The Market Regulator, the Securities and Exchange Board of India (SEBI) has issued clarification regarding the Procedure for undertaking Co-investment portfolio management services.
The SEBI (Portfolio Managers) Regulations, 2020 (PMS Regulations) were amended by SEBI (Portfolio Managers) (Fourth Amendment) Regulations, 2021 vide notification no. SEBI/LAD-NRO/GN/2021/58 dtd. 09th November 2021, to facilitate co-investment by investors of Alternative Investment Funds (AIF) through the portfolio management route.
Manager of an AIF who is also SEBI registered Portfolio Manager: Prior intimation to SEBI.
Any other Manager who is not a SEBI registered Portfolio Manager (PM): Such person shall firstly register himself as a PM with SEBI and the registration will be valid to the extent of providing Co-investment services through the portfolio management route. Post to such registration, if he wants to offer portfolio management services other than Co-investment, then he has to comply with all provisions of the PMS Regulations and shall also take prior approval of SEBI.
“Revised formats for monthly reports to SEBI and quarterly reports to clients are introduced so as to include the component of Co-investment offered by Portfolio Manager. The reporting requirements as per the revised formats shall be applicable from 1st April, 2022 onwards,” the SEBI added.
The rules regarding fees and charges as provided in the mentioned Circular shall not extend to Co-investment services.
The rules regarding direct on-boarding of clients by Portfolio Managers as provided in the mentioned Circular shall not extend to Co-investment services.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.
