Sebi details operating guidelines for PMS in IFSC

The markets regulator also prescribed that the minimum amount of funds to be accepted by portfolio managers operating in IFSC should be $70,000.

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Sebi said such guidelines are put in place based on the representations received from various stakeholders.
Mumbai: The Securities and Exchange Board of India (Sebi) on Wednesday detailed operating guidelines for portfolio management services at the international financial services centre (IFSC), and said the applicants need to have a minimum net worth of at least $7,50,000.

The markets regulator also prescribed that the minimum amount of funds to be accepted by portfolio managers operating in IFSC should be $70,000.

Sebi said such guidelines are put in place based on the representations received from various stakeholders.


It said that any Sebi-registered intermediary, other than trading or clearing members, or its international associates in collaboration with such Sebi-registered intermediary may provide portfolio management services in IFSC, by setting up a branch in IFSC.

Such an entity should ensure that exclusive manpower is allocated for providing portfolio management services from the branch in IFSC, and the parent entity will be required to ring fence its domestic operations, legally, financially, operationally and technologically, from its operations at IFSC.

The regulator also said that the principal officer and employee having decision making authority related to fund management and who are resident outside India may have certification from any other organization or institution or association or stock exchange which is recognized or accredited by a financial market regulator in that foreign jurisdiction. However, certification from NISM is mandatory if they deal in Indian securities markets.
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