The Securities and Exchange Board of India (SEBI) has notified that Portfolio Manager shall offer Advisory services for investment up to 100% of assets under management of large value accredited investors in Unlisted Securities.
The SEBI has notified the Securities and Exchange Board of India (Portfolio Managers) (Third Amendment) Regulations, 2021 which seeks to amend the Securities and Exchange Board of India (Portfolio Managers) Regulations, 2020.
In the Securities and Exchange Board of India (Portfolio Managers) Regulations, 2020, in sub-regulation (1) of regulation 2, after clause (a) and before clause (b), the clauses shall be inserted, namely, “(aa) “accreditation agency” shall have the same meaning as assigned to it in clause (aa) of sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012; (ab) “accredited investor” means any person who fulfils the eligibility criteria as specified by the Board and is granted a certificate of accreditation by an accreditation agency;”
After clause (l) and before clause (m), the clauses shall be inserted, namely, “(la) “large value accredited investor” means an accredited investor who has entered into an agreement with the portfolio manager for a minimum investment amount of ten crore rupees”.
In regulation 22, in sub-regulation (1), the proviso shall be inserted, namely, “Provided that the contents of agreement specified under Schedule IV of these regulations shall not apply to the agreement between the portfolio managers and the large value accredited investors.”
In sub-regulation (2) of regulation 23, after the first proviso, the following proviso shall be inserted, namely “Provided further that subject to appropriate disclosures in the disclosure document and the terms agreed between the client and the portfolio manager, the requirement of minimum investment amount per client shall not apply to an accredited investor:”
After sub-regulation (4) of regulation 24, the sub-regulation 4A shall be inserted, namely, “The portfolio manager may offer discretionary or non-discretionary or advisory services for investment up to hundred percent of the assets under management of the large value accredited investors in unlisted securities, subject to appropriate disclosures in the disclosure document and the terms agreed between the client and the portfolio manager.”
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