FAQs

As defined in the Regulation 2(o) of SEBI(Portfolio Managers)Regulations, 2020, a portfolio manager is a body corporate, which, pursuant to a contract with a client, advises or directs or undertakes on behalf of the client (whether as a discretionary portfolio manager or otherwise) the management or administration of a portfolio of securities or goods or funds of the client.

PMSs are of three types – Discretionary, Non-Discretionary, and Advisory.

Under these services, the choice as well as the timings of the investment decisions rest solely with the Portfolio Manager.

Solidarity Advisors Pvt Ltd currently offer only Discretionary PMS to client partners.

High Net-worth Individuals and Non-Individuals such as HUFs, Partnerships Firms, Trusts, Sole Proprietorship Firms and Body Corporates.

As per Securities and Exchange Board of India (SEBI) regulations, you must invest a minimum corpus of INR 50 Lakhs by way of funds or listed equities or a combination thereof to start a Portfolio Management Services account. However, at Solidarity, our minimum value of investment is INR 2.5 Crores

Unlike a mutual fund, PMS gives access to ownership in individual shares. PMS works on the concept of personal demat, whereas mutual funds offer units in the pooled portfolio. In PMSs, one investor’s behavioural reactions to market movements don’t impact other investors’ portfolios. Portfolio Managers have the flexibility with regards to allocating corpus per business, per sector, and cash calls.

PMSs are more focused, concentrated, customised as per clients requirements i.e not investing in the restricted stocks given by the clients and follow relatively lower churn, as funds do not flow in and out too often as in the case of a pooled structure like MF. PMSs are more transparent in terms of activity, transactions, holdings, expenses, and so investors are more connected and informed about where the money is eventually invested.

The investor must satisfy the mandatory KYC requirements as prescribed under laws by providing documents like an Identity Proof, PAN card, Address Proof, etc. Investors are required to sign the Application Form along with an Agreement (which will detail the amount the investor is committing to invest, management fees, other operating fees and profit sharing of success-based fee amongst other things), and risk disclosures. The details of KYC documents required by each category of investors, i.e. Individual, HUFs, Corporate, etc., are mentioned in the Application Form. Investor onboarding will be done after running internal Anti-Money Laundering checks as applicable

We advocate for a long-term perspective when it comes to equity investments. We advise clients interested in investing with us to plan for a minimum investment horizon of 3 to 5 years, and the longer the horizon, the better. For those with an investment timeline shorter than 3 years, we recommend seeking alternative investment opportunities better suited to their timeframes.

No, each client’s portfolio is unique.

We tailor and adjust the portfolio based on the individual client’s start time with us, as well as any subsequent funds added or withdrawn. While incrementally we take similar decisions for our clients, for a new client, their portfolio at the time of entry may appear quite different from that of an existing client. This difference is also influenced by the current valuations of the companies we are looking to invest in. If valuations are attractive, we invest more promptly; however, if they are less so, the process of becoming fully invested may take longer, sometimes even several months.

We are currently offering two investment strategies to meet diverse requirements of clients, you can view the details here.

It’s important to understand that equity investing inherently carries risk. We do not create portfolios that are more concentrated or carry a higher risk based on individual client requests. Our service is a discretionary Portfolio Management Service (PMS), where we are responsible for all investment decisions concerning the portfolio.

Absolutely. To initiate the onboarding process, please complete the form on our
website. Following that, we will arrange a call with you to proceed further.

Your bank (NRI clients only) and demat accounts will be opened with Kotak Mahindra Bank or ICICI Bank, which serves as the designated custodians for client assets.

For Resident Indian clients, we open only the Demat account with any one of the custodians ( Kotak Mahindra / ICICI Bank).

• A PMS pool bank account is a designated bank account maintained by the Portfolio Manager (PM) where funds from multiple PMS clients are collected (pooled) for investment purposes. This account is typically in the name of the Portfolio Manager or their PMS entity, not in the individual client’s name. The client funds are deposited into the PMS provider’s pool account, and your investments are tracked separately in their records and reporting systems. We maintain clear records of each client’s contributions and investments.

To set up an account for a resident Indian client, we assist in opening a demat account. For Non-Resident Indians (NRIs), we additionally open a bank & trading account alongside the demat account. These accounts are established under the client’s name, and the client grants a Power of Attorney (PoA) to Solidarity to operate and manage these accounts on the client’s behalf. Clients have the flexibility to open accounts either individually or jointly, and also appoint nominees for both bank and demat accounts.

Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs), and Overseas Citizens of India (OCIs) are eligible to open PMS accounts in India, subject to regulatory guidelines and proper documentation.

The NRI client must open a Portfolio Investment Scheme (PIS) account, which is a special bank account (NRE or NRO) required by RBI for NRIs to invest in Indian securities on a repatriable or non-repatriable basis. he PIS account must be opened with a designated bank authorized by RBI.

In addition to the PIS account, the NRI client must also open a demat account with anyone of the designated custodians under Solidarity Advisors Private Limited.

