Transfer of Business by Sebi Registered Intermediaries to Other Legal Entity

Anupma Chadha Dy. Managing Director Phone:022-26449319 Email: anupmac@sebi.gov.in In this context, SEBI clarified that the acquirer must obtain a new registration with the regulatory authority before transferring the business in the same capacity if it is not registered with the market surveillance authority in the same capacity. 2. In the event of a change of control due to both the regulatory and non-regulatory procedures, prior authorisation and re-registration shall be obtained. Where a new registration is granted to the same legal person due to a change of control, the same registration number shall be retained. While a new registration is issued to the same legal entity due to a change of control, the same registration number is maintained, she added. 4. In the event of a complete transfer of an undertaking by the transferor, the transferor must surrender his certificate of registration. “The business is transferred through a regulatory process (under a merger/merger/corporate restructuring on behalf of the regulator/government/NCLT, etc.) or a non-regulatory process (under a private agreement/letter of intent under a commercial transaction/private agreement), whether the transferor continues to exist or ceases to exist after the transfer. The Securities and Exchange Board of India on Friday introduced a new registration framework for registered intermediaries who transfer business to another legal entity. SEBI has received applications for registration in connection with a business transfer (SEBI-regulated business) from a legal entity that is a registered intermediary with SEBI (transferor) to another legal entity (acquirer). In this context, it is clarified that 3. If the transferor ceases to exist, his registration certificate is issued.

In case of a complete transfer of the business by the seller, he will hand over his registration certificate, and in the case of a partial transfer of the business by the seller, he may continue to possess a registration certificate, SEBI noted. 1. The transferee shall, before the transfer of the undertaking, re-register SEBI in the same capacity if it is not registered with SEBI in that capacity. SEBI assigns the acquirer a new registration number different from the transferor`s registration number in the following scenario: Sub: Transfer of transactions by intermediaries registered with SEBI to another legal entity In a circular dated 26. In March 2021, the Securities and Exchange Board of India (“SEBI”) issued the following clarifications regarding the transfer of business by intermediaries registered with SEBI to other legal entities: Save my name, email address, and website in this browser for the next time I comment. In the event of a change in control due to both the regulatory and non-regulatory process, prior approval and reregistration will be obtained, SEBI said. This circular is issued in exercise of the powers conferred by Section 11 (1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote and regulate the development and regulation of the securities market. It is in this context that these clarifications have been published. Subscribe to our newsletter to stay up-to-date on taxes and corporate law. All brokers via exchanges All participants custodians by custodians All investment bankers All registrars of a share issue and transfer agent All bond trustees All rating agencies All bankers at an issue.

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