New Delhi: Sebi Wednesday allowed portfolio manager schemes (PMS) to invest in exchange traded commodity derivatives (ETCDs) on behalf of their clients with an aim to deepen the participation in the segment. The move comes after the regulator Tuesday permitted mutual funds to participate in the same segment. The participation of portfolio managers however is subject to certain conditions, Sebi said.
“Portfolio managers may participate in ETCDs on behalf of their clients and such participation shall be in compliance with all rules, regulations including Sebi (Portfolio Managers) regulations, 1993 and circulars/guidelines and position limit norms as may be applicable to clients, issued by Sebi and exchanges from time to time,” the regulator said in a circular.
Further, portfolio managers may participate in ETCDs after entering into an agreement with the client. For existing clients, portfolio managers may execute addendums to the agreement, permitting them to participate in ETCDs on their behalf.