In a circular issued on Thursday, Sebi has also asked the portfolio management services (PMS) firms to inform their investors about changes in control at least a month before. Also, PMS firms undergoing a change in control will now have to seek prior Sebi approval through an online application. These changes will be effective from June 15.
PMS is an investment avenue for wealthy investors with a minimum ticket size of ₹50 lakh.
“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 to effecting the same and give an option to exit without any exit load, within a period of not less than 30 calendar days, from the date of such communication,” the circular said.
In cases where the scheme of arrangement needs National Company Law Tribunal(NCLT) approval, Sebi has asked the PMS firms to obtain the NCLT nod before approaching Sebi. Further, the portfolio managers need to file an online application with Sebi within 15 days of receiving the NCLT approval order.
