SEBI clears 'pool' of confusion in PMS

SEBI had come out with an amendment in the PMS regulations which stated that the clients' listed securities should not be held by the Portfolio Manager in his own account - without any reference to the funds of the client. It was only when a broker, through an Informal Guidance sought clarity on the funds part, that SEBI has clarified that the bank accounts also need to be separate. This has cleared the air on the pool aspect of Portfolio Management Schemes, which was a common practice in the markets till recently. SEBI has also come out rather strongly on Portfolio Managers who do not comply with the segregation of demat accounts, by disallowing any fresh business..