SEBI/HO/IMD/RAC/CIR/P/2025/ 0000000138

rules · 1992 · State unknown

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Parent: THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 (7c4c1f5343adab106c3a94cafc08a5ecf5957ae7)

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CIRCULAR SEBI/HO/IMD/RAC/CIR/P/2025/ 0000000138 To All Portfolio Managers Association of Portfolio Managers in India (APMI) Madam / Sir , Sub: Transfer of portfolios of clients (PMS business) by Portfolio Managers As an initiative towards ease of doing business and for the purpose of simplification, it has been decided to allow transfer of PMS business . A Portfolio Manager shall transfer its PMS business only after obtaining prior approval from SEBI as per the following process: Transfer of PMS business from one portfolio manager to another, both holding portfolio manager registration and belonging to the same group: 3.1.Portfolio Managers shall have the option to transfer select Investment Approach(es) or complete PMS business to another Portfolio Manager within the same group , subject to the following conditions: 3.1.1. If the entire PMS business is transferred, the certificate of PMS registration of transferor shall be surrendered within a period of 45 working days from the date of completion of transfer . 3.1.2. In case of transfer of only select Investment Approach (es) , the transferor may continue to hold certificate of PMS registration. October 24, 2025 Transfer of PMS business from one portfolio manager to another portfolio manager not belonging to the same group: 4.1.A joint application by both the portfolio managers (transferor and transferee) shall be made to SEBI for approval of transfer of PMS business. 4.2.The transferor shall transfer complete PMS business. Transfer of select investment approach(es) of PMS business to transferee shall not be permitted. 4.3.The transferee shall fulfill all the regulatory requirements and once the transfer of PMS business is complete, the acts, deeds, pending actions/ litigations, other obligations against the transferor

Rule TOC

3 · 1.Portfolio Managers shall have the option to transfer select Investment Approach(es) or complete PMS business to another Portfolio Manager within the same group , subject to the following conditions:

3 · 1.1. If the entire PMS business is transferred, the certificate of PMS registration of transferor shall be surrendered within a period of 45 working days from the date of completion of transfer .

3 · 1.2. In case of transfer of only select Investment Approach (es) , the transferor may continue to hold certificate of PMS registration.

4 · 1.A joint application by both the portfolio managers (transferor and transferee) shall be made to SEBI for approval of transfer of PMS business.

4 · 2.The transferor shall transfer complete PMS business. Transfer of select investment approach(es) of PMS business to transferee shall not be permitted.

4 · 3.The transferee shall fulfill all the regulatory requirements and once the transfer of PMS business is complete, the acts, deeds, pending actions/ litigations, 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 as per AnnexureI , along with the joint application .

4 · 4.The entire process of transfer shall be completed as expeditiously as possible but not later than two months from the date of approval. Until the transfer process is complete, the transferor shall continue to act as Portfolio Manager but shall not onboard any new client(s) . At the end of two months or upon completion of all the formalities, whichever is earlier, the transferor shall surrender its registration certificate by following the surrender process. Format of undertaking to be furnished by the transferor in this regard is placed as Annexure-II . The undertaking shall accompany the joint application as mentioned in 4.1 above.