The Securities and Exchange Board of India vide its notification dated 23rd March 2022, has streamlined the process of providing approval to the proposed change in control of the Sponsor and/or Manager of the AIF involving scheme of arrangement.
The application seeking approval for the proposed change in control of the Sponsor and/or Manager of the AIF under Regulation 20(13) of AIF Regulations shall be filed with SEBI prior to filing the application with the NCLT. Upon being satisfied with compliance of the applicable regulatory requirements, in-principle approval will be granted by SEBI.
The validity of such in-principle approval shall be three months from the date of issuance, within which the relevant application shall be made to NCLT. Within 15 days from the date of order of NCLT, applicant shall submit the following documents to SEBI for final approval.
- Application for the final approval;
- Copy of the NCLT Order approving the scheme;
- Copy of the approved scheme;
- Statement explaining modifications, if any, in the approved scheme vis-à-vis the draft scheme and the reasons for the same; and
- Details of compliance with the conditions/ observations mentioned in the in-principle approval provided by SEBI.
