The Securities and Exchange Board of India vide its notification dated 9th September 2020 has been decided to put in place Operating Guidelines for Portfolio Managers in IFSC, in which an entity, being a company or a limited liability partnership (LLP), which has the minimum prescribed net worth can act as a PM in IFSC.
Any SEBI registered intermediary (except trading member or clearing member) or its International associates in collaboration with such SEBI-registered intermediary may provide portfolio management services in IFSC, by setting up a branch in IFSC, subject to the prior approval of the Board. Further, it shall ensure that Exclusive manpower shall be allocated for providing portfolio management services from the branch in IFSC.
PMs shall ensure that, when dealing with person’s resident outside India and non-resident Indians seeking portfolio management services from them, the PM complies with the applicable guidelines issued by the relevant overseas regulator/ authority and the PM operating in IFSC shall not accept from the client, funds or securities worth less than USD 70,000.
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