sebi: AIFs: Sebi streamlines approval process for sponsor changes requiring NCLT nod

Markets regulator Sebi has streamlined the process for approval with respect to change in control of sponsor and manager of Alternative Investment Funds (AIFs) involving a scheme of arrangement under the companies law.

In a circular on Wednesday, the watchdog said such applications seeking approval for the proposed change in control of the Sponsor and/or Manager of the AIF can be filed with Sebi prior to filing the applications with the National Company Law Tribunal (NCLT).

“Upon being satisfied with compliance of the applicable regulatory requirements, in-principle approval will be granted by Sebi,” it said.

According to the regulator, the validity of such in-principle approval would be three months from the date of issuance, within which the relevant application should be made to NCLT.

The latest circular has been issued to “streamline the process of providing approval” with respect to such changes.

Sebi said that within 15 days from the date of NCLT order, the applicant should submit the requisite documents, including copies of the order and approved scheme, for the final approval.

The circular would be applicable to all the applications for change in control of Sponsor and/or Manager Of the AIF for which the scheme(s) of arrangement is filed with NCLT on or after April 1, 2022.

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