With regard to transfers between immediate relatives, SEBI has clarified in its circular that transfer of shares between immediate relatives will not constitute a “change in control”.
Close relatives include spouses, parents, siblings, and children.
On transmission of shareholding, the regulator said that transmission of shares, whether to close relatives or others, would also not result in change of control for unlisted body corporate intermediaries.
In the case of proprietary firms, any transfer or inheritance of ownership will be considered a change in control. Further, the legal heirs are required to take prior approval of SEBI and get fresh registration in their name.
-
Stock trading
A Masterclass on Value Investing and Company Valuation
-
Stock trading
Market 104: Options Trading: Kickstart Your F&O Venture
-
Stock trading
Technical Analysis For Everyone – Technical Analysis Course
-
Stock trading
Stock markets made easy
-
Stock trading
Renko chart patterns made easy
-
Stock trading
Market 101: Insights into Trendlines and Momentum
-
Stock trading
Markets 102: Mastering Sentiment Indicators for Swing and Positional Trading
-
Stock trading
Dow theory simplified
-
Stock trading
Market 103: Mastering Trends with RMI and Techno-Funda Insights
-
Stock trading
ROC Made Easy: A Master Course for the ROC Stock Indicator
-
Stock trading
Hackin Ashi Trading Tricks: Master the Art of Trading
-
Stock trading
RSI Made Easy: RSI Trading Course
-
Stock trading
Introduction to Technical Analysis and Candlestick Theory
For a partnership with more than two partners, a transfer of ownership between partners will not be treated as a change in control.
If a partner dies and the partnership deed allows legal heirs to join, the firm will be reconstituted without the need for fresh registration.
However, inducting a new partner will require SEBI’s approval.
Incoming shareholders or partners acquiring a controlling interest are required to meet the “fit and proper person” norms laid down in SEBI’s Intermediaries Regulations, 2008.
The provisions mentioned in the circular are effective immediately.
(You can now subscribe to our ETMarkets WhatsApp channel)
