EXECUTIVE DIRECTOR
INVESTMENT MANAGEMENT DEPARTMENT
SEBI/IMD/CIR No.2/ 72256 /2006
July 24, 2006
To all Portfolio Managers registered with SEBI
Dear Sirs,
We are enclosing a copy of the gazette notification no. S.O. 997 (E) dated July 5, 2006 pertaining to SEBI ( Portfolio Managers ) (Amendment) Regulations 2006 for your information and implementation.
Yours faithfully,
R K NAIR
Encl : a/a
THE GAZETTE OF INDIA
EXTRAORDINARY
PART –II – SECTION 3 – SUB SECTION (ii)
PUBLISHED BY AUTHORITY
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 5th July, 2006
SECURITIES AND EXCHANGE BOARD OF INDIA
(PORTFOLIO MANAGERS) (AMENDMENT) REGULATIONS, 2006
S.O No. 997 (E). In exercise of the powers conferred by section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following Regulations to further amend the Securities and Exchange Board of India (Portfolio Managers) Regulations, 1993, namely :-
1. These Regulations may be called the Securities and Exchange Board of India (Portfolio Managers) (Amendment) Regulations, 2006.
2. They shall come into force on the date of their publication in the Official Gazette.
3. In the Securities and Exchange Board of India (Portfolio Managers) Regulations, 1993:
(i) in regulation 2, clause (d) shall be substituted with the following, namely:
“(d) ‘principal officer’ means an employee of the portfolio manager who has been designated as such by the portfolio manager;”
(ii) in regulation 6, in sub-regulation (2), clause (c) shall be substituted with the following, namely:
“(c) the principal officer of the applicant has either –
(i) a professional qualification in finance, law, accountancy or business management from a university or an institution recognised by the Central Government or any State Government or a foreign university; or
(ii) an experience of at least ten years in related activities in the securities market including in a portfolio manager, stock broker or as a fund manager.”
(iii) after regulation 16A, the following regulation shall be inserted, namely –
“Appointment of custodian
16B. (1) Every portfolio manager shall appoint a custodian in respect of securities managed or administered by it.
(2) Nothing contained in this regulation shall apply to a portfolio manager –
(a) who has total assets under management of value less than five hundred crore rupees; or
(b) who performs purely advisory functions.”
F.No. SEBI\LAD\DOP\ 70276 \2006
M. DAMODARAN
CHAIRMAN
SECURITIES AND EXCHANGE BOARD OF INDIA
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