% negative marking per wrong answer.

What You Will Learn in This Chapter

The legal definition of a portfolio manager, how PMS regulation developed from 1993 to 2020, and who the main PMS providers are.
How discretionary, non-discretionary and advisory services differ on who decides and who executes the trades.
The general responsibilities of a portfolio manager, including the ₹50 lakh minimum investment and its exemptions.
How client money is administered: pool vs individual execution, the investment approach, premature withdrawal and the exit-load caps.
The dos and don'ts, the custodian requirement, record keeping, audit timelines and the compliance officer's role.

Key Terms:Portfolio manager (body corporate)Discretionary portfolio managerNon-discretionary portfolio managerAdvisory servicesAccredited investorFiduciary capacityInvestment approachExit loadOff-market transferCompliance officer

Free Sample Question

Q1MCQMediumClassification in the regulations

Which way of classifying PMS is also referred to in the SEBI regulations?

ABy asset class: equity, fixed income, commodity, mutual fund and multi-asset

BBy client net worth: retail, HNI or ultra-HNI

CBy provider: AMC, broker or boutique PMS house

✓By the services offered: discretionary, non-discretionary or advisory

💡 The workbook notes that the classification by service type (discretionary, non-discretionary and advisory) is the one that also appears in the regulations.

79 more questions in this chapter

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About this content: These practice questions are written by BullWiser from the syllabus of the NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors Certification Examination, using the workbook published by the National Institute of Securities Markets (NISM), Mumbai (September 2025 edition) as the fact source. NISM is a SEBI-established institution. Questions cover Chapter 7: Role of Portfolio Managers with verified answers and explanations. BullWiser is an independent exam preparation platform — not affiliated with NISM, SEBI or APMI. Last updated: September 30, 2026.

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← Ch.6: Collective Investment Vehicles Ch.8: Operational Aspects of Portfolio Managers →