MUTUAL FUNDS COLLECTIVE INVESTMENT SCHEME, PORTFOLIO MANAGEMENT REGULATIONS AN INTRODUCTION

1. MUTUAL FUNDS COLLECTIVE INVESTMENT SCHEME, PORTFOLIO MANAGEMENT REGULATIONS AN INTRODUCTION R K NAIR, EX- ED, SEBI

2. What is Mutual Fund? Pooling of Money Passed back to Generate Invest in

3. Various Investment Alternatives

4. Why Mutual Fund?

5. Positioning of Investments Hedge Funds, Private Equity, etc. Equity Equity Funds Return Structured Financial Products Bonds Debt Funds Fixed Deposits Risk

6. Structure of Mutual Funds in India SEBI Sponsor Investment Management Agreement Trust Deed AMC Custodian Trustee Investment & Advisory Services MutualFund RTA Scheme 2 Scheme1 Scheme 3 Scheme 4

7. Evolution of MF Industry in India PHASE III – 1993 -2002 1993 Private sector and foreign players allowed. Kothari Pioneer first private fund house to start operations; First set of SEBI (MF) regulations come in to force 1994 Morgan Stanley is the first foreign player 1996 Comprehensive set of SEBI’s mutual fund rules and regulations come into force 1999 The takeover of 20th Century AMC by Zurich Mutual Fund is the first acquisition in the mutual fund industry PHASE I – 1963-1986 1963- UTI is India’s first mutual fund 1964UTI launches US-64 1971UTI’s ULIP is second scheme to be launched 1986UTI Mastershare, India’s first true mutual fund scheme launched PHASE II – 1987-1992 1987PSU banks and insurers allowed to float mutual funds; SBI first off the blocks 1992SEBI set up to regulate industry PHASE IV – 2003 onwards Number of measures taken by SEBI to streamline and adopt the Best International Practices Big foreign names like JP Morgan, BlackRock, Mirae, Robeco, Nomura, BNP Paribas, AEGON, AXA, etc. established presence AUMs increased at a very high rate due to boom in the equity market and high corporate inflows to debt funds Tough competition amongst AMCs to increase Market Share Setting up of SRO for distributors of MF products Policy developments to increase penetration in Tier II and Tier III cities Greater emphasis on investor education and awareness Introduction of new products Long Term Policy

8. Overview of Functions • Greater Responsibility & Supervisory Role placed on the Trustees • Day to Day Management with the AMC • Periodical Reporting by the AMC to the Trustees • Periodical Reporting by the Trustees and AMC to SEBI • The responsibility of overall supervision, investor protection, market development, etc. is with SEBI

9. Types of Schemes

10. Overview as on Dec 30, 2015

11. Comparison – MF, PMS & AIF

12. US 64 • The Unit Scheme, 1964 (US-64) published on May 30, 1964, in the Gazette of India • The transactions used to start in July every year after the UTI declared the sale and repurchase prices of its units • Since 1992, from a debt oriented scheme, the US-64 slowly became an equity oriented scheme. Due to the market volatility and after the dreamy phase of the 1992 boom was over, the net asset value (NAV) of the US-64 units constantly went down and finally turned negative in 1998. • In September, 2002, The government issued an ordinance to restructure UTI which included repealing of the UTI Act and bifurcating the Trust into UTI-I and UTI-II. • UTI-I to comprise US-64 and other assured return schemes with a total asset base of around Rs 25,000 crore. All NAV-based schemes with a total asset base in excess of Rs 17,000 crore to go under the umbrella of UTI-II.

13. US 64 Cont… • UTI-I was renamed as a Specified Undertaking of the Unit Trust of India (SUUTI) and UTI-II was renamed as UTI MF. • In May 2003, Unit Trust of India (UTI) offered to buy back US-64 units at Rs 12 for those with holdings up to 5,000 units, and the remaining units at Rs 10. • Alternatively, investors had the option of taking 6.75% tax-free bonds in lieu of their investments. These were the bonds which matured on May 31, 2008. • US-64 bonds were not the only bonds that UTI issued. It also issued 6.6% tax-free bonds against the assured return schemes. These bonds matured on March 31, 2009. • On May 31, 2008, the five-year US-64 tax-free bonds, issued to investors when the scheme ran into trouble, come up for redemption. Around Rs. 8000 Crores worth of US-64 bonds were redeemed as on 31st May, 2008.

