Markets regulator Sebi on Friday stated portfolio managers can make investments a most of 30% of shoppers’ belongings within the securities of their ‘associates‘ or associated events.

This got here after Sebi amended portfolio managers’ guidelines on Monday that mandated prudential limits on investments in associates and associated events of portfolio managers, the requirement of taking prior consent of shoppers for such investments and restrictions based mostly on the credit standing of securities.

The regulator outlined “affiliate” as a physique company by which a director or associate of the portfolio supervisor holds, both individually or collectively, greater than 20% of its paid-up fairness share capital or partnership curiosity.

In a round, the Sebi stated “portfolio managers shall make investments as much as a most of 30% of their consumer’s portfolio (as a proportion of the consumer’s belongings underneath administration) within the securities of their very own associates/associated events.”

With regard to funding in fairness, debt and hybrid securities, the regulator has fastened a restrict of 15% every for funding in a single affiliate or associated social gathering, whereas the identical has been set at 25% for funding throughout a number of associates or associated events.