SEBI Tightens Risk Management Framework Of Liquid Funds And Prudential Norms Governing Investments In Debt Instruments
Market regulator Securities and Exchange Board of India (SEBI) on Wednesday doubled the minimum investment limit by clients in a portfolio management service (PMS) to Rs 50 lakh.
It also enhanced the net worth requirement of portfolio managers to Rs 5 crore from Rs 2 crore.
"The portfolio managers regulations have been thoroughly revised. Existing portfolio managers must meet the enhanced requirement within 36 months," said SEBI chairman Ajay Tyagi.
The regulator has also made it mandatory for all portfolio managers except those providing only advisory services to appoint a custodian.
Non-discretionary advisory portfolio managers will not be allowed to invest more than 25 per cent of their asset under management (AUM) in unlisted securities.
Tyagi said the objective is to get more openness to help investors. However, existing investments will be allowed to continue until the end of the PMS agreement. The decisions were taken at the SEBI board meeting earlier during the day.
SEBI has also extended the Business Responsibility Report (BRR) requirement to top 1,000 companies, from 500 currently. In case of default in repayment of principal or interest on loans beyond 30 days, listed companies will have to disclose the fact of such default within 24 hours.
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