14. Evolution of Regulatory Framework for CIS • During the early nineties, many Plantation/Agro based companies collected huge amounts of money from Indian Public through various plans/ schemes. • GOI vide PR dated Nov 18, 1997 stated that issuance of the instruments such as agro bonds, plantation bonds, etc., would be treated as CIS activities under the purview of SEBI. • SEBI vide PR dated November 26, 1997 and December 18, 1997 directed all existing schemes to comply with the provisions of Section 12(1B) of the SEBI Act and file the details of their schemes with SEBI. • SEBI (Collective Investment Schemes) Regulations, 1999 were notified on October 15, 1999. • As on date only one CIMC is registered with SEBI (Gift Collective Investment Management Company Limited), but no scheme launched.

15. CIS – Definition Under Section 11AA(2) of the SEBI Act, 1992, CIS is: Any scheme or arrangement made or offered by any company under which: • Any contributions - pooled and utilized for the purpose of the scheme or arrangement; • With a view to receive profits, income, etc. - whether movable or immovable; • Contribution, investment - being managed on behalf of the investors; • Investors - do not have day-to-day control over the management and operation of the scheme. In terms of the Securities Law (Amendments) Act, 2014, any pooling of funds under any scheme or arrangement, which is not registered with the Board or is not covered under exemption categories specified under the Act, and is not regulated by any other authority or otherwise banned under any prevailing law in the country, involving a corpus amount of one hundred crore rupees or more shall be deemed to be a collective investment scheme.

16. CIS – Definition Cont…. As per Section 11AA(3) of the SEBI Act, 1992, the following scheme or arrangement shall not be a CIS:

17. Issues & Challenges related to CIS Regulations

18. CIS as a term • Generic Sense – Any scheme or plan where money is collected from people for investment purpose. • SEBI CIS sense - “Any scheme or arrangement made or offered by any person under which: • Any contributions - pooled and utilized for the scheme or arrangement; • With view to receive profits- whether movable or immovable; • Contribution managed on behalf of the investors; • Investors do not have day-to-day control” • International Scenario – CIS includes other money pooling vehicles. For example in Australia CIS includes MFs, REITs, Hedge funds

19. CIS - Internationally CIS Division

20. PGFL Order SC has directed that CIS is not restricted to any particular commercial activity such as in a shop or any other commercial establishment or even agricultural operation or transportation or shipping or entertainment industry. Implications – Any activity which fulfills the conditions of CIS and is not prohibited or regulated by any other law is a CIS activity

21. Category of SEBI CIS orders • Under the garb of real estate: Rose Valley Real Estate, Saradha Reality India Ltd., PACL etc • Under the garb of time Share: Rose Valley Hotels and Entertainment, Royal Twinkle, Pancard Club Ltd., Citrus Check Inns Limited etc • Potato Farming: Sumangal Industries • Goat Farming: Samrudha Jeevan, Prosperity Agro • Plantation : MPS Greenery, Golden Forest • Art Fund: Osian Art Fund, Arohan Trustee Pvt. Ltd, Yatra Art Fund

22. Chit / MLM / Ponzy • Prize Chit – Defined in PCMCSB Act, 1978 • Collection of money in lump sum or installments by operator and uses the money for investment or any other purpose • Distributing the proceeds to specified number of subscribers as determined by lot , draw or any other manner • Conventional Chit – Defined in Chit Fund Act, 1982 • A specific no. of persons subscribe a certain sum of money periodically for a definite period and each subscriber, in his turn, as determined by lot or auction , is entitled to prize amount • MLM /Pyramid marketing / Chain marketing • product is only a way to disguise intention • Compensation plans are designed to inevitably motivate the participants in the scheme to concentrate on recruiting more participants rather than on direct selling • Most of the sales occur only between people inside the pyramid structure

23. Chit / MLM / Ponzy contd. • Direct marketing – Most of the sales will occur to consumers among general public • Ponzy Scheme – Where the operator pays to its existing investors by collecting money from new investors – “ Robbing Peter to pay Paul” • Money Circulation Scheme – defined in PCMCSB Act, 1978 • Quick and Easy Money creation • Enrolment of members in the scheme • Judgment • Supreme Court Judgement in Kurian Chacko Vs State of Kerala (2008) • Example • Gold Quest International Private Limited – Selling Gold coins over priced 5-6 times, people purchased the products to become sales representative • Speak Asia offering return of 373 % in one year

