Portfolio manager to obtain prior approval of SEBI in case of change in control as condition of registration

Portfolio manager to obtain prior approval of SEBI in case of change in control. SEBI amends conditions for registration of portfolio managers

SECURITIES AND EXCHANGE BOARD OF INDIA

NOTIFICATION

Mumbai, the 26th April, 2021

SECURITIES AND EXCHANGE BOARD OF INDIA (PORTFOLIO MANAGERS) (SECOND AMENDMENT) REGULATIONS, 2021

No. SEBI/LAD-NRO/GN/2021/16.—In exercise of the powers conferred by sub-section (1) of Section 30 read with sub-section (1) of section 11, clause (b) of sub-section (2) of Section 11 and sub-section (1) of Section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Securities and Exchange Board of India hereby makes the following regulations to further amend the Securities and Exchange Board of India (Portfolio Managers) Regulations, 2020, namely:–

1.These Regulations may be called the Securities and Exchange Board of India (Portfolio Managers) (Second Amendment) Regulations, 2021.

2. They shall come into force on the date of their publication in the Official Gazette.

3. In the Securities and Exchange Board of India (Portfolio Managers) Regulations, 2020,-

I In regulation 11 after clause (a) and before clause (b) the following clause shall be inserted, namely,-

“(aa) the portfolio manager shall obtain prior approval of the Board in case of change in control in such manner as may be specified by the Board”

AJAY TYAGI, Chairman

[ADVT.-III/4/Exty./47/2021-22]

Footnote: 1.The Securities and Exchange Board of India (Portfolio Managers) Regulations, 2020, were published in the Gazette of India on January 16, 2020 vide No. SEBI/LAD-NRO/GN/2020/03.

2. The Securities and Exchange Board of India (Portfolio Managers) Regulations, 2020 were subsequently amended on, –

a. 17th April, 2020 by the Securities and Exchange Board of India (Regulatory Sandbox) (Amendment) Regulations, 2020 vide No. SEBI/LAD-NRO/GN/2020/10.

b. 16th March, 2021 by the Securities and Exchange Board of India (Portfolio Managers) (Amendment) Regulations, 2021 vide No. SEBI/LAD-NRO/GN/2021/10.

• Assessment itself is not a process to penalise assessee for earning undisclosed income – High Court
• Actual use of asset is not the sole test for allowability of depreciation – ITAT
• Object of assessment proceedings is not to find empirically correct solution on every fact issue – HC
• Penalty u/s 270A deleted as assessee filed revised computation during scrutiny
• Penalty u/s 271B for unfilled column 40 in Tax Audit Report Form 3CD deleted by ITAT