{"id":3696,"date":"2021-03-26T05:37:15","date_gmt":"2021-03-26T05:37:15","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=3696"},"modified":"2021-03-26T05:37:18","modified_gmt":"2021-03-26T05:37:18","slug":"sebi-portfolio-managers-amendment-regulations-2021","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/sebi-portfolio-managers-amendment-regulations-2021\/","title":{"rendered":"SEBI (Portfolio Managers) (Amendment) Regulations 2021: A Guide"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The SEBI (Securities and Exchange Board\nof India), by way of the powers provided under the provisions of section 30\nsubsection (1), read with section 11 subsection (2) clause (b) and section 12\nsubsection (1) of the SEBI Act 1992, has passed a Notification No SEBI\/LAD-NRO\/GN\/2021\/10on\n16.03.2021, concerning the SEBI (Portfolio Managers) (Amendment) Regulations\n2021.<\/p>\n\n\n\n<p>Further, these amended rules aim to\nfurther amend or modify the provisions of the SEBI (Portfolio Managers)\nRegulations 2020 and will come into force from the publication date.<\/p>\n\n\n\n<p>In this learning blog, we will deal with\nthe concept of Portfolio Managers, together with the key changes bought through\nthe SEBI (Portfolio Managers) (Amendment) Regulations 2021.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a8c67dd594\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a8c67dd594\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/sebi-portfolio-managers-amendment-regulations-2021\/#Concept_of_Portfolio_Managers\" title=\"Concept of Portfolio Managers\">Concept of Portfolio Managers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/sebi-portfolio-managers-amendment-regulations-2021\/#Key_Provisions_of_the_SEBI_Portfolio_Managers_Amendment_Regulations_2021\" title=\"Key Provisions of the SEBI (Portfolio Managers)\n(Amendment) Regulations 2021\">Key Provisions of the SEBI (Portfolio Managers)\n(Amendment) Regulations 2021<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/sebi-portfolio-managers-amendment-regulations-2021\/#Amendments_in_Regulation_7_2_d\" title=\"Amendments in Regulation 7 (2) (d)\">Amendments in Regulation 7 (2) (d)<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/sebi-portfolio-managers-amendment-regulations-2021\/#Substitution_of_Sub-Clause_i\" title=\"Substitution of Sub-Clause (i)\">Substitution of Sub-Clause (i)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/sebi-portfolio-managers-amendment-regulations-2021\/#Substitution_of_Sub-Clause_iii\" title=\"Substitution of Sub-Clause (iii)\">Substitution of Sub-Clause (iii)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/sebi-portfolio-managers-amendment-regulations-2021\/#Substitution_of_First_and_Second_Proviso\" title=\"Substitution of First and Second Proviso\">Substitution of First and Second Proviso<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/blog\/sebi-portfolio-managers-amendment-regulations-2021\/#Insertion_of_Proviso_after_Second_Proviso\" title=\"Insertion of Proviso after Second Proviso\">Insertion of Proviso after Second Proviso<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/blog\/sebi-portfolio-managers-amendment-regulations-2021\/#Substitution_in_the_First_Proviso_of_Regulation_7_2_e\" title=\"Substitution in the First Proviso of Regulation 7 (2) (e)\">Substitution in the First Proviso of Regulation 7 (2) (e)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/blog\/sebi-portfolio-managers-amendment-regulations-2021\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/swaritadvisors.com\/blog\/sebi-portfolio-managers-amendment-regulations-2021\/#Official_SEBI_Notification\" title=\"Official SEBI Notification\">Official SEBI Notification<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_Portfolio_Managers\"><\/span>Concept of Portfolio Managers<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The term Portfolio Manager means a\nperson or an entity that formulates and implements different investment\nstrategies and plans for individuals or institutional investors. Further, it\nshall be noted that Portfolio Managers are also known as the Investment\nManagers, Asset Managers, Wealth Managers, or Financial Advisors.<\/p>\n\n\n\n<p>Also, one of the key and the primary\nresponsibilities of a Portfolio Manager include to create and manage the client\ninvestment allocations. <\/p>\n\n\n\n<p><strong>The\nkey objectives of Portfolio Management are as follows:<\/strong><\/p>\n\n\n\n<ul><li>Capital Appreciation;<\/li><li>Maximising Returns on Investment (ROI);<\/li><li>To Improve the overall proficiency rate of the Portfolio;<\/li><li>Risk optimisation;<\/li><li>Allocation of Resources Optimally;<\/li><li>Ensuring flexibility of Portfolio;<\/li><li>Protecting Earnings against the Market Risks;<\/li><\/ul>\n\n\n\n<p><strong>Also, Read: <\/strong><mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/code-of-conduct-institutional-mechanism-for-fraud-prevention-by-sebi\/\">Code of Conduct and Institutional Mechanism for Fraud Prevention by