- The decision to streamline the process of approval for the proposed changes in the control of entities was taken by SEBI.
- The revision was done by SEBI by exercising its powers conferred under Section 11(1) of the SEBI Act 1992 and will be effective from 01 December 2022.
- The new guideline states that the intermediary must apply online on the SEBI Intermediary Portal (SI Portal) for acquiring SEBI’s prior approval.
- The approval granted by SEBI will be valid for 6 months from the date of approval.
- The intermediary shall also provide a declaration that there will be no change in the Board of Directors till the time SEBI grants them prior approval.
- If they require the National Company Law Tribunal (NCLT)-approval, the application for the same must be filed with SEBI before applying with the NCLT.
- SEBI is a Government of India-owned regulatory authority that was established in 1992 with its headquarters in Mumbai. The current Chairperson of it is Madhabi Puri Buch.
Question:
Q.1 According to the recently revised frameworks by SEBI for approving changes in the control of stock brokers, the prior approval granted by SEBI will be valid for?a. 1 month
b. 3 months
c. 6 months
d. 12 months
