Capital markets regulator Sebi on Wednesday came out with a procedure for seeking its prior approval in case of change in control of portfolio managers.
Under this, an online application needs to be made to the market’s regulator for prior approval through the Sebi Intermediary Portal, it said in a circular.
The prior approval granted by the regulator will be valid for a period of six months from the date of such go ahead.
Further, applications for fresh registration following change in control will be made to Sebi within six months from the date of prior approval.
Pursuant to the approval, all the existing investors or clients will 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, Sebi said.
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In April, the Securities and Exchange Board of India (Sebi) had notified norms whereby portfolio managers need to obtain prior approval of the capital markets regulator in case of change in control.
Sebi had earlier in March issued new framework for portfolio managers with regard to their qualifications.
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