The Securities and Exchange Board of India on 16th January 2020 has published the Securities and Exchange Board of India (Portfolio Managers) Regulations, 2020 by setting out new norms for governing the portfolio management service and has doubled the portfolio manager’s net worth requirement to ₹5 crore, with thirty-six months for compliance.
Key Highlights of the notification:
A person to act as a portfolio manager shall make an application in Form A along with a non -refundable application fee and shall obtain the certificate of registration in Form B and The certificate of registration shall be valid unless it is suspended or canceled by the Board.
The portfolio managers offering non-discretionary or advisory services to clients may invest or provide advice for investment up to 25% of the assets under management of such clients in unlisted securities, in addition to the securities permitted for discretionary portfolio management.
The portfolio managers may invest in units of mutual funds only through direct plans but shall not charge any kind of distribution related fees to the client.
Further the portfolio manager shall not deploy the clients’ funds in bill discounting, badla financing or for the purpose of lending or placement with corporate or non-corporate bodies
Click here to read the Notification.
