To make it easier for the foreign fund managers keen to relocate to India, markets regulator Sebi is considering allowing them to function as ‘Portfolio Managers’ under an easier regulatory regime.
To make it easier for the foreign fund managers keen to relocate to India, markets regulator Sebi is considering allowing them to function as ‘Portfolio Managers’ under an easier regulatory regime.
The move assumes significance in the wake of the government already having announced taxation incentives for the offshore fund managers willing to relocate to India.
A new section in the Income-Tax Act provides that the fund management activity carried out through an Eligible Fund Manager (EFM) located in India and acting on behalf of an Eli-gible Investment Fund (EIF) would not constitute business connection in India of such a fund.
Following the issuance of notification by the tax department in this reg-ard, the regulator held meetings with various stakeholders to discuss the registration framework for EFMs, during which several impediments were pointed out in the existing regulations for Investment Advisers and Portfolio Managers.