SEBI<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Provisions_of_the_SEBI_Portfolio_Managers_Amendment_Regulations_2021\"><\/span>Key Provisions of the SEBI (Portfolio Managers)\n(Amendment) Regulations 2021<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The key provisions or the changes bought\nby way of the SEBI (Portfolio Managers) (Amendment) Regulations 2021 are as\nfollows:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Amendments_in_Regulation_7_2_d\"><\/span>Amendments in Regulation 7 (2) (d)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The amendments made in the provisions of\nthe Regulation 7 sub-regulation (2) clause (d) can be summarised as:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Substitution_of_Sub-Clause_i\"><\/span>Substitution of Sub-Clause (i)<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>(i) a professional qualification in the\narea of finance, accountancy, law, or business management from any university\nor a college acknowledged by the Central Government or by any of the State\nGovernment or by any foreign university, or a professional education by\ncompleting a Post Graduate Program in the field of Securities Markets\n(Portfolio Management) from the NISM of a tenure not less than one year, or a\nprofessional qualification by obtaining a CFA (Chartered Financial Analyst)\ncharter from the CFA Institute.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Substitution_of_Sub-Clause_iii\"><\/span>Substitution of Sub-Clause (iii)<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>In the said sub-clause the symbol \u201c.\u201d\nhas been substituted with the symbol \u201c:\u201d.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Substitution_of_First_and_Second_Proviso\"><\/span>Substitution of First and Second Proviso<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>In the above mentioned provisos the\nsymbol \u201c.\u201d has been substituted with the symbol \u201c:\u201d.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Insertion_of_Proviso_after_Second_Proviso\"><\/span>Insertion of Proviso after Second Proviso<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>After the second proviso a new proviso as\nfollows has been inserted:<\/p>\n\n\n\n<p>Provided further, that a fresh NISM\ncertificate shall be obtained prior to the expiry of the validity of the\nprevailing certification to ensure continuity in the compliance with the\ncertification requirements.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Substitution_in_the_First_Proviso_of_Regulation_7_2_e\"><\/span>Substitution in the First Proviso of Regulation 7 (2) (e)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In the first proviso of the Regulation 7\n(2) (e), the words \u2018minimum qualifications and experience\u2019 has now been\nsubstituted with the words and symbols \u2018minimum qualifications, experience, and\ncertification\u2019.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In a nutshell, the Securities and Exchange Board of India has passed the <a href=\"https:\/\/www.sebi.gov.in\/\">SEBI<\/a> (Portfolio Managers) (Amendments) Regulations 2021 to increase the ambit of the qualification criteria to become a Portfolio Manager in India and to insert the relevant provisos for the same.<\/p>\n\n\n\n<p><strong>Also, Read: <\/strong><mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/sebi-amends-guidelines-for-unique-client-code-and-requirement-of-pan\/\">SEBI Amends Guidelines for Unique Client Code and Requirement of PAN<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Official_SEBI_Notification\"><\/span>Official SEBI Notification<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<a href=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/03\/Official-SEBI-Notification.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\"  data-toolbar=\"bottom\" data-toolbar-fixed=\"off\">Official-SEBI-Notification<br\/><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The SEBI (Securities and Exchange Board of India), by way of the powers provided under the provisions of section 30 subsection (1), read with section 11 subsection (2) clause (b) and section 12 subsection (1) of the SEBI Act 1992, has passed a Notification No SEBI\/LAD-NRO\/GN\/2021\/10on 16.03.2021, concerning the SEBI (Portfolio Managers) (Amendment) Regulations 2021. [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":3698,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[50,64],"tags":[547],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/3696"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=3696"}],"version-history":[{"count":3,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/3696\/revisions"}],"predecessor-version":[{"id":3701,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/3696\/revisions\/3701"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/3698"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=3696"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=3696"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=3696"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}