In accordance with the applicable laws, You (hereinafter collectively referred to as "Client" or "You") hereby appoint Provitt Consultants as the Investment Adviser, entirely at your own risk, to provide the investment advisory and financial planning services in accordance with the terms and conditions of the agreement as mandated under Regulation 19 (1) (d) of the SEBI (Investment Advisers) Regulation 2013. You understand that all risk & rewards from the investments remain entirely at your risk and to your account.
“You have read and understood the terms and conditions of investment advisory and financial planning services provided by Provitt Consultants (hereinafter referred to as “Investment Advisor”) along with the fee structure and mechanism for charging and payment of fee.
Based on your written request to Provitt Consultants, an opportunity was provided by the Provitt Consultants to ask questions and interact with ‘person(s) associated with Provitt Consultants who would be providing the investment advice’”.
a. Investment Adviser shall neither render any investment advice nor charge any fee until the client has signed this agreement.
b. Investment Adviser will not manage funds and securities on behalf of the client and that it shall only receive such sums of monies from the client as are necessary to discharge the client’s liability towards fees owed to the Investment Adviser under this Agreement.
c.. Investment Adviser will not, in the course of performing its services to the client, hold out any investment advice implying any assured returns or minimum returns or target return or percentage accuracy or service provision till achievement of target returns or any other nomenclature that gives the impression to the client that the investment advice is risk-free and/or not susceptible to market risks and or that it can generate returns with any level of assurance
d. Maximum Fees specified under Investment Adviser Regulations and relevant circulars issued there under is given below:
The maximum fees that may be charged under this mode shall not exceed 2.5% of AUA per annum per client across all services offered by the Investment Adviser. The AUA for the above calculation will be Maximum Value of [sum of all original Investment amount or AUA average Value of portfolio so calculated based on market price].
The maximum fees that may be charged under this mode shall not exceed INR 125,000 per annum per client across all services offered by the Investment Adviser. This is in accordance with Regulation 15A of the amended Investment Adviser regulations and with SEBI circular “Guidelines for Investment Advisers” dated September 23, 2020.
e. Fees to be charged to you by us The fees are payable during the course of this engagement, Fee calculation and fee payment schedule has been shown in Annexure A.
a.The Services be limited to devising an Investment Plan and advising the Client with respect to Portfolio strategy and investment and divestment of Securities and Funds held by the Client, on a non-exclusive basis for an agreed fee structure and for a period hereinafter described, entirely at the Client’s risk
b. The Investment Advisor’s authority over the Client’s investments shall only extend to services as described above. The actual investment shall be undertaken by the Client.
c. The Client has the sole discretion to decide on whether to act upon the advice tendered by the Investment Advisor and the Investment Advisor shall have no power, authority, responsibility or obligation to ensure or cause the client to act upon the advice tendered by investment advisor pursuant to this agreement.
a.The Investment Advisor agrees that it will observe high standards of Integrity and fairness in all its dealings with the Client and acknowledges that it will abide by all Applicable Laws (including the SEBI (Investment Advisers) Regulations, 2013 along with amendments, rules, circulars and notifications), while providing the Investment Advisory Services to the Client.
b. The Investment Adviser represents and warrants that, it will ensure compliance with the eligibility criteria as specified under the SEBI (Investment Advisers) Regulations, 2013 at all times
c. The Investment Adviser will provide reports to clients on potential and current investments.
d.The Investment Adviser will follow Risk assessment procedure to know client risk capacity and risk aversion
e.The Investment Adviser represents and warrants to maintain all records as required under Applicable Laws, including without limitation to know-your-customer, risk assessment, analysis reports of investment advice and suitability, terms and conditions document, related books of accounts and a register containing list of clients along with date investment advice and its rationale in compliance with the SEBI (Investment Adviser) Regulations, 2013.
f.The Investment Adviser represents and warrants to conduct periodical audits as required under Applicable Law.
g.The Investment Adviser represents and warrants that it will abide by the code of conduct as specified in the third schedule to the SEBI (Investment Adviser) Regulations, 2013.
a. We confirm that we shall recommend implementation of advice through direct schemes/direct codes wherever available and take into account any specifications/restrictions desired by you or as required by Regulations.
