MUMBAI: : The Sebi board has decided to enhance the minimum net worth requirement for portfolio managers and enhance the minimum net worth requirement for registration as portfolio manager from the existing Rs 50 lakh to Rs 2 crore. It has been decided to give effect to the requirement of maintaining continuous net worth separately for portfolio management activities.

“Existing portfolio managers whose net worth is less than Rs 2 crore will have to increase it to at least Rs 1 crore in six months and thereafter to the prescribed net worth of Rs 2 crore in the next six months from the date of notification of amendment to the Sebi (portfolio managers) regulations, 1993,” the market regulator said. Sebi said that it was also decided that portfolio managers should not float a scheme or pool the resources of a client in a way similar to mutual fund (MF) activity. Accordingly, portfolio managers will not be permitted to float a scheme or pool client resources.

They will 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 for conversion of operations managed on a pooled basis to individual basis. Necessary amendments would be made to the regulations, Sebi said.