Regulatory Alerts2024-12-27
SEBI Circular on Prior Approval for Change in Control via Transfer or Transmission of Shareholdings
The Securities and Exchange Board of India issued a circular clarifying that transfers or transmissions of shareholdings among immediate relatives do not constitute a change in control for unlisted intermediaries. The document specifies distinct rules for proprietary firms, where such transfers require prior approval and fresh registration, and partnership firms, where partner changes may trigger reconstitution or dissolution depending on the partnership deed. Incoming entities or shareholders acquiring controlling interest must satisfy fit and proper person criteria, and self-regulatory organizations are directed to update their bye-laws accordingly.
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