Conventus Law

Conventus Law

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20 January 2022
 

SEBI, vide a circular dated 10 December 2021 has provided certain clarifications in relation to the amendment to the Securities and Exchange Board of India (Portfolio Managers) Regulations, 2020 (“PMS Regulations”) which facilitates coinvestment by investors of Alternative Investment Funds (“AIF”) under the portfolio management route. Through the abovementioned circular SEBI has clarified that a manager of an AIF which is also a portfolio manager registered with SEBI, may offer co-investment services only after providing prior intimation to SEBI. Further, an AIF manager who is not a SEBI registered portfolio manager, and intends to offer co-investment services through the portfolio management route, shall be required to obtain registration with SEBI as a portfolio manager under the PMS Regulations.
 

The circular clarifies that portfolio managers shall be required to submit a monthly report regarding their portfolio management activity, on the SEBI portal within 7 (seven) working days from the end of each month and furnish a report to their clients on a quarterly basis which includes details of the co-investment services offered by the portfolio manager.
 
The amendment further clarifies that the provisions with respect to fees and charges as well as direct on-boarding of clients by portfolio managers shall not be applicable to co-investment services.
 
The amendment shall be applicable for the monthly reports to SEBI and quarterly reports to clients to be made from the month of April 2022 onwards. The remaining provisions of the circular shall come into effect from the date of applicability of the PMS Regulations.
 
Please click here to read the circular.
 

 

For further information, please contact:  

Souvik Ganguly, Partner, Acuity Law

al@acuitylaw.co.in  

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