The Securities and Exchange Board of India (SEBI) has simplified the process for changing a portfolio manager's control, according to a circular issued by the securities regulator.
The circular's provisions will take effect on June 15. SEBI has now laid down the method that portfolio managers must follow when dealing with plans of arrangement that require clearance from the National Company Law Tribunal. A court-approved agreement between a firm and its shareholders or creditors is known as a plan of arrangement.
In such circumstances, the market regulator has specified that Portfolio managers must file an application seeking approval for the proposed change in control with SEBI prior to filing an application with the National Company Law Tribunal.. SEBI will grant in-principle approval to the portfolio manager after being satisfied with the latter's compliance with the applicable regulatory requirements. The in-principle approval will be valid for three months.
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