Portfolio Managers – Deployment of clients fund in liquid Mutual Funds
Summary
SEBI clarifies that portfolio managers may deploy pending client funds in short-term liquid mutual funds for cash management purposes. This deployment must adhere to the guidelines specified in SEBI circular IMD/DoF-I/PMS/Cir-4/2009 dated June 23, 2009. The directive is issued under Section 11(1) of the SEBI Act and Regulation 39 of the SEBI (Portfolio Managers) Regulations, 1993.
Text
pending investment of funds, any short term deployment of funds in liquid Mutual Funds for the purpose of cash management shall be maintained on the lines as specified by the SEBI circular no. IMD/DoF-I/PMS/Cir-4/2009 dated June 23, 2009.
This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with the provisions of Regulation 39 of the SEBI (Portfolio Managers) Regulations, 1993, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Source: SecMarx — Portfolio Managers – Deployment of clients fund in liquid Mutual Funds. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.