Subscribe To Our Free Newsletter |
Sebi streamlines digital onboarding for portfolio managers’ clients
Capital markets regulator Sebi on Friday relaxed the digital onboarding process for clients of portfolio managers, a move aimed at facilitating ease of doing business.
While onboarding clients, portfolio managers will have to ensure that new clients use a typed or electronically written note saying that they have understood the fee structure rather than the current practice that focuses on clients giving the same in their own handwriting.
The change, aimed at making digital onboarding easier, would become effective from October 1, the Securities and Exchange Board of India (Sebi) said in a circular.
The move came after Sebi observed certain operational challenges in complying with the requirement of a handwritten note on the annexure of fees in the agreements, including the non-availability of a stylus at the location of the investors.
This requirement was creating a hindrance towards the complete digital onboarding of the clients.
"While on-boarding a client, portfolio manager sh