What is a portfolio?
The SEBI (Portfolio Manager) Regulation 2020 provides the eligibility conditions for a person to be appointed a Portfolio Manager. A portfolio means the total holdings of securities belonging to any person. Simply put, it is a curated collection of assets with financial value. The portfolio may include various financial investments like stocks, bonds, liquid assets, commodities, etc.
Who is a portfolio manager?
They’re the ones who manage clients’ portfolios of securities, goods, or funds on their behalf. They’re like financial superheroes, advising clients on their portfolios and even dealing with goods like gold or oil. But they’re not just anyone, they must be registered under Portfolio Manager Regulations and obtain a registration certificate to function as portfolio managers.
Registration of application
The applicant must provide any information and clarification as SEBI requires, except in rare scenarios where the principal officers must appear personally. There is no specific time limit for the validity of a certificate of registration provided by the Board; it is valid until it is cancelled or suspended. The board also has the option to reject the application, and the decision has to be communicated to the applicant within 30 days. The board shall reject the application only after providing a proper opportunity to be heard.
Principal officer
The principal officer is usually an employee of the portfolio manager and is responsible for the portfolio manager’s operations and decisions regarding the administration of the client portfolio. The principal officer also maintains the book of accounts, records, and documents.
Qualifications of Principal Officers
The principal officer needs to have the following qualifications for the application to be considered by SEBI:
- The principal officer must have professional qualifications in finance, law, accountancy, or business management from a university or an institution recognised by the government or a foreign university.
- They are also qualified if they complete a Postgraduate Program in the Securities Market (Portfolio Management) from the National Institute of Securities Market (NISM) that lasts at least one year.
- By Obtaining a CFA charter from the CFA institute.
- They need at least five years of experience in securities market activities. They should also occasionally have the NISM certification specified by SEBI.
- It should be noted that if the registration certification was provided before the onset of this regulation, the qualifications must be met within 36 months of its commencement.
Done By: Sri Sai Kamalini M.S , B.A LL.B (Hons.), LLM ( Corporate law and Financial policy),Junior Legal Consultant
For Origin Law Labs
