Operating Guidelines for Portfolio Managers in International Financial Services Centre (IFSC)
Summary
This circular issues operating guidelines for Portfolio Managers (PMs) establishing or operating within an International Financial Services Centre (IFSC). It mandates that existing SEBI PMS Regulations and IFSC Guidelines apply mutatis mutandis, subject to these specific operational rules. The document outlines registration procedures, net worth requirements, client eligibility, and fee structures for PMs in the IFSC.
Text
All provisions of the PMS Regulations, the guidelines and circulars issued thereunder, shall apply mutatis mutandis to Portfolio Managers setting up/ operating in IFSC subject to these operating guidelines.
An application for grant of certificate of registration shall be made in accordance with the provisions of Chapter II of the PMS Regulations, accompanied by a non-refundable application fee as stated in Clause 5 of this Annexure.
Any SEBI-registered intermediary (except trading member or clearing member) or its international associates in collaboration with such SEBI-registered intermediary may provide portfolio management services in IFSC, by setting up a branch in IFSC, subject to the prior approval of the Board.
Exclusive manpower shall be allocated for providing portfolio management services from the branch in IFSC.
The parent entity shall be required to ring fence its domestic operations, legally, financially, operationally and technologically, from its operations at IFSC.
The obligation of ensuring that the branch complies with PMS Regulations, IFSC Guidelines, and Circulars issued thereunder, shall be on the parent entity.
The Board may grant certificate/ approval if it is satisfied that the applicant fulfils the requirements as specified in the PMS Regulations read with these operating guidelines.
Where the PM in IFSC proposes to change its status or constitution, it shall obtain prior approval of the Board for continuing to act as such after the change.
Principal officer and employee having decision making authority related to fund management and who are resident outside India may have certification from any other organization or institution or association or stock exchange which is recognized/ accredited by a Financial Market regulator in that foreign jurisdiction.
However, certification from NISM shall be mandatory in case the aforesaid persons deal in Indian securities markets.
Applicants referred to in para 2 shall have a net worth of not less than USD 750,000.
In case the PM is set up as a branch, the net worth requirement is to be met by the parent entity.
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Source: SecMarx — Operating Guidelines for Portfolio Managers in International Financial Services Centre (IFSC). Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.