Master Circular for Portfolio Managers

SEBI/HO/IMD/IMD-POD-1/P/CIR/2023/38 · 2023-03-20 · SEBI Investment Management Department

Summary

This section establishes the Master Circular as a consolidated compilation of SEBI regulations for Portfolio Managers effective from its issuance date. It rescinds previous circulars listed in Annexure Z while preserving the validity of actions, applications, and liabilities arising under those rescinded rules. The document outlines specific transition dates for certain provisions and cites Section 11(1) of the SEBI Act as the enabling legal authority. This section outlines the application procedure and general guidelines for registration as a Portfolio Manager under SEBI regulations. It defines criteria for granting registration to same-group entities and establishes procedures for co-investment services and changes in control. The text also includes an index of annexures and a list of abbreviations relevant to the master circular. This section mandates specific procedural steps for Portfolio Managers seeking NCLT sanction for schemes of arrangement, including prior SEBI approval. It establishes certification requirements for employees and distributors involved in fund management and distribution services. Additionally, it outlines operating guidelines regarding advertising codes,

Text

In order to enable the stakeholders to have an access to all the applicable requirements at one place, the provisions of the said circulars issued till November 30, 2022 are incorporated in this Master Circular for Portfolio Managers.

This Master Circular shall come into force from the date of its issue. The circulars mentioned in Annexure – Z of this Master Circular shall stand rescinded with the issuance of the Master Circular.

With respect to the directions or other guidance issued by SEBI, as specifically applicable to Portfolio Managers, the same shall continue to remain in force in addition to the provisions of any other law for the time being in force.

anything done or any action taken or purported to have been done or taken under the rescinded circulars... shall be deemed to have been done or taken under the corresponding provisions of this Master Circular;

any application made to SEBI under the rescinded circulars, prior to such rescission, and pending before it shall be deemed to have been made under the corresponding provisions of this Master Circular;

the previous operation of the rescinded circulars or anything duly done or suffered thereunder, any right, privilege, obligation or liability acquired, accrued or incurred under the rescinded circulars... shall remain unaffected as if the rescinded circulars have never been rescinded;

Pursuant to issuance of this Master Circular, the entities which are required to ensure compliance with various provisions shall submit necessary reports as envisaged in this Master Circular on a periodic/ continuous basis.

The provisions mentioned at paragraphs 2.6 & 2.7 of this Master Circular shall be applicable with effect from April 01, 2023.

The provisions mentioned at paragraphs 5.4.3 & 5.4.4 of this Master Circular shall come into effect from the quarter ending September 2023.

This Master Circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

All entities desirous to be registered as Portfolio Manager, are required to file an online application on SEBI Intermediary Portal (https://siportal.sebi.gov.in).

An applicant is required to furnish the application in Form A as specified in the Securities and Exchange Board of India (Portfolio Managers) Regulations, 2020 (“PM Regulations”), to SEBI for registration as a Portfolio Manager.

Source: SecMarx — Master Circular for Portfolio Managers. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.