Transfer of business by SEBI registered intermediaries to other legal entity
Summary
This circular clarifies the regulatory requirements for SEBI registered intermediaries transferring their business to another legal entity. It mandates that transferees must obtain fresh registration if not already registered in the same capacity, with specific rules for registration number issuance based on the transfer process. The document further outlines procedures for surrendering or retaining registration certificates depending on whether the transfer is complete, partial, or involves a change in control.
Text
The transferee shall obtain fresh registration from SEBI in the same capacity before the transfer of business if it is not registered with SEBI in the same capacity.
SEBI shall issue new registration number to transferee different from transferor’s registration number in the following scenario: Business is transferred through regulatory process... or non-regulatory process... irrespective of transferor continues to exist or ceases to exist after the said transfer.
In case of change in control pursuant to both regulatory process and non-regulatory process, prior approval and fresh registration shall be obtained.
While granting fresh registration to same legal entity pursuant to change in control, same registration number shall be retained.
If the transferor ceases to exist, its certificate of registration shall be surrendered.
In case of complete transfer of business by transferor, it shall surrender its certificate of registration.
In case of partial transfer of business by transferor, it can continue to hold certificate of registration.
Source: SecMarx — Transfer of business by SEBI registered intermediaries to other legal entity. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.