Regulation 12E - Obligation and Responsibilities of Eligible Fund Managers - Securities and Exchange Board of India (Portfolio Managers) Regulations, 1993

1 [Obligation and Responsibilities of Eligible Fund Managers 12E. An eligible fund manager shall be required to: (1) comply with the requirements specified under Section 9A of the Income-tax Act, 1961 or any amendment, notification, clarification, guideline issued thereon; 4 (2) offer discretionary or non-discretionary or advisory services or a combination thereof to eligible investment funds; (3) operate in accordance to its mutually agreed contract with the eligible investment funds; (4) provide all material disclosures to eligible investment funds; (5) segregate funds and securities of each eligible investment fund; (6) segregate the funds and securities of eligible investment funds from that of its other clients; (7) maintain and segregate its books and accounts pertaining to its activities as a portfolio manager to eligible investment funds and other clients; (8) appoint a custodian: Provided that requirement of compliance to this sub-regulation does not arise in case an eligible investment fund has already appointed a custodian under the applicable act or regulations; (9) keep the funds of eligible investment funds in scheduled commercial banks: Provided that requirement of compliance to this sub-regulation does not arise in case an eligible investment fund does not intend to invest in Indian securities; (10) maintain any additional records as may be specified by the Board and disclose the same to the Board as and when required; (11) provide quarterly reports to the Board; (12) ensure compliance with the Prevention of Money Laundering Act, 2002 and rules and regulations prescribed thereunder; (13) abide by the provisions in these regulations and circulars / guidelines issued from time to time by the Board. ] ****** 1 Inserted by the SEBI (Portfolio Managers) (Amendment) Regulations, 2016, w.e.f. 02-01-2017.