Obligation and Responsibilities of Eligible Fund Managers

(1) An eligible fund manager shall be required to – (a) comply with the requirements specified under section 9(12) of the Income–tax Act, 2025 (30 of 2025) or any amendment, notification, clarification, guideline issued thereunder; (b) offer discretionary or non–discretionary or advisory services or a combination thereof to eligible investment funds; (c) operate in accordance with mutually agreed contract with the eligible investment funds; (d) provide all material disclosures to eligible investment funds; (e) segregate funds and securities of each eligible investment fund; (f) segregate the funds and securities of eli gible investment funds from those of its other clients; (g) maintain and segregate its books and accounts pertaining to its activities as a portfolio manager to eligible investment funds and other clients; (h) appoint a custodian for making investment in India; (i) the requirement of compliance with sub–clause (h), shall not apply in case an eligible investment fund has already appointed a custodian under the applicable act or regulations; (j) keep the funds of eligible investment funds in scheduled commercial banks; (k) the requirement of compliance with sub–clause (j), shall not apply in case an eligible investment fund does not intend to invest in Indian securities; (l) adhere to the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019 for making investment in Indian securities; (m) charge fees on mutually agreed terms; (n) maintain any additional records as may be specified by the Board and disclose the same to the Board as and when required; (o) provide monthly reports in the format specified by the Board; (p) ensure compliance with the Prevention of Money Laundering Act, 2002 and rules and regulations made thereunder; (q) abide by the provisions in these regulations and circulars / guidelines issued by the Board from time to time.