Home Market Insight SEBI clarifies rules on change of control for investment advisers, research analysts,...

SEBI clarifies rules on change of control for investment advisers, research analysts, KRAs

By
PratapDarpan
-
0
SEBI clarifies rules on change of control for investment advisers, research analysts, KRAs

Market watchdog SEBI on Friday revised rules for transfer and transmission of shareholdings between immediate relatives of investment advisers, research analysts and your client (KYC) registration agencies (KRAs). clarified. The move aims to streamline regulatory compliance and protect investors’ interests while ensuring transparency in the functioning of these intermediaries.

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

    Get certified by – The Economic Times, India’s top business news brand

  • Stock trading

    Market 104: Options Trading: Kickstart Your F&O Venture

    By – Saketh R, Founder- QuickAlpha, Full Time Options Trader

  • Stock trading

    Technical Analysis For Everyone – Technical Analysis Course

    By – Abhijit Paul, Head of Technical Research, Fund Manager- ICICI Securities

  • Stock trading

    Stock markets made easy

    By – elearnmarkets, Financial Education by StockEdge

  • Stock trading

    Renko chart patterns made easy

    By – Kaushik Akiwatkar, Derivatives Trader and Investor

  • Stock trading

    Market 101: Insights into Trendlines and Momentum

    By – Rohit Srivastava, Founder- Indianarts.com

  • Stock trading

    Markets 102: Mastering Sentiment Indicators for Swing and Positional Trading

    By – Rohit Srivastava, Founder- Indianarts.com

  • Stock trading

    Dow theory simplified

    By – Vishal Mehta, Independent Systematic Trader

  • Stock trading

    Market 103: Mastering Trends with RMI and Techno-Funda Insights

    By – Rohit Srivastava, Founder- Indianarts.com

  • Stock trading

    ROC Made Easy: A Master Course for the ROC Stock Indicator

    By – Saurdeep Dey, Equity and Commodity Trader, Trainer

  • Stock trading

    Hackin Ashi Trading Tricks: Master the Art of Trading

    By – Dinesh Nagpal, Full Time Trader, Ichimoku and Trading Psychology Expert

  • Stock trading

    RSI Made Easy: RSI Trading Course

    By – Saurdeep Dey, Equity and Commodity Trader, Trainer

  • Stock trading

    Introduction to Technical Analysis and Candlestick Theory

    By – Dinesh Nagpal, Full Time Trader, Ichimoku and Trading Psychology Expert

    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)

    RELATED ARTICLES

    NO COMMENTS

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    ©
    Exit mobile version