b. We confirm that we will present a written financial plan or model, or strategy based on the risk profiling conducted for yourselves, Total AUA for yourselves and the time period of deployment. We further confirm we will obtain your confirmation before implementing any financial plan or model or strategy presented to you.
c. We confirm that we will consider the tax related aspects pertaining to investment advice and on our fees.
a. The Client clearly understands and acknowledges that investment in stock markets is subject to market risks and the investment, value of portfolio may go up or down depending on the factors and forces affecting securities markets. The Investment Adviser provides no guarantee or assurance for any return on investment. The Client also acknowledges reading the Risk Factors in this Agreement and more specifically stated in Annexure B.
b. Any act, omission or commission of the Investment Advisor under this Agreement will be solely at the risk of the Client and the Investment Adviser will not be liable for any act, omission or commission taken or failure to act save and except in cases of its own gross negligence, wilful default and /or fraud.
c. A detailed statement of risks associated with each type of investment covering the standard risks associated with each type of investment in securities and investment products has been led out in Annexure B. however, it shall in no manner serve as conclusive list of all possible risks that could arise out of such investment.
a. This Agreement shall be valid unless either party or both parties terminate it after giving not less than 30 (thirty) days written notice of termination to the other Party, and the Agreement shall stand terminated on the date specified in such notice as the date of termination.
The Minimum period of subscription period will be for 1 year, and the subscription will get auto renewed on existing terms and conditions or as mutually agreed.
a. Any amendment to this Agreement shall only be made with the mutual written consent of both Parties to the Agreement. Upon the Investment Advisor receiving knowledge of any change in Applicable Laws, the Investment Advisor shall intimate such change to the Client and the Parties shall mutually amend the Agreement as required. Where the Client does not give their consent to amend the Agreement, the Investment Adviser reserves the right to terminate the Agreement as provided under the agreement.
a. It is agreed that either party to this Agreement shall have the right to terminate this Agreement without having to assign any reasons, by providing the other party, a thirty (30) days’ prior written notice of the same.
b. This Agreement may be terminated under the following circumstances, namely
i. Voluntary/ mandatory termination by the Investment Adviser.
ii. Voluntary/ mandatory termination by the client.
iii. Suspension/ Cancellation of registration of Investment Adviser by SEBI.
iv. Any other action taken by other regulatory body/ Government authority.
c. In case of suspension of the certificate of registration of the IA, the client may be provided with the option to terminate the agreement.
d. Without prejudice to any other remedy available at law or equity, in the event of default by either of the Parties, the non-defaulting Party shall have the right to terminate this Agreement forthwith in the event of the defaulting Party failing to perform or rectify such breach of its obligations under this Agreement within a period of thirty (30) days from the date of notice to rectify such default.
e. It is further agreed that in the event of termination of this Agreement, the Client shall be liable to pay the fee due till the date of termination of this Agreement on a pro-rata basis of assessment subject to Annexure A attached herein under.
f. In case of a voluntary termination of the agreement, the client would be required to give a 30 days’ prior written notice while the Investment Adviser would be required to give a 30 days’ prior written notice.
a. In the event of a voluntary/mandatory termination by the Investment Advisor, the Client shall be refunded the fees for an unexpired period. There are no refunds from us when our fee is payable in arrears. We will provide transitional support to allow you to continue investing and financial planning on your own or transfer it to any other person you indicate.
b. On termination, the Client shall co-operate and support the Investment Adviser and will comply with any and all the requests of the Investment Adviser in respect of the documents required to be executed to effect the termination.
We are carrying on the Investment Advisory activities independently on an arm’s length basis from all our other activities and it will be carried on as such throughout the tenure of this Agreement. Any conflict of interest with our related entities will be separately disclosed to you.
a.To represent IA shall not provide any distribution services, for securities and investment products, either directly or through their group to an advisory client.
a. To represent IA shall not provide investment advisory services, for securities and investment products, either directly or through their group to the distribution client
We shall ensure to take all consents and permissions from the you prior to undertaking any actions in relation to the securities or investment product advised by us.
We shall not seek any power of attorney or authorizations from you for implementation of investment advice.
