SEBI vide its Circular dated 21st March, 2023 issued for The Managing Directors / Chief Executive Officers, All registered Vault Managers and All registered Depositories
The circular states:
This circular is issued to protect the interests of investors in the securities market and promote the development and regulation of the securities market. It is in accordance with Section 11(1) of the Securities and Exchange Board of India Act, 1992 and Regulation 28 of the SEBI (Vault Managers) Regulations, 2021.
The procedure for obtaining prior approval for changes in control of Vault Managers is specified as under:
An application shall be made by the Vault Managers to SEBI for prior approval through the SEBI Intermediary Portal (‘SI Portal’).
The application must include information/declaration about the applicant, the acquirer(s)/person(s) with control, and their directors/partners.
SEBI will process an application for prior approval for a change in control based on the information/declaration provided.
SEBI’s prior approval is valid for six months from the date of approval. Applications for fresh registration must be made to SEBI within six months of prior approval.
The Vault Manager must receive prior approval from SEBI for a change in control and communicate to its existing EGR investors about the proposed change in control and an option to relocate the physical gold stored in its vault(s) within 30 calendar days from the date of such communication.
The Vault Manager must ensure that any matters involving schemes of arrangement need sanction from the NCLT in accordance with the Companies Act, 2013.
This circular shall come into force with immediate effect.
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