Periodical report- Grant of prior approval to merchant bankers
Summary
SEBI has dispensed with the requirement for merchant bankers to obtain prior approval for changes in status or constitution. However, merchant bankers must still secure prior approval from SEBI specifically for any change in control. Additionally, they are required to report amalgamations, director changes, and shareholding changes via half-yearly reports.
Text
With the said amendment, the requirement of taking prior approval by the merchant bankers from SEBI for change in status or constitution has been dispensed with.
However, the merchant bankers are required to take prior approval from SEBI for change in control.
Further, the merchant bankers shall continue to report the following change(s) to SEBI through the half-yearly reports submitted in accordance with SEBI Circular No. MIRSD/DPS-2/MB/Cir-16/2008 dated May 06, 2008;
Amalgamation, demerger, consolidation or any other kind of corporate restructuring falling within the scope of section 391 of the Companies Act, 1956 (1 of 1956) or the corresponding provision of any other law for the time being in force
Change in Director, including managing director/ whole-time director
Change in shareholding not resulting in change in control
This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Source: SecMarx — Periodical report- Grant of prior approval to merchant bankers. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.