SEBI issues a circular announcing a change in control for portfolio managers providing co-investment services. Stay informed about the regulatory updates shaping the landscape of investment management.

1. SEBI Issues Circular for Change in Control of
Portfolio Managers Providing Co-Investment
Services

2. On 10th January 2023, the Securities and Exchange Board of
India (SEBI) issued a Circular in regard to the Change in Control
of Portfolio Managers providing Co-Investment Services. This
particular circular was issued in reference to Circular No.
SEBI/HO/IMD-1/ DOF1/P/CIR/2022/77 issued on 02nd June
2022, which specified the procedure for seeking prior approval
in case of a change in control of the Portfolio Manager.
The Circular henceforth stands partially modified in para 2 (iv)
of the said Circular, which is to be read as under -
"Pursuant to the grant of prior approval by SEBI, in order to
enable existing investors/ clients to take a well-informed decision
regarding their continuance or otherwise with the changed
management, the portfolio manager shall inform its existing
investors/ clients about the proposed change prior toeffecting
the same and give the option to exit without any exit load, within
a period of not less than 30 calendar days, from the date of such
communication. However, for the clients under co- investment
portfolio management services, the Portfolio Manager shall
ensure compliance with the second proviso of Regulation 22 (2)
of PMS Regulations."
All the other requirements, terms and conditions specified in
the Circular are to remain unchanged.
The Circular is issued through the exercise of powers as
conferred under Section 11 (1) of the SEBI Act, 1992, to be read
with the provisions of Regulation 43 of the SEBI (Portfolio
Managers) Regulations, 2020, which protects the interest of the
investors in securities and to promote the development of, and
to regulate the securities market.
Official Notification Attached here
Sushree Dash
Legal Researcher