SEBI allows managers to keep funds of all clients in one account

SEBI on 23rd June, 2009 has issued two important clarifications. They are summarized below: -

Maintenance of Clients’ Funds in a separate Bank Account by Portfolio Managers
SEBI has clarified that portfolio managers may keep the funds of all clients in a separate bank account maintained by the portfolio manager subject to some conditions. These conditions include clear segregation of each client’s fund through proper and clear maintenance of back office records, maintaining an accounting system containing separate client-wise data etc. It is also specified that Portfolio Managers should not use the funds of one client for another client.

A copy of the Circular is available here.

Applicability of SEBI Regulations/ Circulars on Initial and Continuous Disclosures for Convertible and Non-Convertible Debt
Earlier in May 2009, SEBI had introduced a simplified listing agreement for issue of privately placed debt securities and listing of such securities on the exchange. This has created some confusion regarding the applicability of disclosure norms for issue and listing of convertible debt securities.

SEBI has clarified that issue of debt securities that are convertible, either partially or fully or optionally into listed or unlisted equity shall be guided by the disclosure norms applicable to equity or other instruments offered on conversion in terms of the Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000. Issue and listing of non-convertible debt securities, whether issued to the public or privately placed, is to be done in accordance with the provisions of the Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008.

A copy of the Circular is available here.