The capital markets regulator Securities and Exchange Board of India (Sebi) has issued a new master circular for portfolio managers. The latest circular now supersedes the earlier one dated June 7, 2024.
The latest master circular dated July 16, 2025 lists out a number of do’s and dont’s for portfolio managers. Among a myriad of diktats, one pertinent thing which has been highlighted revolves around the social media.
Amid a growing menace of social media channels soliciting funds from the subscribers and followers, Sebi – via this master circular – has cautioned the portfolio managers and told them to stay vigilant and monitor social media channels regularly in order to identify the persons or groups which claim to be registered portfolio managers or else, misuse the names of concerned portfolio managers to tempt the investors for making an investment.
“Based on this continuous monitoring of such entities, concerned Portfolio Manager should promptly take appropriate actions including issuing a press release / public notice, filing FIR etc. to ensure that such entities / groups are prevented from misusing names of such Portfolio Manager,” reads the circular.
Menace of social media
Sebi mentioned in the master circular that it has been brought to its notice that there are some persons who impersonate as Sebi registered portfolio managers on Telegram, WhatsApp groups or Instagram groups, thereby misleading the investors to defraud them.
These persons may be soliciting funds from the investors and claiming to provide investment advisory services by claiming to be registered portfolio managers.
Clients’ funds
The master circular also mentions that the portfolio manager will segregate each client’s funds and portfolio of securities and keep them separately from his own funds and securities and be responsible for safekeeping of clients’ funds.
It is further clarified that portfolio managers may keep the funds of all clients in a separate bank account maintained by the portfolio managers subject to the following conditions. I. There shall be a clear segregation of each client’s fund through proper and clear maintenance of back office records. II. Portfolio Managers shall not use the funds of one client for another client.
III. There will be an accounting system containing separate client-wise data and give a statement to clients for such accounts on a monthly basis. IV. Portfolio managers will reconcile the client-wise funds with the funds in the bank account on a daily basis.
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