PMS transfer between managers gets Sebi approval

The Securities and Exchange Board of India (Sebi) has allowed the transfer of portfolio management services (PMS) business by one portfolio manager to another, after taking regulatory approval.

The regulator said portfolio managers would have the option to transfer select investment approaches or complete PMS business to another portfolio manager within the same group.

If the entire PMS business is transferred, then the certificate of PMS registration of the transferor should be surrendered within 45 days from the date of completion of the transfer, Sebi said in a circular.


In the case of transfer between portfolio managers not belonging to the same group, a joint application by both managers would have to be made to Sebi.

The transferor would also have to transfer the entire PMS business and not just select investment approaches.

"The transferee shall fulfill all the regulatory requirements, and once the transfer of PMS business is complete, the acts, deeds, pending actions and litigations, and other obligations against the transferor, if any, shall be the responsibility of the transferee. An undertaking in this regard has to be submitted by the transferee..." Sebi said.