Sebi proposes increase in minimum net worth of portfolio managers to Rs 5 cr

Markets regulator Sebi on Friday came out with a consultation paper to amend portfolio managers' norms, including the proposal to increase minimum net worth requirement of a portfolio manager to Rs 5 crore from the current Rs 2 crore.

Sebi also proposed to raise the minimum investment amount to Rs 50 lakh from Rs 25 lakh.

The proposals floated by Sebi are based on recommendations of the working group that has proposed changes in the Sebi (Portfolio Managers) Regulations, 1993.

While making recommendations on a range of issues pertaining to portfolio managers, the working group proposed to amend definition of principal officer besides enhancing the minimum educational qualification requirements.

According to the recommendations, portfolio managers may be permitted to invest only in listed securities (equity, debt or commodity derivatives) and units of mutual funds, on behalf of their clients. Currently, no such restrictions exist.

Periodic reports should be furnished to clients at ...