Sebi lays out process for change in AMC control involving scheme of arrangement requiring NCLT sanction

The procedure will be applicable to all the applications for change in control of an asset management company (AMC) for which the scheme of arrangement is filed with NCLT on or after March 1, 2022, Sebi said in a circular.

The application seeking approval for the proposed change in control of the AMC needs to be filed with Sebi prior to filing it with the NCLT.

Thereafter, an in-principle approval will be granted by Sebi if the regulator is satisfied with compliance of the applicable regulatory requirements.

This approval will be valid for three months from the date of its issuance and the relevant application to NCLT is required to be made within this time period.

For the final approval from Sebi, certain documents have to be submitted within 15 days from the date of NCLT’s order, Sebi added.

These include a statement explaining modifications, if any, in the approved scheme vis-à-vis the draft scheme and the reasons for the same and details of compliance with the conditions mentioned in Sebi’s in-principle approval, among others.

The move is aimed at streamlining the process of providing approval to the proposed change in control of an AMC involving scheme of arrangement which needs sanction of NCLT in terms of provisions of the Companies Act, 2013.