Kolkata: Securities and Exchange Board of India is in the process of examining whether registered portfolio managers invest in instruments other than listed
securities, an official of the agency said.
"We are looking at other instruments like exchange traded
derivatives for investments by portfolio managers," SEBI
executive director R K Nair said.
The regulator has laid down various norms for portfolio
managers to protect investor`s interest.
SEBI is looking at other structured products besides
listed securities, Nair said at a seminar on Portfolio
Management Services organised by Indian Chamber of Commerce
At present, there are 247 portfolio managers registered
with SEBI and total assets under management by these entities
stand at Rs 2.72 lakh crore.
SEBI, he added, is also trying to usher in more reforms
in the primary and secondary markets to make the capital
markets more fair, transparent and inclusive.
To prevent any scandal taking place in the realm of
portfolio management, Nair said, SEBI had asked portfolio
managers to de-pool their accounts of listed securities from
those of their clients. The regulator has also asked them to
maintain capital adequacy ratio.
In this context, he said the net worth of the portfolio
managers should be at around Rs 2 crore.
Touching upon the aspect of investor eduction he said,
SEBI would reach out to school teachers for training in basic
financial literacy. These teachers, in turn, would train their
students on the various issues relating to preliminary
The grievance redressal system is also being streamlined
in the interest of investor protection, he added.