Sebi comes out with simplified disclosure document format for portfolio managers

The new Delhi appeared with a simplified format for the description documents for the portfolio managers on Tuesday to facilitate the ease of doing business on September 9 (PTI).

‘Explanation Certificate’ India has been divided into two sections in the Circular of India Stock Exchange Board (SEBI) – static and dynamic -.

The dynamic section contains frequently changing content, while the static part often contains non -changing explanations.

Under the static section, portfolio managers are required to explain the provisions of waiver, definitions, definitions, penalties, case or trial, any regulatory authority, services, risk factors, portfolic policies, investment policies, investment policies, investment policies, investment policies.

In the dynamic section, portfolio managers should explain customer representation, financial performance, performance, audit observations of the previous three years and details of the investments in the securities of the relevant parties.

The explanation certificate is given by each portfolio manager as a summary of the basic information that enables investors to make well informed investment decisions.

Although this does not cause any changes in the content of the explanation document, it will provide operational convenience to portfolio managers, because only the updated section of the description document will need to be distributed to clients. In addition, it will provide ease of understanding for investors to determine the material changes that are clearly emphasized in communication.

Portfolio Management Services providers should ensure that each parameter of the ‘Explanation Certificate’ starts on a new page. The page, which contains only a change in any parameter, must be approved by an independent sworn financial advisor and the director of the PMS. Sebi said the same thing will be emphasized in communication with customers.

The updated description document pages will be transmitted to customers at the same time, updated on the website of the portfolio manager and filed with sebı within seven working days from the date of change.

Last week, Sebı changed the rules of portfolio managers to simplify the form of the description documents.