Regulation 19 - Obligation and Responsibilities of Eligible Fund Managers - Securities And Exchange Board of India (Portfolio Managers) Regulations, 2020

Obligation and Responsibilities of Eligible Fund Managers. 19. 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 thereunder; (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 those 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 the requirement of compliance with this sub-regulation would 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 with this sub-regulation would 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 made thereunder; (13) abide by the provisions in these regulations and circulars / guidelines issued by the Board from time to time.