Once all documents are signed and the Know-Your-Customer (KYC) verification is complete, it will take approximately 5 to 7 working days to set up the account.

Disclosure document is the mandatory document that the Portfolio Manager has to provide to the client at the time of or any time prior to entering into an agreement to provide Portfolio Management Services.

The disclosure document contains the quantum and manner of payment of fees
payable by the client for each activity, portfolio risks, complete disclosures in respect of transactions with related parties, the performance of the portfolio manager, and the audited financial statements of the portfolio manager for the immediately preceding three years.

Please note: SEBI also does not certify the accuracy or adequacy of the contents of the disclosure document.

The disclosure document is made available on the website of the Portfolio Manager in the disclosures section.

Under Discretionary Portfolio Management Service (DPMS), Portfolio Managers shall invest funds of his clients in the securities listed or traded on a recognized stock exchange, money market instruments, units of Mutual Funds through direct plan, and other securities as specified by SEBI from time to time.

According to the SEBI (Portfolio Managers) Regulations, 2020, the portfolio manager must charge a fee for portfolio management services based on the agreement with the customer. The cost may be management fees, a performance-based fee, or a combination of the two.

The agreement between the portfolio manager and the client must specify, among other things, the amount and manner of fees due by the client for each activity for which the portfolio manager provides services. Please see here.

Clients have the flexibility to opt for either partial or full redemptions from their account. For partial redemptions, it’s important to note that the remaining balance post-withdrawal must comply with SEBI regulations, which currently mandates a minimum of INR 50 lakhs. The process of redemption can be initiated by sending an email to us from your registered email address.

For a partial redemption, if your account holds sufficient cash, the transfer is usually completed within 3 working days. Should equities need to be sold, the timeline extends to 7-10 working days.

In the case of a full redemption, we will liquidate the entire portfolio, and the majority of the funds will be transferred to your personal account, typically within 7 working days. A certain amount is reserved to cover any pending charges and fees. You will be required to sign the closure forms, and after a period of 30-45 days, once all charges have been fully reconciled and settled, any remaining funds will be transferred to your account. Finally, we will handle the submission of account closure documents for bank, demat, and trading accounts (as applicable) to the relevant institutions, and send you a closure report.

Clients are free to add funds to their account at any time after the initial investment, and there is no minimum amount required for these additional contributions.

Yes, it is possible to add securities to your portfolio after opening your depository account (demat account). However, please note that we only accept listed equities for inclusion in the portfolio account. We strongly recommend that clients consult with us prior to the transfer of any such securities.

The portfolio manager shall furnish periodically a report to the client, as per the agreement, but not exceeding a period of three months or as and when required by the client and such report shall contain the following details, namely: –

• the composition and the value of the portfolio, description of securities, number of securities, value of each security held in the portfolio, , cash balance and aggregate value of the portfolio as on the date of report;
• transactions undertaken during the period of report including date of transaction and details of purchases and sales;
• beneficial interest received during that period in the form of interest, dividend, bonus shares, rights shares, etc;
• expenses incurred in managing the portfolio of the client;
• details of risk foreseen by the portfolio manager and the risk relating to the securities recommended by the portfolio manager for investment or disinvestment;
• default in payment of coupons or any other default in payments in the underlying debt security and downgrading to default rating by the rating agencies, if any;
• details of commission paid to distributor(s) for the client.

The client may appoint a chartered accountant to audit the books and accounts of the portfolio manager relating to his transactions and the portfolio manager shall co- operate with such chartered accountant in course of the audit.

To ensure you are always informed and up-to-date with your investments, we provide a comprehensive suite of reports and updates. Here’s what you can expect in terms of communication and reporting:

• Notifications to your registered email address for any Fund/Securities transfers to or from your PMS account
• Monthly Reports: A detailed Portfolio statement by the 10 th working day of each month.
• Quarterly Advance Tax Data: Capital gains, Interest income, Dividend, TDS information for advance tax purposes, provided by the 12th day of each quarter-ending month.
• Quarterly Reports: A detailed Portfolio statement by the 20 th working day after the end of the quarter
• Yearly reports: A detailed statement with relevant data for India tax filing, provided by April 30 of each year, including details like capital gains, interest, dividends, TDS, securities at cost, bank statement, broker ledger, etc
• Annual statement: An audited report with relevant data for India tax filing, provided by June each year, including details like capital gains, interest, dividends, TDS, securities at cost, bank statement, broker ledger, etc.
• Billing Report: A billing report provided quarterly for the management fee, performance fee (if applicable) & custody & Fund accounting incurred for the previous quarter.
• Event-based and ad-hoc communication: This includes updates related to share buybacks, IPOs, Re-KYC notifications (if required by the bank/broker), and any other regulatory/account-related updates.

You can view your portfolio details and download statements directly from the
client portal accessible from our website.

https://app.solidarity.in/wealthspectrum/app/login

We have attached step-by-step instructions to guide you through the processIf
you face any issues, please reach out to us at [email protected] and we
will be glad to assist. Please click here to access our user manual.