1. Portfolio manager

۱- Definition

According to Securities Market Act, under paragraph 17of article 1; Portfolio Manager

means a legal entity that, under a specific contract, engages in buying and selling

securities for investors so as to gain profit. This meaning is somehow more concise than

what is called asset manager, it should be important to know that portfolio manager is

only active in securities market and go through financial assets not the whole types of

real assets .The Portfolio Manager’s area of business activity include making decisions to

sell, buy or hold securities on behalf of a defined investors in the form of predefined

agreement, to make profit for that investor;

۲-  Purposes

According to the Regulations Governing the Establishment and Activity of the portfolio

manager and the sample of article, the portfolio manager shall be entitled to engage in

any of the following activities provided that it is granted a license/permit by the

Securities and Exchange Organization (the SEO) for any of its areas of activity:

       a) Upon receipt of the license for portfolio manager services, the company shall,

as per rules, be entitled to:

a-1- making decision to sell, buy, or hold securities for an identified

investor by portfolio manager in the form of specified agreement, to gain

profit for the investor;

a-2- accept to be a body in mutual fund;

a-3- other activities which a portfolio manager can operate according to

SEO’s rules and regulations;

     b) Upon receipt of the license for investment advisor, the company shall be

entitled to carry out the activities specified in the relevant rules.

     c) Upon receipt of the license for financial data processing, the company shall be

entitled to carry out the activities specified in the relevant rules;

     d) Upon receipt of the license for offering or listing advisory services, the

company shall be entitled to carry out the activities specified in the relevant rules;

     e) The company shall, in line with the activities listed in this article and within the

context of the regulations of the present articles of association, be authorized to

receive loans (facilities) or acquire assets or make investments or establish an

independent legal entity or participate in the founding of other legal entities or

open banking letters of credit to engage in imports and exports of goods and

accomplish the relevant customs formalities. Such actions shall only be authorized

when they are essential to be carried out in line with the company’s areas of

activity and are not prohibited by law.

     f) The Company shall be allowed to invest in securities with regard to the limits

set by the SEO.