The International Financial Service Centres Authority on 26th April 2021 has notified the guidelines on Offering of Portfolio Management Service (PMS) and Investment AdvisoryService (IAS) by Banking units.
As per the IFSC (Banking) (Amendment) Regulation, 2021, Banking units where permitted to undertake the following additional activities:
- offering Portfolio Management services to person resident in India and persons resident outside India
- offering Investment Advisory services to person resident in India and persons resident outside India
The banking units desirous of offering PMS in IFSC may apply for registration to the Authority and shall maintain a ‘Clients’ Portfolio Account’ in its general ledger, reflecting the funds received by it for portfolio management on a day-to-day basis.
Further the BUs are permitted to offer PMS are also permitted to provide incidental investment advice to their PMS clients, provided that BUs shall comply with the general obligations and responsibilities specified for Investment Advisers.
