January 7, 2017 3:08:59 am
The Securities and Exchange Board of India (Sebi) has amended the Portfolio Managers Regulations, 1993, for registration of fund managers providing their services to overseas funds. The changes were made with an aim to develop and promote fund management industry in India.
According to a statement issued by the regulator, Section 9A of the Income Tax Act, 1961 was brought to facilitate a ‘safe harbour’ to overseas funds availing fund management services from India-based managers.
“Such overseas funds and fund managers were designated as ‘Eligible Investment Funds’ and ‘Eligible Fund Managers’ respectively.”
To become an ‘Eligible Fund Manager’, managers need to be registered with Sebi under specified regulations.
The move provides a separate Chapter II-A for ‘Eligible Fund Managers’ and permit existing portfolio managers, new applicants, compliant with requirements specified under Section 9A of Income Tax Act.
Existing portfolio managers may pursue this activity on submission of declarations to Sebi and new applicant should seek registration with Sebi, as laid out in the Chapter II-A.
Sebi has identified certain regulations of the PMS Regulations which would not be applicable to Eligible Fund Managers pertaining to their activities as fund manager to Eligible Investment Funds like audit of overseas fund, minimum investment requirements of Rs 25 lakh, the release said. (With FE inputs)
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