Market regulator Sebi has allowed fund managers to manage both domestic and overseas money across all their activities, including mutual funds, offshore and portfolio management service.

Last year, the regulator, while allowing asset management companies to share back-end resources, had said they should appoint separate fund managers for each separate fund they manage unless the investment objectives and asset allocations were the same and the portfolio was replicated across all the funds managed by the fund manager.

"It has been represented to Sebi that the perfect replication of portfolio between the mutual fund scheme and products under other permissible activities of Asset Management Company (AMC) may not be achieved at all times," the regulator said in a circular on Tuesday.

"..it has been decided that the replication of minimum 70% of portfolio value shall be considered as adequate for the purpose of said compliance, provided that AMC has in place a written policy for trade allocation and it ensures at all points of time that the fund manager shall not take directionally opposite positions in the schemes managed by him," Sebi said.

For example, a fund manager should not buy a particular stock in a scheme and sell the same stock in another scheme at the same time. He should maintain consistency of view across portfolios managed by him. Also, to avoid conflict of interest with the same fund manager across mutual fund schemes and products, the regulator said asset management companies will have to disclose on their websites the returns provided by the same manager for all the schemes (mutual fund, offshore funds, etc) on a monthly basis. Besides, performance advertisement issued by the fund house should provide details of returns of all the schemes managed by the same fund manager, the circular said.

"In case the difference between the annual returns provided by the schemes managed by the same fund manager is more than 10%, then the same shall be reported to the trustee and explanation for the same shall be disclosed on the website of the AMC," Sebi said.

Asset management companies will have to disclose on their websites all details of debt and money market securities transacted (including inter scheme transfers) in their schemes' portfolios. The details should then be forwarded to industry body AMFI for consolidation and dissemination. "These disclosures shall be made settlement datewise on a daily basis with a time lag of 30 days," Sebi said. (Economic Times)