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Options
- A
The interest belongs to the Portfolio Manager as it is not from an investment
-
The interest belongs to the client, and since this was not approved, it must be reported to authorities
Correct answer
- C
The interest belongs to the client, and this action is acceptable as part of discretionary management
- D
The interest belongs to the PMS, and it can be adjusted against service charges
Why this is the answer
SEBI regulations prohibit PMS from earning benefits from client funds outside the agreed investment scope without prior approval.
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