Limits on related party investments require client consent and disclosure, with rebalancing and credit rating restrictions for portfolio managers SEBI requires Portfolio Managers to comply with prudential ceilings on direct investments in securities of their associates/related parties, obtain one time prior positive consent from clients (allowing dissent or lower limits), rebalance portfolios within 90 days after passive breaches unless waived by client consent, restrict investments in below investment grade debt/hybrid securities (with narrower exceptions for non discretionary managers), and provide detailed disclosures and updates in periodic reports and the Disclosure Document.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Limits on related party investments require client consent and disclosure, with rebalancing and credit rating restrictions for portfolio managers
SEBI requires Portfolio Managers to comply with prudential ceilings on direct investments in securities of their associates/related parties, obtain one time prior positive consent from clients (allowing dissent or lower limits), rebalance portfolios within 90 days after passive breaches unless waived by client consent, restrict investments in below investment grade debt/hybrid securities (with narrower exceptions for non discretionary managers), and provide detailed disclosures and updates in periodic reports and the Disclosure Document.
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