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Amendment to Regulations — Securities and Exchange Board of India (Portfolio Managers) (Amendment) Regulations, 2019

No. SEBI/LAD-NRO/GN/2019/17—In exercise of the powers conferred by Section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following regulations to further amend the Securities and Exchange Board of India (Portfolio Managers) Regulations, 1993, namely –

1. These Regulations may be called the Securities and Exchange Board of India (Portfolio Managers) (Amendment) Regulations, 2019.

2. They shall come into force on the date of their publication in the Official Gazette.

3. In the Securities and Exchange Board of India (Portfolio Managers) Regulations, 1993, –

    I. in regulation 2, –

      i. for clause (af), the following clauses shall be substituted, namely,-

        “(af) “custodian” means a person who has been granted a certificate of registration to carry on the business of custodian under the Securities and Exchange Board of India (Custodian) Regulations, 1996;

         (ag) “discretionary portfolio manager” means a portfolio manager who exercises or may exercise, under a contract relating to portfolio management, any degree of discretion as to the investments or management of the portfolio of securities or the funds of the client, as the case may be;”

  ii. after clause (b) and before clause (c), the following clause shall be inserted, namely, –

      “(ba) “goods” means the goods notified by the Central Government under clause

       (bc) of section 2 of the Securities Contracts (Regulation) Act, 1956 and forming the underlying of any commodity derivative;”

  iii. in clause (ca), after the word “securities” and before the word “belonging”, the words “and goods” shall be inserted;

iv. in clause (cb), –

  a. after the word “securities” and before the word “or”, the words “or goods” shall be inserted;

  b. the following proviso shall be inserted, namely,-

      “Provided that the Portfolio Manager may also deal in goods received in delivery against physical settlement of commodity derivatives.”

v. for clause (ea), the following clauses shall be substituted, namely,-

   “(ea) “securities” mean securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956;
(eb) “securities lending” means the securities lending as per the Securities Lending Scheme, 1997 specified by the Board;”

II. in regulation 14, in sub-regulation (1), in clause (b), in sub-clause (xii), after the word “securities” and before the symbol “;”, the words “and goods” shall be inserted;

III. in regulation 16B, after sub-regulation (2), following sub-regulation shall be inserted, namely,-

    “(3) Every Portfolio Manager who deals in commodity derivatives shall appoint a custodian.”

IV. in regulation 21, in sub-regulation (1), in clause (a), –

a. after the word “of security” and before the word and symbol “, number”, the words “and goods” shall be inserted;

b. after the word “in the portfolio” and before the word and symbol “, cash”, the words and symbol “, units of goods, value of goods” shall be inserted;

*Please follow the link for detailed notification: NOTIFICATION


[Notification dT. 10-05-2019]

Securities Exchange Board of India

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