The Hindu Business Line : Portfolio managers to pay Rs 25,000 as registration fee

A PORTFOLIO manager seeking grant of certificate of registration from the capital market regulator would now be required to fork out Rs 25,000 as a non-refundable application fee to the Securities and Exchange Board of India (SEBI).

The capital market regulator has carried out amendments to this effect in its regulations on portfolio managers.

Hitherto, the SEBI had not stipulated payment of any application fee along with the application for grant of certificate of registration.

A body corporate status is now mandatory for obtaining certificate of registration as a portfolio manager from SEBI.

There is, however, no change to the norm, which requires every portfolio manager to pay a sum of Rs 5 lakh (registration fees) at the time of the grant of certificate by the board.

Portfolio managers are already allowed to invest clients' funds in equity shares, money market instruments and even in derivatives.

The derivatives window was opened for portfolio managers in October 2002. SEBI has, however, ruled that "leveraging of portfolio" would not be permitted in respect of investment in derivatives.

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