SEBI: Registration as Portfolio Managers By CS Neha Ahuja


 
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

  • Mobile No.

  • Email

  • General Information about the Portfolio Manager

  • Organization Structure

  • Details of Infrastructure Facilities

  • Business Plan

  • Financial Information

  • Business Information

  • Experience

  • Various Declarations

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 :

Whether

  • 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.

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