Capital markets regulator Sebi on Thursday streamlined the process of providing its approval to the proposed change in control of a portfolio manager.
The new guidelines will be applicable from June 15, the Securities and Exchange Board of India (Sebi) said in a circular.
Under this, the regulator has specified the procedure that needs to be followed by portfolio managers in matters which involve scheme(s) of arrangement which needs sanction of the National Company Law Tribunal (NCLT).
According to the regulator, an online application needs to be made to the markets regulator for prior approval through the Sebi Intermediary Portal. The prior approval granted by the regulator will be valid for a period of six months.
Further, applications for fresh registration following change in control will be made to Sebi within six months from the date of prior approval.
Pursuant to grant of prior approval by Sebi, in order to enable existing investors to take well-informed decision regarding their continuance or otherwise with the changed management, the portfolio manager is required to inform its existing investors about the proposed change prior to effecting the same and give an option to exit without any exit load, within a period of at least 30 calendar days from the date of such communication.
More From This Section
In matters which involve scheme(s) of arrangement which needs sanction of the NCLT, the portfolio manager is required to ensure the application seeking approval for the proposed change in control is filed with Sebi prior to filing the application with NCLT.
Upon being satisfied with compliance of the applicable regulatory requirements, in-principle approval will be granted by Sebi and the validity of such clearance will be three months within which the relevant application will be made to NCLT.
Within 15 days from the date of order of NCLT, the portfolio manager is required to submit an online application along with the documents, including copy of the NCLT order approving the scheme, statement explaining modifications, if any, in the approved scheme vis-a-vis the draft scheme and the reasons for the same and details of compliance with the conditions mentioned in the in-principle clearance provided by the regulator, to Sebi for final approval.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)