We declare that that we do not derive any direct or indirect benefit out of the securities/ investment products invested by you and we will disclose all conflicts of interest as and when they arise.
a. The Investment Adviser shall be responsible for maintenance of client accounts and data as mandated under the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013.
b. The Investment Advisor agrees to handle all information provided by the Client with utmost care and confidentiality in accordance with applicable regulations and prescribed industry standards. However, if required by an appropriate government authority or by the Regulations, the Investment Advisor may have to divulge said confidential information but agrees to provide appropriate notice to the Client before doing so.
a. There will be broadly Two Payment Schemes for Client to opt for under AUA Mode :
i. Advance Fees Payment Scheme
ii. Advance Fees Payment Scheme
The AUA for the above calculation will be Maximum Value of [sum of all original Investment amount or AUA average Value of portfolio so calculated based on market price]. Billing Illustration is given in as per Annexure A For Non-Advance Payment Scheme, eNACH facility will be compulsory for Client
b. General details of Fees and Billing is as follows:
i. An Emailer/ SMS will be sent to the customer on Receipt of payment of fee
ii. For client who has opted for eNACH facility, the Advisory fees will be collected within 10 days of Bill Date.
iii. For client other than those of eNACH facility, the Client Shall pay the Fees in advance for two quarters or as agreed by Client as per Annexure A iv. An invoice will be generated within seven working days of start of the new quarter and the advisory fees will be collected/pulled from the client’s bank account using eNACH or the Client shall make the payment by other payment mode or as agreed by Client as per Annexure A, within 10 day of the bill Date.
The payment of fees shall be through a mode which shows traceability of funds. Such modes may include account payee crossed cheque/ Demand Drafts or by way of direct credit to the bank accounts through Payment Gateway/ NEFT/ RTGS/ IMPS/ UPI/ eNACH or any other mode specified by SEBI from time to time. However, the fees shall not be accepted in cash.
c. In consideration of the services provided pursuant to this Agreement, the Investment Adviser shall be paid fees by the Client, as may be mutually agreed by the Parties in terms of Annexure A of this Agreement from time to time (“Fees”). Annexure A may be amended in this regard from time to time with the mutual consent of both the Parties and any such amended annexure which is signed and agreed by the Parties will form an integral part of this Agreement, without there being a need to amend this Agreement.
d. The Fees shall be exclusive of any taxes and the Client shall solely pay and bear any applicable taxes, levies or duties with respect to the Advisory Services and any transactions undertaken pursuant to this Agreement.
e. The Client agrees to pay the fees and applicable charges and expenses listed out in Annexure A and as communicated to the Client from time to time within 10 days from the date of receipt of the invoice/bills for the same from the Investment Adviser. The Client shall pay additional interest at the rate of 18 % per annum in the event of the Client failing to pay the fees, costs, charges and expenses on or before the due date as per this Clause above.
f. A detailed fee schedule with Fee modalities and periodicity will be communicated to client
a. We shall not incur any liability by reason of any loss, which you may suffer by reason of any depletion in the value of the assets under advice, which may result by reason of fluctuation in asset value, or by reason of non-performance or under-performance of the securities/funds or any other market conditions.
b.The Parties hereby agree that the risks and losses incurred by the Client in pursuance of financial advice rendered by the Investment Advisor shall be borne solely and exclusively by the Client and/ or any legal representative of the Client.
c. The Client understands that the responsibility of the Investment Advisor does not extend beyond providing a financial advice that is best suited to the investment needs of the Client and as such any investment decision made by the Client, relying completely or in part, upon the financial advice rendered by the Investment Advisor shall be deemed to have been made voluntarily and independent of the Investment Advisor’s influence.
d. The Client understands that the financial advice rendered by the Investment Advisor is subjective and unique to the investment related needs and the financial situations of the Client and is designed in the light of the market conditions. Any advice rendered to a third party by the Investment Advisor and benefits thus accrued or the losses incurred by the same shall have no bearing whatsoever upon the unique financial advice rendered to the Client.
e. The Client Further agrees that any risk undertaken and/or loss incurred by employing the unique financial advice rendered by the Investment Advisor to a third party shall be the responsibility and/ or the liability of the Client and/or any legal representative thereof.