24. Prize Chits and Money Circulations (Banning) Act, 1978 Central Act But administered by State Governments The act bans promotion or conduct of any prize chit or money circulation scheme and provides for imprisonment and penalty in case of failure to comply with the provisions The act bans any prize chit or money circulation scheme or enrolment or participation as members in those schemes or receiving or remitting money under those schemes MLM activities are understood to fall under the purview of State Govts. under this Act

25. Protection of Interest of Depositors Act Many States have their respective laws for protection of investors’ interest e.g. Madhya Pradesh Nikshepkon Ke Hiton Ka Sanrakshan Adhiniyam, 2000, Maharashtra Protection of Interest of Depositors Act, 1999 and the Himachal Pradesh [Protection of Interests of Depositors (In Financial Establishments)] Act, 1999 As per Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act, 1999, “Deposit” includes and shall be deemed always to have included any receipt of money or acceptance of any valuable commodity by any Financial Establishment to be returned after a specified period or otherwise, either in cash or in kind or in the form of interest, bonus, profit or in any other form, but does not include- Such as Advance received against goods or services (five category of exemptions). As on December 31, 2014, 22 States and Union Territories have enacted such acts.

26. PID Act Contd. State Governments have powers to attach property of such entities, dispose them off under the orders of special courts & distribute the proceeds to depositors. Invoking PID Act when money is being collected: As per Maharashtra PID Act, State may attach the properties "where the Government has reason to believe that any Financial Establishment is acting in a calculated manner detrimental to the interest of the depositors with the intention to defraud them“. Therefore, even at the time of collection of deposit the PID Act can be invoked provided that the money being collected falls within the ambit of deposit. Emu Farming- Actions taken by Tamil Nadu State Govt. under the Tamil Nadu Protection of Interest of Depositors Act.

27. Definition of Deposit • RBI Act, 1934 • As per section 45I(bb) of RBI Act 1934, ‘‘deposit’’ includes and shall be deemed always to have included any receipt of money by way of deposit or loan or in any other form, but does not include, (five category of exemptions) • Companies Act 2013 and the Acceptance of Deposit Rules , 2014 made there under • As per Sec 2 (31) of the Companies Act , “Deposit’ includes any receipt of money by way of deposit or loan or in any form by a company , but does not include such categories of amount as may be prescribed in consultation with RBI. (14 category of exemptions)

28. Issues in existing CIS Regulations • Listing Requirements • Mandatory for all Registered CIS • Compliance as per listing agreement of exchanges • Appraisal Norms • All assets to be appraised before starting Business Activities • Credit Rating Requirements • Need rating from CRA on a continuous basis for all Schemes • Compliance requirements leads to high costs of operations.

29. Challenges related to CIS “Pooling” is not defined under CIS Regulations or under SEBI Act Camouflaged schemes: Layering of Sale of goods/services (e.g. Selling of room nights ) Hybrid Schemes having elements of CIS , Money Circulation Scheme and Deposits leading to a gap regarding ownership of cases among regulatory agencies Coordination amongst Regulators/Agencies Complaints received after defaults No market intelligence system in place for early detection Enforcement of action: Prevention from further raising of money Refund of money raised Entity/promoters absconding after SEBI orders Entities / Directors not responding to SEBI letters/ Undelivered Letters SEBI Orders / Public Notices in Vernacular languages No action against Agents / Sub Agents of entities Public perception that SEBI is the sole Regulator for unauthorized money Mobilization leading to huge amount of vague complaints , complaints pertaining to other jurisdictions

30. Opportunities Huge Amounts of money can be channelized in the economy Large number of people can be brought into the system Can serve as an an effective tool of financial inclusion

31. Road ahead CIS Awareness Campaign • Aimed at generating awareness among public through print media, advertisement in various channel of radio/television. More targeted campaigns are required such as campaigns at places where huge congregation of people assembles, such as Trade fairs etc. Effective Coordination among regulators / Enforcement Agencies • The issue of ownership of case should be sorted out at preliminary stage after discussing with other regulators, Enforcement Agencies so that there should not be problems in enforcement of orders. State level co-ordination committees are formed for this purpose. Efficient Enforcement of SEBI orders • SEBI directions against unauthorised CIS activities needs to be efficiently enforced on such persons so as to create an effective deterrence for people to engage in such activities. Detection of early warning signals • SEBI along with the other Regulators / Enforcement agencies is in the process of developing early warning signals • Only one CIMC is registered with SEBI and no scheme has been launched till date . Suitable amendments should be made in the CIS Regulations to attract companies to register and carry out legitimate CIS activities. SEBI is in the process of reviewing the SEBI (CIS) regulation, 1999. Need for amendment of CIS Regulations to develop legitimate CIS activities

