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Sebi comes out with new registration framework on transfer of biz by intermediaries

NEW DELHI: Capital markets watchdog Sebi on Friday put in place a brand new registration framework for registered intermediaries transferring enterprise to different authorized entity.

In a round, the regulator stated it has been receiving registration purposes pursuant to switch of enterprise (Sebi regulated enterprise exercise) from one authorized entity which is a Sebi registered middleman (transferor) to a different authorized entity (transferee).

On this regard, Sebi clarified that the transferee won’t receive contemporary registration from the regulator in the identical capability earlier than the switch of enterprise if it isn’t registered with the markets watchdog in the identical capability.

Sebi will challenge a brand new registration quantity to transferee completely different from the transferor’s registration quantity if “enterprise is transferred by way of regulatory course of (pursuant to merger/amalgamation/company restructuring by the use of order of main regulator/govt/NCLT, and many others) or non-regulatory course of (as per personal settlement/MOU pursuant to business dealing/personal association) regardless of transferor continues to exist or ceases to exist after the stated switch”.

In case of change in management pursuant to each regulatory course of and non-regulatory course of, prior approval and contemporary registration will probably be obtained, Sebi stated.

Whereas granting contemporary registration to the identical authorized entity pursuant to alter in management, the identical registration quantity will probably be retained, it added.

If the transferor ceases to exist, its certificates of registration will probably be surrendered.

In case of full switch of enterprise by the transferor, it can give up its certificates of registration and in case of partial switch of enterprise by the transferor, it will probably proceed to carry a certificates of registration, Sebi famous.

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