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

Okay, here's the policy analysis report based on the provided text, structured as requested, and focusing on it being an amendment to an existing policy. **Report: Analysis of the Securities and Exchange Board of India Portfolio Managers Amendment Regulations, 2021** **1. Executive Summary:** This report analyzes the Securities and Exchange Board of India (SEBI) Portfolio Managers Amendment Regulations, 2021, which amends the Securities and Exchange Board of India Portfolio Managers Regulations, 2020. The primary purpose of this amendment, as inferred from the text, is to update the professional qualification and certification requirements for individuals associated with portfolio managers, particularly regarding qualifications in finance, law, accountancy, business management, and NISM certifications. A key finding is the emphasis on continuous compliance with certification requirements, necessitating renewal before expiry. **2. Introduction:** This report provides an informative analysis of the Securities and Exchange Board of India (SEBI) Portfolio Managers Amendment Regulations, 2021, based solely on the information provided in the official gazette notification. The report outlines the key changes introduced by this amendment and their potential impact. **3. Policy Overview:** * This is an amendment to the Securities and Exchange Board of India Portfolio Managers Regulations, 2020. * **Core Objective(s):** The core objective of this amendment, as inferred from the text, is to refine the qualification and certification requirements for individuals associated with portfolio management. The amendment clarifies acceptable professional qualifications and emphasizes the need for continuous certification. **4. Background and Rationale:** The provided text suggests that the reason for this amendment is to clarify and potentially strengthen the requirements for individuals involved in portfolio management. The changes to regulation 7, subregulation 2, clause (d), point towards a need to standardize or enhance the quality and relevance of professional qualifications and certifications held by these individuals. The introduction of the proviso concerning NISM certification renewals indicates an effort to ensure continuous professional development and compliance within the industry. **5. Key Provisions / Changes:** This amendment focuses on changes to Regulation 7 of the Securities and Exchange Board of India Portfolio Managers Regulations, 2020, specifically related to the eligibility criteria for individuals associated with portfolio managers. * **Specific Part Changed:** Clause (d) of subregulation (2) of regulation 7. Also clause (e) of subregulation (2) of regulation 7. * **New Rule/Provision:** * **Subclause (i) change:** Subclause (i) related to professional qualifications is being substituted. The new subclause (i) explicitly lists acceptable professional qualifications, including: a professional qualification in finance, law, accountancy or business management from a university or an institution recognized by the Central Government or any State Government or a foreign university or a professional qualification by completing a Post Graduate Program in the Securities Market Portfolio Management from NISM of a duration not less than one year or a professional qualification by obtaining a CFA charter from the CFA institute. * **Subclause (iii) change:** The symbol . is substituted with the symbol : * **Proviso insertion:** A new proviso is added stating that a fresh NISM certification shall be obtained before expiry of the validity of the existing certification to ensure continuity in compliance with the certification requirements. * **Proviso (e) change:** "minimum qualifications and experience" is substituted with "minimum qualifications, experience and certification." * **Difference/Effect of the Change:** * The explicitly stated qualifications will provide clarity and standardization for what constitutes an acceptable professional background for those in portfolio management. * The new proviso concerning NISM certification renewals enforces continuous professional development and compliance by requiring individuals to maintain valid certifications. This prevents lapses in certification and ensures ongoing competence. * The addition of "certification" to the minimum requirements emphasizes the importance of certification in addition to qualifications and experience. **6. Target Audience and Stakeholders:** Based on the provided text, the primary target audience and stakeholders are: * Individuals seeking to qualify as portfolio managers or associated with portfolio management firms. * Portfolio management firms themselves, who must ensure their personnel meet the updated qualification and certification requirements. * The National Institute of Securities Markets (NISM), which provides relevant certifications. * Securities and Exchange Board of India (SEBI), who is the governing body for this amendment. **7. Implementation Aspects (Inferred):** * **Responsible Agency:** The Securities and Exchange Board of India (SEBI) is the responsible agency, as indicated by the notification. * **Timelines:** The amendment comes into force on the date of its publication in the Official Gazette (March 16, 2021). * **Certification Renewals:** Individuals holding NISM certifications must obtain fresh certifications before the expiry of their existing ones to maintain compliance. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of these changes are: * Enhanced professional standards within the portfolio management industry. * Increased confidence among investors due to more stringent qualification requirements. * Continuous professional development and up-to-date knowledge among portfolio managers through mandatory certification renewals. * Improved regulatory compliance within the industry. **9. Conclusion:** The Securities and Exchange Board of India Portfolio Managers Amendment Regulations, 2021 represents a refinement of the existing regulatory framework for portfolio managers. By clarifying acceptable professional qualifications and mandating continuous NISM certification renewals, the amendment aims to enhance professional standards, promote continuous learning, and ultimately strengthen investor confidence in the Indian securities market. The changes emphasize the importance of both initial qualifications and ongoing competence in the field of portfolio management.

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