Are PMS allowed to actively trade and short sell derivatives?

General
1

I am intrigued to know is an entity can make active trades in derivatives with a PMS license and if so, are there any restrictions on Short Selling?

3

Portfolio Manager is allowed to invest in the Derivatives Segment only to the extent of the value of the portfolio.
This is for the purpose of hedging and portfolio balancing.

1 Like
4

does that mean :
e.g :
if the PMS is holding 250 shares of TCS ; then the PMS is not allowed to longbuy BUT allowed to shortsell only the 1 lot of the TCS in future derivative !

am I right in my understanding ?

5

Pls clarify