SEBI Proposes Easier Norms For Domestic Mutual Fund Managers

MUMBAI: India's market regulator SEBI may soon allow local mutual fund managers to manage offshore pooled assets. The regulator on Monday proposed to remove certain restrictions in the existing rules to facilitate domestic fund managers to tap foreign money. At present, for managing an offshore fund, the asset management company has to appoint the same fund manager who is managing domestic fund.

At least 70per cent of the portfolio of both the domestic scheme and offshore fund should be the same and the offshore fund has to be broad-based — with at least 20 investors and no single investor accounting for more than 25per cent of the corpus of the fund.

"Keeping in view the challenges faced by local fund managers in managing offshore pooled assets and the introduction of FPI  regulations which have rationalized the investment routes and monitoring of foreign portfolio investments and also streamlined categories of foreign investors, it is proposed that the requirements laid out in regulation 24b of SEBI MF Regulations may not be applicable to funds managed or advised by local fund managers." SEBI said in a discussion paper seeking public comments before February 2.

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