- 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.