Markets watchdog Sebi on Monday eased compliance requirement for portfolio managers amid prevailing business conditions amid coronavirus pandemic. The decision was taken after receiving requests from portfolio managers and considering the prevailing business and market conditions due to the pandemic.
In a circular, Securities and Exchange Board of India (Sebi) said it has extended the timeline for compliance with the requirements of portfolio managers guideline regarding upfront fee, among others, by further three months till October 1, 2020.
Earlier in March, the regulator had extended the timeline by two months.
These guidelines were scheduled to become effective from May 1.
In February, Sebi had issued guidelines for portfolio managers and said they cannot charge upfront fee from clients.
According to the regulator, brokerage at actuals should be charged to clients as expense.In addition, Sebi put in place regulatory framework for portfolio managers with regard to direct on-boarding of clients by portfolio managers, periodic reporting information about investment approach, reporting of performance, disclosure and supervision of distributors.