Analysis: SEBI (Portfolio Managers) (Third Amendment) Regulations, 2021

Sr. No.

Amendment

Effect

1

Insertion: after Regulation 2(1)(a)

(aa) 'accreditation agency' shall have the same meaning as assigned to it in clause (aa) of sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012;

(ab) 'accredited investor' means any person who fulfils the eligibility criteria as specified by the Board and is granted a certificate of accreditation by an accreditation agency.

The definition of accreditation agency and accredited investor is added by the Board.

2

Insertion: after Regulation 2(1)(l)

(la) 'large value accredited investor' means an accredited investor who has entered into an agreement with the portfolio manager for a minimum investment amount of ten crore rupees.

The definition of large value accredited investor is added by the Board.

3

Substitution: Regulation 22(1)

the symbol '.' shall be substituted with the symbol ':'.

-

4

Insertion: Regulation 22(1) proviso

Provided that the contents of agreement specified under Schedule IV of these regulations shall not apply to the agreement between the portfolio managers and the large value accredited investors.

This proviso is added to exempt the requirement of Schedule IV in cases where agreement is entered between the portfolio managers and the large value accredited investors.

5

Insertion: after first proviso of Regulation 23(2)

Provided further that subject to appropriate disclosures in the disclosure document and the terms agreed between the client and the portfolio manager, the requirement of minimum investment amount per client shall not apply to an accredited investor:

This proviso is added to exempt the requirement of minimum investment amount per client in case of accredited investor where appropriate disclosure is made.

6

Insertion: after Regulation 24(4)

(4A) The portfolio manager may offer discretionary or non-discretionary or advisory services for investment up to hundred percent of the assets under management of the large value accredited investors in unlisted securities, subject to appropriate disclosures in the disclosure document and the terms agreed between the client and the portfolio manager.

This sub-section allows a portfolio manager to offer discretionary or non-discretionary or advisory services for investment up to 100% of the assets under management of the large value accredited investors in unlisted securities.