While considering the application for registration made in the prescribed form, the SEBI takes into account all matters relevant to the activities related to the portfolio manager. It has to consider the following important matters:
(1) Necessary infrastructure like adequate office staff, equipment and manpower to discharge the day to day activities.
(2) To employ minimum two persons with experience to conduct portfolio management business.
(3) Any person who is directly or indirectly connected with the applicant has not been granted registration.
(4) The capital adequacy is not less than a net worth of Rs. 2 Crores in terms of capital plus free reserves.
(5) The applicant or his partner or director or principal officer is not involved in any litigation connected with the securities market.
(6) The applicant has professional qualification in finance or low or accounting and business management.
(7) The grant of certificate is in the interest of the investors.
41 Comments