SECURITIES AND EXCHANGE BOARD OF INDIA (PORTFOLIO MANAGERS) RULES, 1993. - G.S.R. No.4(E)-F. No. 20(3)SE/92 - SEBI

MINISTRY OF FINANCE (DEPARTMENT OF ECONOMIC AFFAIRS) NOTIFICATION NEW DELHI 7th JANUARY 1993 G.S.R. 4(E) In exercise of the powers conferred by section 29 of the Securities and Exchange Board of India, Act 1992 (15 of 1992), the Central Government hereby makes the following rules, namely: - Short title and commencement 1. (1) These rules may be called the Securities and Exchange Board of India (Portfolio Managers) Rules, 1993. (2) They shall come into force on the date of their publication in the Official Gazette. Definitions 2. In these rules, unless the context otherwise requires:- (a) Act means the Securities and Exchange Board of India, Act 1992 (15 of 1992); (b) body corporate shall have the meaning assigned to it in or under clause (7) of section 2 of the Companies Act, 1956 (1 of 1956); (c) certificate means a certificate of registration issued by the Board; (d) portfolio means the total holdings of securities belonging to any person; (e) portfolio manager means any person who pursuant to a contract or arrangement with a client, advises or directs or undertakes on behalf of the client (whether as a discretionary portfolio manager or otherwise) the management or administration of a portfolio of securities or the funds of the client, as the case may be; (f) discretionary portfolio manager means a portfolio manager who exercises or may, under a contract relating to portfolio management, exercises any degree of discretion as to the investments or management of the portfolio of securities or the funds of the client, as the case may be; (g) regulations means the Securities and Exchange Board of India (Portfolio Managers) Regulations, 1993. No person to act as portfolio manager without certificate 3. No person shall carry on any activity as a portfolio manager unless he holds a certificate granted by the Board under these regulations : Provided that such person, who was engaged as portfolio manager, prior to the coming into force of the Act, may continue to carry on activity as portfolio manager, if he has made an application for such registration, till the disposal of such application. Provided further that nothing in this rule shall apply in case of a merchant banker holding a certificate granted by the Board under the Securities and Exchange Board of India (Merchant Banker) Regulations, 1992 as category I or category II merchant banker, as the case may be: Provided also that a merchant banker acting as a portfolio manager under the second proviso to this rule, shall also be bound by the rules and regulations applicable to a portfolio manager. Conditions for grant or renewal of certificate to portfolio manager 4. The Board may grant or renew a certificate to a portfolio manager subject to the following conditions, namely : (a) the portfolio manager in case of any change in its status and constitution, shall obtain the prior permission of the Board to carry on its activities; (b) he shall pay the amount of fees for registration or renewal, as the case may be, in the manner provided in the regulations; (c) he shall take adequate steps for redressal of grievances of the clients within one month of the date of the receipt of the complaint and keep the Board informed about the number, nature and other particulars of the complaints received; (d) he shall abide by the rules and regulations made under the Act in respect of the activities carried on by the portfolio manager. Period of validity of the certificate 5. The certificate of registration or its renewal, as the case may be, shall be valid for a period of three years from the date of its issue to the portfolio manager. F. No. 20(3)SE/92 Y. VENOGOPAL, REDDY, Jt. Secy.