f. The Investment Advisor undertakes to render financial advice best suited to the Client’s requirement with considerable diligence. The Investment Advisor shall not be liable for any loss incurred by the Client during or after the term of this Agreement.
a.We confirm that we, our principal officer and the persons associated with the investment advice shall be appropriately qualified as required under the Regulations. We have all applicable approvals and consents as required from regulatory / statutory bodies, third party consents, corporate approvals etc. and covenant to maintain them throughout the validity of this Agreement.
a.We shall provide appropriate transition services to your nominee in the event of your death/ disability, succession, nomination, representation etc. The Client understands it is his/her responsibility to keep the family members informed about his/her investments and the relationship with the Investment Adviser.
As Provitt Consultants is a Non-individual entity. So this is Not Applicable for Non-Individual investment adviser.
a.All actions taken in good faith are protected. All disputes between us shall be subject to resolution, including arbitration, as may be provided under the Regulations.
b. all claims and disputes arising out of or in connection with this Agreement or its performance, including in relation to fees and charges, or any non-contractual claims arising between the Parties shall be settled by the Parties at the outset by consultation, failing which such claims and disputes shall be referred to the arbitration conducted by an arbitration in accordance with the provision of the Arbitration and Conciliation Act, 1996. In respect of such arbitration:
i. The cost of such arbitration proceedings shall be borne by the Parties equally.
ii. The arbitration proceedings shall be conducted in English.
iii. The award of the arbitrator shall be final and binding on both the Parties.
iv. The place of arbitration shall be at Delhi or a place specified by the Investment Adviser.
For any complaints on our services, kindly mail us at info@provittconsultants.com. Complaints raised on this email-id will be accessed by our senior management and will be treated on utmost priority. In case we are not able to resolve your complaint to your satisfaction within the timelines specified under SEBI circulars, you have a choice to raise your complaint to the SEBI After exhausting all available options for resolution of the grievance, if the investor/client is still not satisfied with the outcome, he/she/they can initiate dispute resolution through the ODR Portal.
The Parties herein agree that in the event of any of the provisions/clauses rendered unlawful/ invalid in accordance with the imposition of new government policies, court decision, statute, rules, and enactments or otherwise, the rest of the provisions/clauses shall continue to remain in operation except as otherwise agreed upon by the Parties in writing.
The Investment Adviser shall not be liable for delays or errors occurring by reason of circumstances beyond its control, including but not limited to acts of civil or military authority, national emergencies, work stoppages, fire, flood, catastrophe, acts of God, insurrection, war, riot, or failure of communication or power supply. In the event of equipment breakdowns beyond its control, the Investment Advisor shall take reasonable steps to minimize service interruptions but shall have no liability with respect thereto.
a. Each party agrees to perform such further actions and execute such further agreements as are necessary to effectuate the purposes hereof.
b. This Agreement, Schedules and Annexures are the entire agreement recording the broad understanding reached between the Parties in respect to the Advisory Services provided by Provitt Consultants to the Client.
c. Nothing contained in this AGREEMENT shall constitute a partnership between the Parties or authorize any Party to act as an agent of the other.
d. Neither the relationship between the Client and the investment Adviser nor the Investment Advisory Services to be provided by the Investment Adviser nor any other matter shall give rise.to Investment Advisor which would oblige either the Investment Adviser to accept responsibilities more extensive than set out in this Agreements.
Minimum subscription amount per basket is Rs. 5 Lac
The customer shall be liable to pay an advisory fee of 1.25% of AUA (Assets Under Advisory) and applicable GST per annum.
Here is an illustration of how the fee will be determined, considering the client invested 10 Lacs on the 1st of April with a 1.25% advisory fee.
An advance fee of 3 months is deducted on 1st April.
10L*1.25%/4=3125/-
Each day, the AUM value is recorded and an average AUM for the month is calculated.
