The Securities and Exchange Board of India (SEBI) on December 27, 2024, issued a circular regarding prior approval for change in control: Transfer of shareholdings among immediate relatives and transmission of shareholdings and their effect on change in control.
The following has been stated: -
•SEBI has clarified rules regarding the transfer and transmission of shareholding in intermediaries like investment advisers (IAs), research analysts (RAs), and KYC registration agencies (KRAs).
•Transfers among immediate relatives or via transmission will not result in a change of control for unlisted body corporates. However, such transfers may require prior SEBI approval and fresh registration for proprietary firms and partnerships.
•All incoming entities must meet SEBI’s fit and proper person criteria, and the circular is effective immediately.
The detailed circular is given in the document below.
[Circular No. SEBI/HO/MIRSD/ MIRSD-PoD-1/P/CIR/2024/164]
