How to Become a PMS Distributor in India (2026): NISM XXI-A, APMI Registration and Fees

To distribute Portfolio Management Services in India you need two things: a valid NISM Series XXI-A certificate, and registration with APMI (the Association of Portfolio Managers in India), which gives you an APMI Registration Number (APRN). SEBI made the NISM certificate mandatory for PMS distributors in September 2021, and SEBI's circular of 2 May 2024 requires distributors to register with APMI.

Step by step

1. Pass NISM Series XXI-A. 100 MCQs, 120 minutes, 60% pass mark, 10% negative marking, Rs 1,500 fee. See the exam pattern and syllabus. Update your PAN in your NISM registration so the certificate is issued.
2. Register with APMI. Apply on APMI's distributor registration portal with your NISM XXI-A certificate, PAN and KYC. You must be at least 18 and agree to follow the code of conduct for PMS distributors.
3. Pay the APMI fee and receive your APRN. Portfolio managers pay distribution commission only to distributors with a valid APRN.
4. Empanel with portfolio managers whose strategies you want to distribute, and follow the code of conduct: disclose all commissions to the client, and assess suitability before recommending a PMS.
5. Renew on time. The APRN runs until the validity date of your NISM certificate (3 years), so renew the certificate, by exam or CPE, and then the APRN.

APMI registration fees

Fees are as listed in APMI's master document for distributor registration; other entity types have their own slabs. Confirm the current amount on apmiindia.org before applying.

What a PMS distributor should know

• The minimum investment in PMS is Rs 50 lakh per client, in cash or securities.
• Portfolio managers cannot charge an upfront fee, and exit loads are capped at 3% in year 1, 2% in year 2 and 1% in year 3, with none after that.
• Clients can come in directly, with no distributor and no distribution fee; distributors must disclose all commissions they earn.
• Performance fees work on a high water mark, so a client is never charged twice for the same gain.

All of these are tested in the exam. Practise them chapter by chapter on the XXI-A hub, starting with Chapter 8: Operational Aspects of Portfolio Managers.

Sources: NISM's XXI-A exam page; SEBI notification SEBI/LAD-NRO/GN/2021/48 (7 September 2021); APMI's master document for distributor registration, which cites SEBI circular SEBI/HO/IMD/IMD-PoD-1/CIR/2024/32 (2 May 2024). Rules and fees can change; confirm on nism.ac.in and apmiindia.org.

Related: XXI-A exam pattern and syllabus, how to become a SIF distributor and ARN for mutual fund distributors.