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CS Executive · Capital Market and Securities Laws · Securities Market Intermediaries

Mehta Fiduciary Services wishes to act as a portfolio manager in India. Under the SEBI Act, 1992, which function of SEBI covers the registration and regulation of the working of portfolio managers?

SEBI may register and regulate the working of portfolio managers under Section 11(2)(b) of the SEBI Act, 1992. This is one of the measures SEBI may adopt to protect investors and regulate the securities market, alongside brokers, merchant bankers, underwriters and investment advisers.

  1. ARegistering and regulating the working of portfolio managers as one of the measures SEBI may take to protect investors and regulate the securities marketCorrect
  2. BPromoting investors' education only, with no power over intermediaries
  3. CRegulating only the business in stock exchanges and no other intermediaries
  4. DPerforming functions delegated by the Central Government under the Securities Contracts (Regulation) Act, 1956 only

Explanation

Section 11(2)(b) lists stock brokers, sub-brokers, share transfer agents, bankers to an issue, trustees of trust deeds, registrars to an issue, merchant bankers, underwriters, portfolio managers and investment advisers among the intermediaries SEBI may register and regulate. The other options wrongly confine SEBI's role to education, exchanges or delegated functions.

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