32. Case of M/s. Pearls Agrotech Corporation Ltd. (PACL) About the Matter The main allegation against PACL was that the plans/ schemes operated by it were in the nature of CIS and that PACL is offering these schemes without obtaining registration from SEBI. • PACL has 5.85 crore total customers. Details were not available. • The total amount mobilized comes to a whooping of ₹49,100 crore. • As on March 31, 2014, it had around 4.63 crore customers and an amount of ₹29,420.65 crore stands outstanding. • The value of total lands in the form of 'stock-in-trade' as on March 31, 2014 is ₹11,706.96 crores which comprises of two categories: i.e. agricultural lands (₹7,322.11 crores) and commercial lands (₹4,384.84 crores).

33. Chronology of Events – PACL Matter • It came to the knowledge of SEBI that PACL Limited was running CIS and had failed to submit the information/details of its schemes with SEBI in terms of the press release dated November 26, 1997 and the public notice dated December 18, 1997. • PACL in its first reply challenged the jurisdiction of SEBI, by stating that its transactions are in the nature of sale and purchase of agricultural land and thus outside the purview of the securities market. • In the year 1998 a PIL was filed before the Hon'ble Delhi High Court by one Mr. S.D. Bhattacharya against SEBI and Anrs. bringing into light, the activities of various agro-plantation companies who had duped the hard earned money of several investors and also filed an application for impleading 478 agro-plantation companies in the matter. • The Hon'ble Delhi High Court vide an order dated October 07, 1998, inter alia directed all plantation companies, agro companies and companies running CIS to comply with SEBI directives and also directed to issue notices to such companies through publication in the newspaper. PACL was also in the list of 478 companies. • PACL vide its application dated December 08, 1998, approached Hon'ble Delhi High court for deletion of its name from the list. • Hon'ble Delhi High Court vide order dated May 26, 1999, had directed SEBI to appoint auditors for ascertaining the genuineness of the transactions executed by PACL.

34. Chronology of Events – PACL Matter Cont….. • SEBI in its report dated February 22, 2000 submitted to Hon'ble Delhi Court, highlighting various deficiencies/ discrepancies such as the cost of the land was taken to be uniform irrespective of its location, huge commissions were being paid to agents by PACL out of the funds collected from the public, etc. • Latter on the Hon'ble High Court of Delhi appointed Justice K. Swamidurai (Retd.) to physically verify the genuineness of the agreement to sell and the transactions entered into and also to supervise the registrations of the sale deeds. • SEBI vide its various communications to PACL, had advised PACL to comply with the SEBI (CIS) Regulations. • PACL vide its letter dated December 13, 1999, replied to SEBI which inter alia stated thatSEBI has no jurisdiction to scrutinize its transactions. • PACL had also challenged SEBI letters before the Hon'ble High Court of Judicature for Rajasthan at Jaipur by filing a Writ Petition, in December 1999, claiming therein inter alia that its scheme does not fall under the definition of CIS and also challenged the constitutional validity of the CIS Regulations.

35. Chronology of Events – PACL Matter Cont….. • SEBI vide order dated June 24, 2002, held that the schemes floated by PACL fall squarely within the definition of CIS as defined under Section 11AA of the SEBI Act and advised PACL to comply with the provisions of the CIS Regulations subject to the directions of the Hon'ble High Court of Judicature for Rajasthan at Jaipur. • On September 20, 2002, Justice K. Swamidurai submitted his final report stating therein that the transactions entered into by PACL with its customers were genuine. • March 03, 2003, the Hon'ble High Court of Delhi modified its earlier orders in this matter and allowed PACL to execute the sale deed in favour of the customers duly verified by Justice K. Swamidurai. • SEBI filed an application for modification/ clarification of such order of Hon'ble High Court of Delhi. The Hon'ble High Court of Delhi vide order dated May 30, 2003 inter alia clarified thatneither this Court held PACL India Limited to be a CIS company nor it was held that it is not a CIS company. This would be for SEBI to decide and our order discharging notice would not stand in the way of SEBI to so decide.

