Compliance with Regulation 16(8) of SEBI (Portfolio Managers) Regulations, 1993
Summary
SEBI mandates that non-compliant Portfolio Managers must immediately cease onboarding new clients until full compliance is achieved. These entities are required to submit monthly progress reports regarding their compliance status. Additionally, client securities held in pool accounts as of May 11, 2009, are frozen for fresh purchases but allow for selling and transfers to individual client accounts.
Text
those portfolio managers, who have not complied with the said requirement... shall immediately stop undertaking new clients for portfolio management services till the time they become fully compliant
Such portfolio managers shall submit a monthly progress report in regard to status of compliance
Client securities which are held in a pool account as on May 11, 2009 shall be frozen with respect to any further transactions
Selling of securities, however, from such pool account shall be permitted
Transfer of securities from such pool account to respective client’s account shall also be permitted
No fresh purchases on behalf of such clients should be made
The above is without prejudice to SEBI’ s rights to take such actions against them for the said non-compliance as may be deemed appropriate
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 16(8) and Regulation 39 of the SEBI (Portfolio Managers) Regulations, 1993
Source: SecMarx — Compliance with Regulation 16(8) of SEBI (Portfolio Managers) Regulations, 1993. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.