Securities And Exchange Board Of India - Subsection
Section 16(3) in Securities and Exchange Board of India (Portfolio Managers) Regulations, 1993
(3)The portfolio manager shall invest funds of his clients in money market instruments [or derivatives] [Inserted by the SEBI (Portfolio Managers) (Amendment) Regulations, 2002, w.e.f. 11-10-2002.] or as specified in the contract:[Provided that leveraging of portfolio shall not be permitted in respect of investment in derivatives:] [Inserted by the SEBI (Portfolio Managers) (Amendment) Regulations, 2002, w.e.f. 11-10-2002.]Provided [further] [Inserted by the SEBI (Portfolio Managers) (Amendment) Regulations, 2002, w.e.f. 11-10-2002.] that the portfolio manager shall not deploy the clients' funds in bill discounting, badla financing or for the purpose of lending or placement with corporate or non-corporate bodies.Explanation. - For the purposes of this sub-regulation: "money market instruments" includes commercial paper, trade bill, treasury bills, certificate of deposit and usance bills.
