SEBI Streamlines Process for Intermediary Control Changes

11 Aug 2023 , 12:27 PM

SEBI issues circular outlining process for change in control of intermediaries like merchant bankers and bankers to an issue. Procedure follows earlier circular on similar subject released on August 2.

Intermediaries seeking approval must apply online through SEBI Intermediary Portal. Required information includes shareholding pattern, past Sebi applications, regulatory actions history, pending complaints, litigation details, compliance with SEBI fees, and more.

Declarations and undertakings about no immediate board change, informing investors, and adhering to ‘fit and proper person’ criteria required.

Registered stock brokers, clearing members, and depository participants need additional approvals from relevant exchanges and institutions. SEBI’s prior approval valid for six months; intermediary must apply for fresh registration within this period.

Circular also provides process for change in control involving NCLT-sanctioned schemes. In-principle approval granted by SEBI; valid for three months, during which NCLT application is made.

Intermediary submits SEBI application within 15 days of NCLT order, along with specified documents. SEBI’s guidelines ensure structured and transparent process for regulatory approval on change in control of intermediaries.

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