As per Securities and Exchange Board of India (Portfolio Managers) Regulations, 2020, No person shall act as a Portfolio Manager unless it has obtained a certificate of registration from the Board. The steps have been given below to simplify the procedure for registration as Portfolio Managers.
Step 1: Application will be made in Form A along with the non-refundable application fee. The non-refundable fees can be paid by direct credit in the bank account of SEBI through NEFT/RTGS/IMPS or any other mode allowed by RBI. Alternatively, the application fee can also be paid by way of demand draft drawn in favour of ‘Securities and Exchange Board of India’, payable at Mumbai or at the place where respective regional office is located.
The following information that needs to be given in Form A has been given below:
Name of the Applicant
Name of Contact Person (Compliance Officer/Principal Officer)
Designation of Contact Person
General Information about the Portfolio Manager
Details of Infrastructure Facilities
The above-mentioned pointers are just broad categories, a lot of information needs to be given in Form A for registration as Portfolio Manager.
The Board may require the applicant to furnish further information or clarification regarding
matters relevant to his activity of a portfolio manager for the purposes of disposal of the application.
Step 2 : Various factors will be considered by the Board before granting Certificate of Registration to the Applicant. The Board shall consider :
the applicant is a body corporate;
the applicant has necessary infrastructure;
the applicant has appointed Compliance Officer
the Principal officer has the requisite qualifications;
in addition to Principal officer and Compliance Officer, the applicant has in its employment at least person with the Requisite Qualifications;
Whether any disciplinary action has been taken by the Board against a person directly or indirectly connected with the applicant under the Act or the rules or the regulations made thereunder;
the applicant fulfils the net worth requirement;
the applicant, its director or partner, principal officer, compliance officer or the employee as specified above is involved in any litigation connected with the securities market that has an adverse bearing on the business of the applicant;
the applicant, its director or partner, principal officer, compliance officer or the employee as specified above has at any time been convicted for any offence involving moral turpitude or has been found guilty of any economic offence;
the applicant is a fit and proper person; and
the grant of certificate to the applicant is in the interest of investors.
Step 3:After considering the above factors, if Board is satisfied that the applicant fulfills the requirement as specified above, then Board shall send an intimation to the applicant and on receipt of payment of registration fees, will grant Certificate of Registration in Form B.
Q. Can Board reject the Application for registration as Portfolio Manager?
After considering an application made, if the Board is of the opinion that a certificate should not be granted to the applicant, it may reject the application after giving the applicant a reasonable opportunity of being heard.
The decision of the Board to reject the application shall be communicated to the applicant within thirty days of such decision.
Qualification: Company Secretary Company: Location:
Member Since: 28 Sep 2020 | Total Articles Contributed:2
About Author : Hi, I am a Qualified Company Secretary having Experience of almost 3 years in handling compliances of Public companies, Private Companies, Portfolio Managers, Merchant Bankers and NBFC's (NDT)
The entire contents of this article are solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation by the Author. Compliance Calendar LLP and the Author of this Article do not constitute any sort of professional advice or a formal recommendation. The author has undertaken utmost care to disseminate the true and correct view and doesn’t accept liability for any errors or omissions. You are kindly requested to verify and confirm the updates from the genuine sources before acting on any of the information’s provided hereinabove. Compliance Calendar LLP shall not be responsible for any loss or damage in any circumstances whatsoever.