Managed Account Agreement Template for India

The Managed Account Agreement is a fundamental document used in the Indian investment management industry to establish a professional relationship between a SEBI-registered portfolio manager and their clients. This agreement is essential when an investor wishes to delegate the management of their investment portfolio to a professional manager who will make investment decisions on their behalf. The document must comply with the SEBI (Portfolio Managers) Regulations, 2020, and other relevant Indian financial regulations. It typically includes detailed provisions on investment strategy, risk parameters, fees, reporting requirements, and operational procedures. The agreement is designed to protect both parties' interests while ensuring transparency and regulatory compliance in the Indian financial markets context.

1. Parties: Identification of the Portfolio Manager and the Client with complete details as required by SEBI regulations

2. Background: Context of the agreement, including the Portfolio Manager's registration details and the Client's intention to avail managed account services

3. Definitions: Comprehensive definitions of terms used throughout the agreement, including regulatory terms

4. Appointment and Services: Formal appointment of the Portfolio Manager and scope of services to be provided

5. Investment Objectives and Guidelines: Detailed investment strategy, objectives, and restrictions as per client's risk profile

6. Powers and Obligations of the Portfolio Manager: Comprehensive list of the Portfolio Manager's authorities, responsibilities, and duties

7. Client Representations and Warranties: Client's confirmations regarding their capacity, understanding of risks, and regulatory compliance

8. Fees and Charges: Detailed fee structure including management fees, performance fees, and other charges

9. Risk Factors: Mandatory risk disclosures as per SEBI regulations and additional risk warnings

10. Confidentiality: Provisions regarding the protection and handling of confidential information

11. Term and Termination: Duration of the agreement and circumstances for termination

12. Reporting and Valuation: Requirements for portfolio reporting, frequency, and valuation methodology

13. Governing Law and Jurisdiction: Applicable law and jurisdiction for dispute resolution