The government has notified SEBI’s new norms governing PMS, two months after the regulator proposed new norms such as doubling minimum investment amount in PMS to Rs 50 lakh. The changes also include enhancing the minimum net worth of a portfolio manager to Rs 5 crore from Rs 2 crore in three years.
The guidelines have retrospectively come into force from January 16, 2020. SEBI came up with these changes in November.
In addition to the proposed norms in November, the Gazette notification released today says that portfolio managers cannot leverage portfolio of their clients for investment in derivatives. Further, the portfolio manager cannot invest the clients’ funds in the portfolio managed or administered by another portfolio manager.