Comment: This signifies a major shift in the regulator's perception towards ring fencing and segregated portfolio structures not necessarily seeing them as inherently opaque. An SPC is permitted to create segregated portfolios. Segregation refers to the separation of assets from a larger group or creating separate accounts for specific groups, assets, or individuals. A segregated portfolio company, sometimes referred to as a protected cell company, is a company which segregates the assets and liabilities of different classes of shares from each other and from the general assets of the SPC. segregated portfolio News and Updates from The Economictimes.com. Once the trustees’ approval is received, the segregated portfolio is created on the date of the downgrade by transferring the affected instrument at its current realisable value to this portfolio. 2 … Under Cayman Companies Law, an SPC is an exempted company which has been registered as a segregated portfolio company. Every segregated portfolio funds and other assets can only be used to satisfy liabilities and creditors directly associated with the portfolio. The Companies Law of the Cayman Islands of 1998 (Part XIV) was originally enacted to follow several other countries and tax havens which established Protective Cell Companies (PCC) for their insurance industries … Once registered under the Cayman Islands Companies Law, a segregated portfolio company (“SPC”) can operate segregated portfolios (“SPs”) with the benefit of statutory segregation of assets and liabilities between portfolios. Any asset or liability linked to a particular segregated portfolio is deemed to be separate from the assets or liabilities of other segregated portfolios and from the SPC at large. The concept of an SPC is that a company, which remains a single legal entity, may create segregated portfolios (Portfolios) such that the assets and liabilities of each Portfolio are legally separate from the assets and liabilities of any other Portfolio and fr… The existing investors in the scheme as on the day of such credit event shall be allotted equal number of units in the segregated portfolio as held in the main portfolio. Tata Asset Management Ltd is the only fund house so far to notify the creation of segregated portfolios in affected schemes. A segregated portfolio that contains no assets or liabilities can be terminated in accordance with the provisions of the BC Act and regulations made thereunder. Succinct FinTech Services Private Limited does not sell or distribute any financial products. However, in order to facilitate exit to unit holders in segregated portfolio, AMC shall enable listing of units of segregated portfolio on the recognized stock exchange within 10 working days of creation of segregated portfolio and also enable transfer of such units on receipt of transfer requests. Your email address will not be published. The segregated portfolio company (SPC), which is a type of exempted company, was first introduced in the Cayman Islands in May 1998 by an amendment to the Companies Law (Revised). Tomorrow is different. Once registered under the Cayman Islands Companies Law, a segregated portfolio company (“SPC”) can operate segregated portfolios (“SPs”) with the benefit of statutory segregation of assets and liabilities between portfolios. AMC will be handling both the schemes separately. 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