Regulation 22(e) of SEBI (Mutual Fund) Regulations 1996 (“MF Regulations”), inter-alia, requires that no change in the control of the asset management company (“AMC”) shall be made unless prior approval of the trustees and SEBI is obtained. SEBI Circular dated March 04, 2021, inter-alia, prescribes procedures to be followed for the change in control of an AMC.
To streamline the process of providing approval to the proposed change in control of an AMC involving scheme of arrangement which needs sanction of National Company Law Tribunal (“NCLT”) in terms of the provisions of the Companies Act, 2013, following has been decided:
i. The application seeking approval for the proposed change in control of the AMC under Regulation 22(e) of MF Regulations shall be filed with SEBI prior to filing the application with the NCLT;
ii. Upon being satisfied with compliance of the applicable regulatory requirements, an in-principle approval will be granted by SEBI;
iii. The validity of such in-principle approval shall be three months from the date of issuance, within which the relevant application shall be made to NCLT
iv. Within 15 days from the date of order of NCLT, applicant shall submit the following documents to SEBI for final approval: a. 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 mentioned in the in-principle approval provided by SEBI.
All other provisions mentioned in the para C (3) of SEBI Circular dated March 04, 2021 regarding the procedure for Change in Control of AMC shall remain unchanged.
The provisions of this Circular shall be applicable to all the applications for change in control of AMC for which the scheme(s) of arrangement are filed with NCLT on or after March 1, 2022.
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