SEBI, vide its circular dated January 10, 2023 partially modified para 2 (iv) of the Circular dated June 2, 2022 where SEBI specified the procedure for seeking prior approval in case of change in control of Portfolio Manager.
| Para 2 (iv) under Circular dated June 2, 2022 | Para 2 (iv) under Circular dated June 10, 2023 | Comment |
| Pursuant to grant of prior approval by SEBI, in order to enable existing investors/ clients to take well informed decision regarding their continuance or otherwise with the changed management, the portfolio manager shall inform its existing investors/ clients about the proposed change prior to effecting the same and give an option to exit without any exit load, within a period of not less than 30 calendar days, from the date of such communication. | “Pursuant to grant of prior approval by SEBI, in order to enable existing investors/ clients to take well informed decision regarding their continuance or otherwise with the changed management, the portfolio manager shall inform its existing investors/ clients about the proposed change prior to effecting the same and give an option to exit without any exit load, within a period of not less than 30 calendar days, from the date of such communication. However, for the clients under co-investment portfolio management services, the Portfolio Manager shall ensure compliance with the second proviso of Regulation 22 (2) of PMS Regulations.” | With this modification, an additional requirement has been placed on portfolio management services to comply with Regulation 22(2) of PMS Regulations for the clients under co-investment portfolio management services. Regulation 22(2) of PMS Regulations terms to be included in the agreement between the portfolio manager and the client. |
All other requirements, terms and conditions specified in the Circular shall remain unchanged.
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