On 30th June, the fees for the average AUM calculated each month i.e. Apr, May, June is computed. There will be 3 Scenarios on 30th June:
Scenario 1: The value of the average AUM is the same I.e, 10L and the value of the portfolio on 1st July is also 10L. In this case, the 3 month advance paid by the client is 100% utilised on 30th June and the client is liable to pay the following on 1st July:
10L*1.25%/4=3125/-(Net Advance for the month of July Aug Sep)
Scenario 2: The value of the average AUM is less than 10L I.e let’s take 9L for example and the value of the portfolios on 1st July is also 9L. In this case the 3 months advance paid by the client is not 100% utilised on 30th June and the client is liable to pay the following on 1st July:
9L*1.25%/4=2812.5/-(A)(Gross Advance for July Aug Sep)
9L*1.25%/4=2812.5/-(B)(Actual Fee for Apr May June)
3 Month Advance Paid for Apr May Jun: 3125/-(C)
Difference in the Advance Collected and the actual Fee: C-B=312.5(D)
Total Due on 1st July: A-D=2500/-(Net Advance for the months of July, Aug and Sep)
Scenario 3: The value of the average AUM is more than 10L I.e let’s take 11L for example and the value of the portfolio on 1st July is also 11L. In this case the 3 months advance paid by the client is utilised more than 100% on 30th June and the client is liable to pay the following on 1st July:
11L*1.25%/4=3437.5/-(A)(Gross advance for July Aug Sep)
11L*1.25%/4=3437.5/-(B)(Actual Fee for Apr May Jun)
3 Month Advance Paid for Apr May Jun: 3125/-(C)
Difference in the Advance Collected and the actual Fee: C-B=312.5(D)
Total Due on 1st July: A+D=3750/-(Net Advance for the months of July, Aug and Sep)
Assuming the average AUA value comes to Rs. 15 Lacs, the yearly advisory fee calculated on 15 Lacs will be (15,00,000 * 1.25% = Rs. 18,750).
The client will be billed Rs. 4,688 (18,750/4 quarters) for the quarter ending in June, and the billing will be done within 7 days of July.
For client who has opted for eNACH facility, the Advisory fees will be collected within 10 days of Bill Date.
For client other than those of eNACH facility, the Client shall pay the Fees in advance for two quarters.
An invoice will be generated within seven working days of start of the new quarter and the advisory fees will be collected/pulled from the client’s bank account using eNACH facility or the Client shall make the payment by any other payment mode within 10 day of the bill Date.
i. The Investment Advisor shall not be liable for any loss or damage caused by reason of failure or delay by the issuers of the Securities to deliver Securities of issuers purchased even though payment have been made for the same or failure or delay in making payment in respect of any units of Securities of issuers sold though they may have been delivered and the Client shall hold the Investment Advisor harmless and free from any claim in respect thereof.
ii. The Investment Advisor shall also not be liable for any delay, failure or refusal of the issuers in registering or transferring of Securities to the Client’s name or for any interest, dividend or other loss caused to the Client arising therefrom.
i. The Investment Advisor does not guarantee the future performance of any of the Securities purchased or any specific level of performance, the success of any investment decisions or strategy that the Investment Advisor may use. The Client understands that investment advices given to the Client by the Investment Advisor are subject to various market, currency, economic, political and business risks, and that those investment decisions may not always be profitable.
ii. Except as may otherwise be provided by law, the Investment Advisor will not be liable to Client for (a) any loss that Client may suffer by reason of any investment decision made or other action taken or omitted in good faith by the Investment Advisor with that degree of care, skill, prudence, and diligence under the circumstance that a prudent person acting in a fiduciary capacity would use (b) any loss arising from the Investment Advisor’s adherence to Client’s written or oral instructions; or (c) any act or failure to act by any broker or dealer who the Investment Advisor directs transactions for the Client, or by any other third party.
i. that all investments in Securities involve the risk of adverse or unanticipated market, financial or political developments which may lead to fluctuation or erosion of values of investments made, which may or may not be predetermined or determinable at the time of giving Investment Advisory Services;
ii. That direct/ indirect investments in the Indian capital market are subject to risks associated with equity linked investments (including risks relating to fluctuation in or erosion of values of investment made);
iii. That investments in real estate and real estate linked product are subject to market risks (including risks relating to fluctuation in or erosion of values of investments made) and other risks (including natural disasters);
iv. of the risks involved in derivatives trading and investing funds in capital and money market instruments;
v. Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements before choosing a fund, or designing a portfolio that suits your needs.