Periodical Report – Grant of prior approval to Depository Participants
Summary
This circular mandates Depository Participants to obtain prior SEBI approval for any change in control. It requires NSDL and CDSL to submit periodical reports detailing specific corporate changes, such as amalgamations or director shifts. The reporting obligation applies quarterly with a submission deadline of the 7th day of the following month.
Text
With the said amendment, a Depository Participant would be required to take prior approval from SEBI for change in control.
Henceforth, the Depositories shall submit a periodical report to SEBI regarding the following changes, as per the format and in accordance with the guidelines given at Annexure A
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
bring the provisions of this circular to the notice of the Depository Participants and also disseminate the same on their websites
make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision in co-ordination with one another to achieve uniformity in approach
communicate to SEBI, the status of the implementation of the provisions of this circular in their Monthly Development Reports
The Depositories shall furnish the report to SEBI by 7th day of month following the end of each quarter
The report shall be submitted by e-mail at dp@sebi.gov.in. A hard copy of the report shall also be submitted to SEBI
Source: SecMarx — Periodical Report – Grant of prior approval to Depository Participants. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.