Mumbai, May 13 (UNI) Securities and Exchange Board of India (SEBI) today provided in principle approval to the concept of marking lien on bank account as an alternative mode of payment in public/rights issues.
SEBI Board, which met here today approved the concept, which would enable the application money to remain in the bank account of the applicant till the time allotment is finalised, and thus eliminate the refund process.
The modalities for such a lien would be worked out separately, SEBI said in a release.
The Board also decided to enhance the minimum networth requirement for registration as a portfolio manager from the existing Rs 50 lakh to Rs two crore and to give effect to the requirement of maintaining continuous networth separately for portfolio management activities.
The existing portfolio managers, whose networth was less than Rs two crore would have to increase it to at least Rs one crore within a period of six months and thereafter to the prescribed networth of Rs two crore in the next six months from the date of notification of amendment to the SEBI (Portfolio Managers) Regulations, 1993.
It was also decided that portfolio managers should not float a scheme or pool the resources of the client in a way which was akin to mutual fund activity. Accordingly, portfolio managers would not be permitted to float a scheme or pool the resources of the clients.
They would be required to keep assets of each client separately and not in a pooled manner. A time frame of six months from the date of notification has been given to convert their operations managed on pooled basis to individual basis. The necessary amendments would be made to the regulations, the release said.
In its meeting held on January 30, 2008, the Board had approved the draft SEBI (Issue and Listing of Debt Securities) Regulations, 2008.
After taking into consideration public comments received, the Board today approved certain amendments to the draft regulations. The final notification would be issued in due course.
UNI VK RN VKG1922