36. Chronology of Events – PACL Matter Cont….. • Subsequently, the Hon'ble High Court of Judicature for Rajasthan at Jaipur vide its order dated November 28, 2003 inter alia held that the schemes of PACL were not CIS as they did not possess the characteristics of a CIS as defined under Section 11AA of the SEBI Actand quashed the letters issued to PACL by SEBI. • SEBI preferred an appeal before the Hon'ble Supreme Court of India against the order of Hon'ble High Court. The Hon'ble Supreme Court of India vide order dated February 26, 2013, set aside the order of Hon'ble High Court and ordered that the proceedings dated November 30, 1999 and December 10, 1999 can themselves be treated as show cause notices apart from permitting the appellant to issue a comprehensive supplementary show cause notice to the first respondent Company within a period of three months after carrying out necessary inspection, investigation, inquiry and verification of the accounts and other records of the first respondent Company. • After completion of its investigation, SEBI issued an SCN dated June 14, 2013 to PACL Limited and its directors namely Mr. Anand Gurwant Singh, Mr. Gurnam Singh, Mr. Tarlochan Singh, Mr. Sukhdev Singh, Mr. Nirmal Singh Bhangoo, Mr. Gurnam Singh, Mr. Uppal Devinder Kumar, Mr. Tyger Joginder, Mr. Gurmeet Singh and Mr. Subrata Bhattacharya.

37. Chronology of Events – PACL Matter Cont….. • On sample verification of the documents of few customers, the following documents are observed: • Application Form • Pre-printed Agreement • Registration Letter • Letter of Allotment of Plots • Receipt • Special Power of Attorney, etc. • Two plans were offered • Cash Down Payment Plan (CDPP) • Instalment Payment Plan (IPP)

38. Chronology of Events – PACL Matter Cont….. Observations • In certain cases, in the application form at the place of plan, FD/ RD is written, which gives an impression that the scheme operated by PACL were nothing but money mobilization schemes. • PACL invites investment in terms of its rule book, under which one of the aims of PACL is to offer maximum return on investment and benefits to the customers. • At the time of application, PACL had not disclosed the location of the land/ land availability. This indicated that PACL pools the money from the customers for the purchase of the land. • The registration letter states the expected value of the land, although the land is not allotted even at such stage and the location of the plot/ land remains undisclosed. • As per the agreement, PACL reserves the right to change the location of the land even after allotment. • PACL also admitted that there was only symbolic possession of the plots handed over to the customer, as the fragmentation of land/ plot into smaller sizes may not be practical or permissible under the applicable revenue laws.

39. Chronology of Events – PACL Matter Cont….. Observations Cont.. • The right of maintenance, development and sale of produce are retained by PACL. The customer gets no right to claim for any produce out of the plot/ land for first six years of the agreement. • As per the agreement, opting out facility was only available under CDPP, subject to deduction of 20% of the consideration paid. However, the facility of opting out was also provided under IPP and the amount repaid was almost exact amount of the expected value without any deduction. This showed that PACL seems to be eager in seeing a customer opting out and also appears that the repaid amount also includes some portion of interest also. • The land allotted are located at places which are far off from the places where the customers are generally residing. • Special Power of Attorney was taken from all customers and where sale deeds would be executed the same would be kept with the custodial services company of PACL. • The rights in the land allotted are said to have been assigned by the customers to the prospective vendees, however, in the absence of any sale deeds, the fact remains that the customer gets neither the possession, nor the legal rights in the land to transfer the same to prospective vendee.

40. Chronology of Events – PACL Matter Cont….. Observations Cont… • Not a single applicant out of the 500 samples selected had registered a sale deed of the land. • As per the admission by PACL, it had executed only 19,284 sale deeds (0.005%). • In case of those executed sale deeds there were lots of discrepancies. The sale deed has not mentioned how the customers will access/ use such un-partitioned agricultural land. • Huge pre-paid commission paid to agents. • The % of direct holding of land by PACL is very negligible. • PACL had made arrangements to purchase the land through its 250 associate companies, in order to circumvent the applicable laws of land ceilings.

