Gulf Investment Date from

which effective:
Procedure
.No
Services Co.
Replaces procedure No.
SAOG
Issued By: :Approved By
Procedures
Manual Subject: Portfolio Management Procedure
Manual

Procedural Steps Sheet 1 out of 5

1. Client Contact and Presentation

2. Account Opening

2.1 An Account Opening Form in the standard format to be duly filled

and signed by the client.

2.2 Portfolio Manager to seek approval from the Divisional Manager for
opening the trust accounts without facility.

2.3 If a margin facility is requested, the Portfolio Manager should send the
proposal, through the Divisional Manager, for the Investment Committee’s
approval.

2.4 All specific requests and instructions by the client to be maintained in the
client file for appropriate action by the respective departments.

2.5 Portfolio Manager to activate the account only after securing written
approval from the operation department.

2.6 Operations department to provide the Portfolio Manager with a copy of the
signed agreement for records or provide for the details of the agreement
to be installed in the computer system.
 Gulf Investment Date from
which effective:
Procedure
.No
Services Co.
Replaces procedure No.
SAOG
Issued By: :Approved By
Procedures
Manual Subject: Portfolio Management Procedure
Manual

Procedural Steps Sheet 2 out of 5

3. Management of the Portfolio

3.1 Discretionary Portfolio

3.1.1 Formulate investment strategy for long term as well as trading portfolio
using key inputs from the Research and Analysis department.

3.1.2 Set guidelines for trading portfolio on weekly basis and circulate secondary
market opportunities to the client on weekly basis.

3.1.3 Review investment plan for long term portfolio at regular intervals and
modify investment plan if necessary.

3.1.4 Adhere to entry and exit levels as specified in investment plan and revise
levels as per market conditions.

3.1.5 Seek to maximize returns in the local as well as overseas markets.

3.1.6 Adhere to the agreed margin levels without any deviation.

3.2 Non Discretionary Portfolio

3.2.1 Portfolio Manager to inform in writing that the client is responsible for the
management of his portfolio.

3.2.2 Client orders to be executed only on written instructions.

3.2.3 Wherever a margin facility has been provided, Portfolio Manager to inform
client that purchase of securities will be restricted to an approved list of
security.

3.2.4 Portfolio Manager to will provide the client with research and market
information support to enable the client take prudent decisions.

3.2.5 Advise on any new investment opportunities to the client.

3.2.6 Adhere to the agreed margin level without any deviation.

 Gulf Investment Date from
which effective:
Procedure
.No
Services Co.
Replaces procedure No.
SAOG
Issued By: :Approved By
Procedures
Manual Subject: Portfolio Management Procedure
Manual

Procedural Steps Sheet 3 out of 5

4. Trading

4.1 Purchase of Securities

4.1.1 Check Cash position or margin status.

4.1.2 Check investment plan suggested and adherence to approved list of

securities.

4.1.3 Written orders to operation department duly checked by portfolio manager

and approved by the Division Manager.

4.1.4 Check confirmation Vs orders placed.

4.1.5 No carry over of incomplete orders; a new order should be placed in the
standard format with the operations department for completion of the
entire order.

4.1.6 Check the portfolio statement and client statement of account after each
purchase.

4.1.7 Keep cash reserve at specified level as suggested in the investment plan.

4.2 Sale of Securities

4.2.1 Check the exit strategy suggested in the investment plan.

4.2.2 Written orders to operation department duly checked by portfolio manager

and approved by Divisional Manger.

4.2.3 Written instructions to operation departments to carry out unexecuted

orders if any, to the following day and this depends on the prevailing
market conditions and the investment strategy.

4.2.4 Check the portfolio statement & client statement of account after each
sale.
 Gulf Investment Date from
which effective:
Procedure
.No
Services Co.
Replaces procedure No.
SAOG
Issued By: :Approved By
Procedures
Manual Subject: Portfolio Management Procedure
Manual

Procedural Steps Sheet 4 out of 5

4.3 Initial Public Offers

4.3.1 Subscribing for IPO from the trust account is not permitted. However on a
case to case basis and depends on free reserve in the account GIS will
subscribe at the request of the client Procedures to be followed.

4.3.2 Instruct Operation department about the request from the client.

4.3.3 Ensure the subscription and allotment.

4.3.4 Instruct operation department to transfer shares in the client trust account
with GIS.

5. Margin Status

5.1 Monitor margin position on daily basis.

5.2 Not to exceed at any point of time the facility offered to the client.

5.3 Not to purchase until the account reaches agreed percentage by the
management.

5.4 Initiate action to cover up short fall in the margin in the account.

6. Reporting to client

6.1 Weekly report on portfolio status and client statement of account to be

circulated to clients wherever required.

6.2 Meeting with client at regular intervals and also on request basis.

6.3 Circulate analysis report on companies and share information that are
helpful in taking investment decisions.
 Gulf Investment Date from
which effective:
Procedure
.No
Services Co.
Replaces procedure No.
SAOG
Issued By: :Approved By
Procedures
Manual Subject: Portfolio Management Procedure
Manual

Procedural Steps Sheet 5 out of 5

7. Performance Appraisal

7.1 Year-end performance appraisal reports on the portfolio.

7.2 Benchmark the portfolio performance against the index.

7.3 Confirm portfolio balance with MSM.

7.4 Propose new investment strategy for the future.

8. Closure of Account

8.1 Inform operation department, in writing, the request from the client to
close the trust account along with copy of the client’s letter.