Sebi proposes easier rules for fund managers relocating to India
The move assumes significance in the wake of the government already having announced taxation incentives for the offshore fund managers willing to relocate to India. At a meeting here today, Sebi’s board approved issuance of a consultation paper for ‘amendments to the Sebi (Portfolio Managers) Regulations, 1993’, which would make it easier for the overseas funds to relocate to Indian shores.
The proposed amendments include a separate section on ‘Eligible Fund Managers’ that would specify conditions that will apply to their activities as portfolio managers. The new rules would also specify the procedure to be followed by a Sebi-registered Portfolio Manager to function as an Eligible Fund Manager. Besides, Sebi would lay out the procedure for registration of an existing foreign based fund manager desirous of relocating to India or a fresh applicant to function as an Eligible Fund Manager.
While listing out the obligations and responsibilities of Eligible Fund Managers, Sebi would specify non-applicability of certain provisions of Portfolio Managers Regulations on Eligible Fund Managers. These provisions would include ‘High Water Mark Principle’ regarding calculation of fees, disclosure of fees, obligation to act in a fiduciary capacity and audit of overseas fund.