Change in control of Portfolio Managers providing Co-investment services
Summary
This circular partially modifies a previous directive regarding the procedure for seeking prior approval for changes in control of Portfolio Managers. It mandates that Portfolio Managers must inform existing investors about proposed changes and offer an exit option without exit load within 30 days. For clients under co-investment portfolio management services, specific compliance with Regulation 22(2) of PMS Regulations is required.
Text
The Circular stands partially modified and para 2 (iv) of the said Circular may be read as under: “Pursuant to grant of prior approval by SEBI, in order to enable existing investors/clients to take well informed decision regarding their continuance or otherwise with the changed management, the portfolio manager shall inform its existing investors/ clients about the proposed change prior to effecting the same and give an option to exit without any exit load, within a period of not less than 30 calendar days, from the date of such communication. However, for the clients under co-investment portfolio management services, the Portfolio Manager shall ensure compliance with the second proviso of Regulation 22 (2) of PMS Regulations.”
All other requirements, terms and conditions specified in the Circular shall remain unchanged.
This Circular is issued in exercise of powers conferred under Section 11(1) of the SEBI Act, 1992 read with the provisions of Regulation 43 of the SEBI (Portfolio Managers) Regulations, 2020 to protect the interest of investors in securities and to promote the development of, and to regulate the securities market.
Source: SecMarx — Change in control of Portfolio Managers providing Co-investment services. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.