New Delhi Markets regulator Sebi on Monday came out with the procedure to be followed for the proposed change in control of an asset management company linked to the scheme of arrangement, which requires the approval of the National Company Law Tribunal (NCLT).
SEBI said in a circular that this procedure would be applicable to all applications for change of control of an asset management company (AMC) for which the arrangement plan has been filed with the NCLT on or after March 1, 2022.
The application for approval for the proposed change in control of the AMC will have to be filed with SEBI before it is filed with the NCLT.
Thereafter, an in-principle approval will be given by SEBI if the regulator is satisfied with compliance with the applicable regulatory requirements.
This approval will be valid for three months from the date of its issue and the relevant application to NCLT is required to be made within this time period.
SEBI said certain documents have to be submitted within 15 days from the date of NCLT order for final approval from SEBI.
These include details of amendments, if any, in the approved scheme along with the draft scheme, and the reasons therefor and the details of compliance with the conditions mentioned in the in-principle approval of SEBI.
The move is aimed at streamlining the process of granting approval to the proposed change in control of the AMC, including the planning of arrangements that require NCLT approval as per the provisions of the Companies Act, 2013.
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