{"id":59690,"date":"2022-08-26T12:07:16","date_gmt":"2022-08-26T06:37:16","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=59690"},"modified":"2022-10-15T12:51:43","modified_gmt":"2022-10-15T07:21:43","slug":"assessment-of-sebi-portfolio-managers-amendment-regulations-2022","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/assessment-of-sebi-portfolio-managers-amendment-regulations-2022\/","title":{"rendered":"Assessment of SEBI (Portfolio Managers) (Amendment) Regulations, 2022"},"content":{"rendered":"

On 22nd August 2022, vide notification number SEBI\/LAD-NRO\/GN\/2022\/94, the Securities and Exchange Board of India (SEBI) issued a notification wherein SEBI made some amendments to Portfolio Managers<\/a><\/strong> Regulations vide the SEBI (Portfolio Managers) (Amendment<\/a>) Regulations, 2022. The amendments have been brought to regulate the investments made by the portfolio managers of their clients in the securities of their related parties and their associates.<\/p>\n\n\n\n

Who are Portfolio Managers?<\/h2>\n\n\n\n

Portfolio managers are body corporates who enter into a contractual relationship with their clients to advise them, direct them, or undertake on their behalf the management or administration of their securities of goods or funds.<\/p>\n\n\n\n

Highlights of SEBI (Portfolio Managers) (Amendment) Regulations, 2022<\/h2>\n\n\n\n

These amendments have been made in the existing Securities and Exchange Board of India (Portfolio Managers) Regulations, 2020. Following are the amendments:<\/p>\n\n\n\n

New Clause on Related Parties<\/h3>\n\n\n\n

SEBI has inserted a new clause (pa) after Regulation 2(1)(p). This new clause adds the concept of “related party” in relation to the portfolio manager, which includes the following parties within its ambit:<\/p>\n\n\n\n

  1. A director or partner or his relative;<\/li>
  2. Key managerial personnel (KMP) or his relative;<\/li>
  3. A firm where a Partner, Director, Manager or his relative is a Partner;<\/li>
  4. A Private Company where a Partner, Director or Manager, or his relative is a member or Director;<\/li>
  5. A Public company where a Partner, Director or Manager is a Director or holds along with its relatives more than 2% of its paid-up share capital;<\/li>
  6. A Body corporate whose board of directors (BOD), Managing Director (MD) or manager is accustomed to acting as per the advice, instructions or directions of a partner, Director or manager;<\/li>
  7. Any person on whose advice, instructions or directions a partner, Director or manager is accustomed to act;<\/li>
  8. A body corporate that is a:<\/li><\/ol>\n\n\n\n

    (A) A holding, associate or subsidiary company of the portfolio manager; or<\/p>\n\n\n\n

    (B) A subsidiary of a holding company to which the portfolio manager is a subsidiary;<\/p>\n\n\n\n

    (C) An investing company or the venture of the portfolio manager;<\/p>\n\n\n\n