41. Chronology of Events – PACL Matter Cont….. Any schemes in order to be called a CIS, has to satisfy the four conditions mentioned in Section 11AA(2) of the SEBI Act. • First Condition: PACL collects the money from customers/ investors against the purported sale of a plot/ land. PACL pools in the money of customers for the purposes of the scheme i.e., for procuring the land. • Second Condition: The mere promise of expected value higher than amount invested makes it clear that contributions are made with a view of earning profits. • Third Condition: The customer who invest their money with PACL are mandatorily required to give the right of development and maintenance in favour of PACL. The investor gets only an undivided interest in the stock of land and the same cannot be identified. The customer does not manage his investments in the scheme rather his investments are managed and utilized by PACL. • Fourth Condition: PACL obtains the authority from its customers for development and maintenance of the plots of land. The customer does not have any claim over the common facilities provided by PACL, such as, irrigation pipelines, drainage systems and electrical lines etc. even after the execution of sale deeds.

42. Chronology of Events – PACL Matter Cont….. Liability of Directors • All directors are liable and responsible for the violations committed by PACL in running CISs without obtaining registration from SEBI as required under law. Directions: • PACL Limited, its promoters and directors including Mr. Tarlochan Singh, Mr. Sukhdev Singh, Mr. Gurmeet Singh and Mr. Subrata Bhattacharya, • Shall abstain from collecting any money from investors or launch or carry out any Collective Investment Schemes. • Shall wind up all the existing Collective Investment Schemes of PACL Limited and refund the monies collected by the said company under its schemes with returns which are due to its investors as per the terms of offer. • are also directed to immediately submit the complete and detailed inventory of the assets owned by PACL Limited. • shall not alienate or dispose off or sell any of the assets of PACL Limited except for the purpose of making refunds to its investors as directed above. • Advise SEBI to initiate appropriate proceedings under the SEBI Act and applicable Regulations against PACL Limited, its promoters and directors, including Mr. Tarlochan Singh, Mr. Sukhdev Singh, Mr. Gurmeet Singh, Mr. Subrata Bhattacharya, Mr. Nirmal Singh Bhangoo, Mr. Tyger Joginder, Mr. Gurnam Singh, Mr. Anand Gurwant Singh and Mr. Uppal Devinder Kumar.

43. Portfolio Management Services (PMS) IMD-DoF-1

44. Overview • Portfolio Managers in India are required to register under the SEBI (Portfolio Managers) regulations, 1993 • As on Dec 31 2015, there are 221 Portfolio Managers registered with SEBI. • Investors are required to invest at least Rs. 25 lakhs to avail Portfolio Management Services.

45. Type of services provided • Portfolio Managers provide one or more of the following services: • Discretionary PMS - where the Portfolio Manager takes all the decisions on investments of the client. • Non-discretionary PMS - where investor takes the final decision based on Portfolio Manager’s advice and Portfolio Manager executes the same. • Advisory PMS - where the Portfolio Manager provides only advice to the clients and the decision of investing as well as execution lies with the client.

46. AUM (In Rs Crores, as on Dec 31, 2015)

47. Top 5 Portfolio Managers handling EPFO/PF funds

48. Top 10 Portfolio Managers(as per AUM)

49. Major policy developments in recent past • Minimum net worth requirement for Portfolio Manager increased from Rs 50 lacs to Rs 2 crore excluding minimum Capital Adequacy/ Net worth requirement for any other activity (2008) • Requirement of segregation of listed securities in individual client accounts. (2008) • Performance fees, if charged, shall be mandatorily on the basis of high-water mark principle. (2010) • Portfolio managers to accept first single lump-sum investment amount, as funds or securities from clients, of atleast Rs 5 lacs. (2010) • Disclosure Document to be placed on the website of Portfolio Manager to ensure that the clients have updated information. (2010)

50. Major developments in recent past 6) Portfolio managers to keep the funds of all clients in a separate bank account maintained by the portfolio manager. 7) Portfolio Managers not to organize investment portfolios as "Schemes‟ akin to Mutual Fund Schemes while marketing their services to clients. (2010) • Minimum investment per client increased from Rs 5 lacs to Rs 25 lacs. (2012) • Segregation of unlisted securities in individual client accounts. (2012) • Portfolio managers are required to submit a monthly report as per the prescribed format containing details such as no. of investors, AUM managed, performance etc. to SEBI only.  Pursuant to CIC order dated January 17, 2013 SEBI has started putting these monthly reports on the SEBI website.