SEBI has released a Master Circular dated June 7, 2024, addressed to all Portfolio Managers and the Association of Portfolio Managers in India (APMI). The circular aims to streamline the regulations governing Portfolio Managers by consolidating various circulars issued by SEBI until November 30, 2022. This consolidation is intended to provide stakeholders with easy access to all applicable requirements in one document. The previous Master Circular for Portfolio Managers, dated March 20, 2023, incorporated provisions from previous circulars up to that date. Now, in light of subsequent guidelines and directions issued to Portfolio Managers, the current Master Circular has been updated to include all relevant circulars issued until March 31, 2024. Consequently, this new Master Circular supersedes the previous one from 2023.
It’s highlighted that with the issuance of the March 20, 2023 Master Circular, guidelines contained in specific circulars listed out in the Annexure Z to that circular were rescinded. Similarly, the guidelines contained in certain circulars listed at serial numbers 33-36 in the Appendix to the current Master Circular, to the extent they relate to Portfolio Managers, shall stand rescinded. However, directions or guidance specifically applicable to Portfolio Managers issued by SEBI will remain in force alongside any other relevant laws.
The circular also clarifies the status of actions taken under rescinded circulars. It states that actions taken under previous circulars, such as registrations, approvals, fees collected, or penalties incurred, will be deemed to have been done under the corresponding provisions of the new Master Circular. Pending applications will also be considered under the new provisions. Moreover, previous operations, rights, liabilities, and legal proceedings will remain unaffected by the rescission of previous circulars.
Securities and Exchange Board of India
Master Circular No. SEBI/HO/IMD/IMD-POD-1/P/CIR/2024/80 Dated: June 07, 2024
To,
All Portfolio Managers
Association of Portfolio Managers in India (‘APMI’)
Sir / Madam,
Subject: Master Circular for Portfolio Managers
A. For effective regulation of Portfolio Managers, the Securities and Exchange Board of India (“SEBI”) has been issuing various circulars from time to time. In order to enable the stakeholders to have an access to all the applicable requirements at one place, the provisions of the said circulars issued till November 30, 2022 were incorporated in the Master Circular for Portfolio Managers dated March 20, 2023.
B. Subsequently, various guidelines/directions were issued to Portfolio Managers by way of circulars/letters. In view of the same, the Master Circular dated March 20, 2023 has been updated to include all relevant circulars that were issued on/before March 31, 2024. The instant Master Circular supersedes the Master Circular for Portfolio Managers dated March 20, 2023.
C. Vide Master Circular for Portfolio Managers dated March 20, 2023, the guidelines/directions contained in the circulars listed out in the Annexure Z to that Master Circular were rescinded. In addition, with the issuance of this Master Circular, the guidelines/directions contained in the circulars listed out at Sr. Nos.33-36 in the Appendix to this Master Circular, to the extent they relate to the Portfolio Managers, shall stand rescinded.
D. With respect to the directions or other guidance issued by SEBI, as specifically applicable to Portfolio Managers, the same shall continue to remain in force in addition to the provisions of any other law for the time being in force. Terms not defined in this Master Circular shall have the same meaning as provided under the relevant Regulations.
E. Notwithstanding such rescission,
E1. anything done or any action taken or purported to have been done or taken under the rescinded circulars, including registrations or approvals granted, fees collected, registration suspended or cancelled, any inspection or investigation or enquiry or adjudication commenced or show cause notice issued prior to such rescission, shall be deemed to have been done or taken under the corresponding provisions of this Master Circular;
E2. any application made to SEBI under the rescinded circulars, prior to such rescission, and pending before it shall be deemed to have been made under the corresponding provisions of this Master Circular;
E3. the previous operation of the rescinded circulars or anything duly done or suffered thereunder, any right, privilege, obligation or liability acquired, accrued or incurred under the rescinded circulars, any penalty, incurred in respect of any violation committed against the rescinded circulars, or any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty as aforesaid, shall remain unaffected as if the rescinded circulars have never been rescinded;
F. Pursuant to issuance of this Master Circular, the entities which are required to ensure compliance with various provisions shall submit necessary reports as envisaged in this Master Circular on a periodic/ continuous basis.
G. This Master Circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
H. This Master Circular is available on the SEBI website at https://www.sebi.gov.in/ under the category “Legal -> Master Circulars”.
Yours faithfully,
Peter Mardi
Deputy General Manager
Investment Management Department
Tel: 022 – 26449233
Email: peterm@sebi.gov.in
