Home Acts & Rules SEBI Regulation Securities And Exchange Board of India (Portfolio Managers) Regulations, 2020 Chapters List Chapter IV GENERAL OBLIGATIONS AND RESPONSIBILITIES This
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Regulation 23 - General responsibilities of a Portfolio Manager - Securities And Exchange Board of India (Portfolio Managers) Regulations, 2020Extract General responsibilities of a Portfolio Manager. 23. (1) The discretionary portfolio manager shall individually and independently manage the funds of each client in accordance with the needs of the client, in a manner which does not partake character of a Mutual Fund, whereas the non-discretionary portfolio manager shall manage the funds in accordance with the directions of the client. (2) The portfolio manager shall not accept from the client, funds or securities worth less than fifty lakh rupees: Provided that the minimum investment amount per client shall be applicable for new clients and fresh investments by existing clients: 1 [ Provided further that subject to appropriate disclosures in the disclosure document and the terms agreed between the client and the portfolio manager, the requirement of minimum investment amount per client shall not apply to an accredited investor: ] 2 [ Provided further that the requirement of minimum investment amount per client shall not apply to the Co-investment Portfolio Manager: ] Provided further that existing investments of clients, as on the date of notification of the Securities and Exchange Board of India (Portfolio Managers) Regulations, 2020 , may continue as such till maturity of the investment or as specified by the Board. (3) The portfolio manager shall act in a fiduciary capacity with regard to the client's funds. (4) The portfolio manager shall segregate each client s holding in securities in separate accounts. (5) The portfolio manager shall keep the funds of all clients in a separate account to be maintained by it in a Scheduled Commercial Bank. Explanation . ─ For the purposes of this sub-regulation, the expression Scheduled Commercial Bank means any bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934). (6) The portfolio manager shall transact in securities within the limitation placed by the client himself with regard to dealing in securities under the provisions of the Reserve Bank of India Act, 1934 (2 of 1934). (7) The portfolio manager shall not derive any direct or indirect benefit out of the client's funds or securities. (8) The portfolio manager shall not borrow funds or securities on behalf of the client. (9) The portfolio manager shall not lend securities held on behalf of the clients to a third person except as provided under these regulations. (10) The portfolio manager shall ensure proper and timely handling of complaints from his clients and take appropriate action immediately. (11) The portfolio manager shall ensure that any person or entity involved in the distribution of its services is carrying out the distribution activities in compliance with these regulations and circulars issued thereunder from time to time. ************* NOTES:- 1. Inserted vide Notification No. SEBI/LAD-NRO/GN/2021/31 dated 03-08-2021 2. Inserted vide Notification No. SEBI/LAD-NRO/GN/2021/58 dated 09-11-2021 w.e.f. 09-12-2021
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