Investment of clients' moneys and management of clients' portfolio of securities

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....n the agreement referred to in regulation 14, the funds or securities can be withdrawn or taken back by the client before the maturity of the contract under the following circumstances, namely- (a) voluntary or compulsory termination of portfolio management services by the portfolio manager or the client. (b) suspension or cancellation of the certificate of registration of the portfolio manager by the Board. (c) bankruptcy or liquidation of the portfolio manager.] (3) The portfolio manager shall invest funds of his clients in money market instruments ^5[or derivatives] or as specified in the contract: ^6[Provided that leveraging of portfolio shall not be permitted in respect of investment in derivatives:] Provided ^7[furth....

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....ities and be responsible for safekeeping of clients' funds and securities. ^9[(8) The portfolio manager shall not hold the listed securities ^10[or unlisted securities], belonging to the portfolio account, in its own name on behalf of its clients either by virtue of contract with clients or otherwise: Provided that any portfolio manager holding the listed securities belonging to the portfolio account in its own name on behalf of its clients on the date of commencement of the Securities and Exchange Board of India (Portfolio Managers) (Amendment) Regulations, 2008 shall segregate each clients' listed securities and keep them separately within six months from such commencement: Provided further that the Board may in the interest ....

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....he words "and shall be for a minimum period of one year"omitted by the SEBI (Portfolio Managers) (Amendment) Regulations, 2002, w.e.f. 11-10-2002. 4 Substituted by the SEBI (Portfolio Managers) (Amendment) Regulations, 2002, w.e.f. 11-10-2002. Prior to substitution, sub-regulation (2) read as under: "(2) Notwithstanding anything contained in the agreement between a portfolio manager and his client, referred to in regulation 14 hereof, the, portfolio funds can be withdrawn or taken back by portfolio client at his risk before the maturity date of the contract under the following circumstances, namely:- (a) Voluntary or compulsory, termination of Portfolio management services by the Portfolio manager; (b) suspension or termination ....