Procedure for seeking prior approval for change in control of SEBI registered Portfolio Managers
Summary
This circular outlines the procedure for SEBI registered Portfolio Managers to obtain prior approval for any change in control. It mandates that applications be submitted online via the SEBI Intermediary Portal and specifies a six-month validity period for such approvals. Additionally, it requires Portfolio Managers to inform existing investors about the proposed change before implementation.
Text
Regulation 11(aa) of the SEBI (Portfolio Managers) Regulations, 2020 requires Portfolio Managers to obtain prior approval of SEBI in case of change in control.
An online application shall be made to SEBI for prior approval through the SEBI Intermediary Portal.
The prior approval granted by SEBI shall be valid for a period of six months from the date of such approval.
Applications for fresh registration pursuant to change in control shall be made to SEBI within six months from the date of prior approval.
All the existing investors/ clients shall be informed about the proposed change prior to effecting the same, in order to enable them to take well informed decision regarding their continuance or otherwise with the changed management.
This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with Regulation 43 of the SEBI (Portfolio Managers) Regulations, 2020.
Source: SecMarx — Procedure for seeking prior approval for change in control of SEBI registered Portfolio Managers. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.