Operating Guidelines for Portfolio Managers in International Financial Services Centre (IFSC)

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.... Zones Act, 2005. The IFSC Guidelines and related Circulars issued by SEBI from time to time provide for a broad framework for operation of various intermediaries (including Portfolio Managers) therein, as defined in Clause 2(1)(g) of the IFSC Guidelines. Further, in terms of Clause 3(1) of the IFSC Guidelines, SEBI can issue guidelines for any entity desirous of undertaking any other financial services relating to securities market. 2. Based on the representations received from various stakeholders, it has been decided to put in place 'Operating Guidelines for Portfolio Managers in IFSC'. The same is annexed herewith. 3. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of In....

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....on fee as stated in Clause 5 of this Annexure. b. An entity, being a company or a limited liability partnership (LLP), which has the minimum prescribed net worth as specified herein can act as a PM in IFSC, in the following forms- i. 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. * The branch shall comply with all the provisions (except obtaining Regis....

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.... regulator in that foreign jurisdiction. However, certification from NISM shall be mandatory in case the aforesaid persons deal in Indian securities markets. b. Net Worth Requirement i. Applicants referred to in para 2 shall have a net worth of not less than USD 750,000. ii. In case the PM is set up as a branch, the net worth requirement is to be met by the parent entity. iii. In case the PM is set up as a subsidiary, the net worth requirement is to be met by the subsidiary itself. However, if the subsidiary does not meet the criteria, the net worth of the parent entity will be considered. iv. The PM/ parent entity shall fulfil the aforesaid net worth requirement, separately and independently for each activity undertaken by it u....