Mar 31, 2022Streamlining Procedure for SEBI for Change in Control of AMC involving Scheme of Arrangement
By way of Circular dated January 31, 2022, SEBI has streamlined the procedure of providing approval to a proposed change in control of an asset management company (‘AMC’) involving a scheme of arrangement requiring sanction of the National Company Law Tribunal (‘NCLT’). The key changes are as follows:
- Prior to filing the application with NCLT, an application seeking approval for the proposed change in control of the AMC under Regulation 22(e) of SEBI (Mutual Funds) Regulations, 1996 is required to be filed with SEBI;
- SEBI will grant an in-principle approval upon being satisfied with the compliance requirements which would be valid for three months from the date of issuance, within which period the relevant application is required to be filed with the NCLT; and
- Once NCLT sanctions the Scheme, within 15 days from the date of order of NCLT, the applicant is required to submit the following to SEBI for its final approval: (a) an application for the final approval; (b) copy of the NCLT Order approving the Scheme; (c) copy of the approved Scheme; (d) statement explaining modifications, if any, in the approved Scheme vis-à-vis the draft Scheme and the reasons for the same; and (e) details of compliance with the conditions / observations stated in the in-principle approval provided by SEBI.