India:
The Securities And Exchange Board Of India Vide Circular No. SEBI/HO/IMD/DF1/CIR/P/2020/26 Dated 13th February 2020 Issues Guidelines For Portfolio Managers
28 February 2020
Lex Favios
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- The new norms governing Portfolio
Managers services, doubling a portfolio manager's net worth
requirement to ₹5 crore, giving the existing ones three years
to meet the revised norms.
- The minimum investment amount for
investors in Portfolio Management Schemes (PMS) is hiked from
₹25 lakh to ₹50 lakh.
- Portfolio managers offering
non-discretionary or advisory services to clients may invest or
provide advice for investment up to 25% of the assets under
management of such clients in unlisted securities, in addition to
the securities permitted for discretionary portfolio
management.
- The new norms for portfolio managers
are aimed at curbing mis-selling and weeding out dubious operators.
Portfolio managers have in the recent past attracted criticism and
scrutiny over misguiding their clients, who are mostly high net
worth individuals.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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