Regulation 7 - Consideration of application - Securities And Exchange Board of India (Portfolio Managers) Regulations, 2020

Consideration of application. 7. (1) For considering the grant of certificate of registration to the applicant, the Board shall take into account all matters which it deems relevant to the activities relating to portfolio management. (2) Without prejudice to the generality of the foregoing provisions, the Board shall consider whether :- (a) the applicant is a body corporate; (b) the applicant has the necessary infrastructure like adequate office space, equipment and the manpower to effectively discharge the activities of a portfolio manager; (c) the applicant has appointed a compliance officer; (d) the principal officer of the applicant has 1 [ (i) a professional qualification in finance, law, accountancy or business management from a university or an institution recognized by the Central Government or any State Government or a foreign university or a professional qualification by completing a Post Graduate Program in the Securities Market (Portfolio Management) from NISM of a duration not less than one year or a professional qualification by obtaining a CFA charter from the CFA institute; ] ii. experience of at least five years in related activities in the securities market including in a portfolio manager, stock broker, investment advisor, research analyst or as a fund manager; and iii. the relevant NISM certification as specified by the Board from time to time 2 [ : ] Provided that at least 2 years of relevant experience is in portfolio management or investment advisory services or in the areas related to fund management 3 [ : ] Provided further that a portfolio manager, who was granted a certificate of registration prior to the commencement of the Securities and Exchange Board of India (Portfolio Managers) Regulations, 2020 , shall comply with sub clauses (i) and (ii) of clause (d) of sub-regulation (2) of regulation 7 within thirty-six months from such commencement 3 [ : ] 4 [ Provided further that a fresh NISM certification shall be obtained before expiry of the validity of the existing certification to ensure continuity in compliance with the certification requirements 6 [ : ]] 7 [ Provided further that the Co-investment Portfolio Manager may designate a member of the Key Investment Team of the Manager as the principal officer who fulfils either of the criteria specified in clause (g) of regulation 4 of the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 , and in that case the requirement under clause (d) shall not apply to the principal officer so appointed; ] (e) In addition to the Principal Officer and Compliance Officer, the applicant has in its employment at least one person with the following qualifications :- i. graduation from a university or an institution recognized by the Central Government or any State Government or a foreign university; and ii. an experience of at least two years in related activities in the securities market including in a portfolio manager, stock broker, investment advisor or as a fund manager: Provided that any employee of the Portfolio Manager who has decision making authority related to fund management shall have the same 5 [ minimum qualifications, experience and certification ] as specified for the Principal Officer in clause (d) of sub-regulation (2) of regulation 7 : Provided further that a portfolio manager, who was granted a certificate of registration prior to the commencement of the Securities and Exchange Board of India (Portfolio Managers) Regulations, 2020 , shall comply with sub clauses (i) and (ii) of clause (e) of sub-regulation (2) of regulation 7 within twelve months from such commencement 8 [ : ] 9 [ Provided further that the requirement under clause(e) above shall not apply to Co-investment Portfolio Manager; ] (f) any disciplinary action has been taken by the Board against a person directly or indirectly connected with the applicant under the Act or the rules or the regulations made thereunder; Explanation . For the purposes of sub-clause (f), the expression person directly or indirectly connected means any person being an associate, subsidiary company or an associate company within the meaning of sub-section (6) of section 2 of the Companies Act, 2013; (g) the applicant fulfills the net worth requirement specified in regulation 9 10 [ : ] 11 [ Provided that the requirement under clause(g) shall not apply to the Co-investment Portfolio Manager; ] (h) the applicant, its director or partner, principal officer, compliance officer or the employee as specified in clause (e) is involved in any litigation connected with the securities market that has an adverse bearing on the business of the applicant; (i) the applicant, its director or partner, principal officer, compliance officer or the employee as specified in clause (e) has at any time been convicted for any offence involving moral turpitude or has been found guilty of any economic offence; (j) the applicant is a fit and proper person; (k) the grant of certificate to the applicant is in the interest of investors. *************** NOTES:- 1. Substituted vide Notification No. SEBI/LAD-NRO/GN/2021/10 dated 16-03-2021 before it was read as, i. a professional qualification in finance, law, accountancy or business management from a university or an institution recognized by the Central Government or any State Government or a foreign university or a CFA charter from the CFA institute; 2. Substituted vide Notification No. SEBI/LAD-NRO/GN/2021/10 dated 16-03-2021 before it was read as . 3. Substituted vide Notification No. SEBI/LAD-NRO/GN/2021/10 dated 16-03-2021 before it was read as . 4. Inserted vide Notification No. SEBI/LAD-NRO/GN/2021/10 dated 16-03-2021 5. Substituted vide Notification No. SEBI/LAD-NRO/GN/2021/10 dated 16-03-2021 before it was read as minimum qualifications and experience 6. Substituted vide Notification No. SEBI/LAD-NRO/GN/2021/58 dated 09-11-2021 w.e.f. 09-12-2021 before it was read as . 7. Inserted vide Notification No. SEBI/LAD-NRO/GN/2021/58 dated 09-11-2021 w.e.f. 09-12-2021 8. Substituted vide Notification No. SEBI/LAD-NRO/GN/2021/58 dated 09-11-2021 w.e.f. 09-12-2021 before it was read as ; 9. Inserted vide Notification No. SEBI/LAD-NRO/GN/2021/58 dated 09-11-2021 w.e.f. 09-12-2021 10. Substituted vide Notification No. SEBI/LAD-NRO/GN/2021/58 dated 09-11-2021 w.e.f. 09-12-2021 before it was read as ; 11. Inserted vide Notification No. SEBI/LAD-NRO/GN/2021/58 dated 09-11-2021 w.e.f. 09-12-2021