SEBI has vide its circular dated 12th May, 2021 mandated the registered portfolio managers shall take prior approval when a change in control of the portfolio managers is being considered. SEBI has listed steps that the portfolio managers should take in such circumstances.
Regulation 11(aa) provides that a Portfolio Manager shall obtain prior approval of SEBI in case of change in control in such manner as may be specified by SEBI. Accordingly, it has been decided that all SEBI registered Portfolio Managers shall comply with the following in case they propose a change in control:
a. An online application shall be made to SEBI for prior approval through the SEBI Intermediary Portal (https://siportal.sebi.gov.in).
b. The prior approval granted by SEBI shall be valid for a period of six months from the date of such approval.
c. Applications for fresh registration pursuant to change in control shall be made to SEBI within six months from the date of prior approval.
d. Pursuant to grant of prior approval by SEBI, 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.