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Asset Management Contract Template for India

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Key Requirements PROMPT example:

Asset Management Contract

"I need an Asset Management Contract for a large corporate client based in Mumbai, managing their treasury investments of approximately INR 500 crores, with specific ESG investment restrictions and quarterly reporting requirements starting from January 2025."

Document background
The Asset Management Contract serves as the primary legal framework for establishing and governing the relationship between professional asset managers and their clients in India. This document is essential when engaging an asset management company to manage investment portfolios, whether for individual or institutional clients. It must comply with SEBI regulations, particularly the SEBI (Portfolio Managers) Regulations, 2020, and other applicable Indian financial laws. The contract covers crucial aspects such as investment mandate, risk parameters, fee structures, reporting obligations, and regulatory compliance requirements. It's particularly important for protecting both parties' interests while ensuring transparent and professional management of assets within the Indian regulatory framework.
Suggested Sections

1. Parties: Identification of the Asset Manager and the Client with complete details including registration numbers and addresses

2. Background: Context of the agreement including the Asset Manager's qualifications and Client's intention to appoint them

3. Definitions: Detailed definitions of technical terms, regulatory references, and key concepts used throughout the agreement

4. Appointment and Scope of Services: Formal appointment clause and detailed description of asset management services to be provided

5. Investment Objectives and Strategy: Clear statement of investment goals, permitted investments, and investment strategy

6. Powers and Duties of the Asset Manager: Detailed listing of the Asset Manager's authorities, responsibilities, and obligations

7. Client's Obligations: Client's responsibilities including providing accurate information and maintaining minimum account balance

8. Fees and Expenses: Comprehensive fee structure, payment terms, and allocation of expenses

9. Risk Disclosure: Mandatory risk warnings and acknowledgments as per SEBI requirements

10. Reporting and Valuation: Frequency and format of reports, valuation methodology, and performance measurement

11. Compliance and Regulatory Matters: Regulatory compliance obligations, KYC requirements, and anti-money laundering provisions

12. Confidentiality: Protection of confidential information and data privacy obligations

13. Term and Termination: Duration of agreement, renewal terms, and termination provisions

14. Indemnification and Limitation of Liability: Mutual indemnification provisions and extent of Asset Manager's liability

15. Governing Law and Dispute Resolution: Choice of law, jurisdiction, and dispute resolution mechanism

16. Miscellaneous: Standard boilerplate provisions including notices, amendments, and assignment

Optional Sections

1. Foreign Investment Provisions: Required when client is non-resident Indian or involves foreign investments, addressing FEMA compliance

2. Digital Access and Online Services: Include when providing online portfolio access or digital services

3. Sub-Advisory Arrangements: Required when Asset Manager may appoint sub-advisors or delegates

4. ESG Investment Criteria: Include when environmental, social, and governance factors are part of investment strategy

5. Special Investment Restrictions: Required for clients with specific investment restrictions (e.g., Shariah compliance)

6. Corporate Actions: Include for equity investments to address voting rights and corporate action decisions

Suggested Schedules

1. Schedule 1 - Fee Structure: Detailed breakdown of management fees, performance fees, and other charges

2. Schedule 2 - Investment Guidelines: Specific investment restrictions, asset allocation ranges, and benchmarks

3. Schedule 3 - Authorized Persons: List of authorized signatories and their powers

4. Schedule 4 - Risk Disclosure Document: Mandatory risk disclosure document as per SEBI requirements

5. Schedule 5 - Reporting Format: Templates for periodic reports and performance statements

6. Schedule 6 - KYC Documentation: List of required KYC documents and compliance forms

7. Appendix A - Power of Attorney: Optional PoA for enabling Asset Manager to operate on behalf of client

8. Appendix B - Client Risk Profile: Client's risk assessment and investment profile questionnaire

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions








































Clauses








































Relevant Industries

Financial Services

Banking

Investment Management

Wealth Management

Private Equity

Insurance

Pension Funds

Family Offices

Real Estate Investment

Infrastructure Investment

Corporate Treasury

Relevant Teams

Legal

Compliance

Investment Management

Risk Management

Client Relations

Operations

Finance

Treasury

Portfolio Administration

Research

Due Diligence

Regulatory Affairs

Relevant Roles

Chief Investment Officer

Portfolio Manager

Investment Manager

Compliance Officer

Legal Counsel

Risk Manager

Wealth Manager

Investment Advisor

Fund Manager

Relationship Manager

Chief Financial Officer

Treasury Manager

Investment Analyst

Operations Manager

Client Services Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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