SEBI Mandates Prior Approval for Change in Control of the Intermediary in Matter of Schemes of Arrangement
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- Last Updated on 14 August, 2023
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Circular No. SEBI/HO/CFD/PoD-2/P/CIR/2023/141, Dated: 10.08.2023
Earlier, SEBI specified the procedure for seeking prior approval for a change in control of certain intermediaries, including Merchant Bankers and Bankers to an Issue. Now, SEBI has mandated prior approval from the board for change in control of market intermediaries in the matter of Schemes of Arrangement.
Accordingly, the application for approval of the proposed change in control of the intermediary must be filed with SEBI prior to filing the application with the NCLT. The validity of such in-principle approval must be three months from the date of issuance, within which the relevant application shall be made to NCLT.
Within 15 days from the date of the order of NCLT, the intermediary must submit an online application to the SEBI for final approval, along with the required documents. The circular is effective from 01.09.2023.
Further, the Circular supersedes Circular No. CIR/MIRSD/14/2011 dated August 02, 2011, to the extent that they relate to Merchant Bankers and Bankers to an Issue.
Click Here To Read The Full Circular
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