SEBI issues clarifications w.r.t. transfer of shareholdings among immediate relatives and transmission of shareholdings and their effect on change in control for market intermediaries; Lays down scenarios whereby change in shareholding of the intermediary will not be construed as change in control, namely – (i) transfer of shareholding among immediate relatives (as defined under Regulation 2(l) of SEBI SAST Regulations), (ii) transfer of shareholding by way of transmission to immediate relative or not, shall not result into change in control; Specifies that in case of an intermediary being a proprietary concern, the transfer or bequeathing of the business/capital by way of transmission to another person is a change in the legal formation or ownership and hence by the definition of change in control, such transmission or transfer shall be considered as change in control; Adds that legal heir / transferee in the aforementioned cases is required to obtain prior approval and thereafter fresh registration shall be obtained in the name legal heir/transferee; Further elucidates on when change in partners and their ownership interest of the partnership firm type intermediary will require prior approval from SEBI, lastly states that incoming entities/shareholders becoming part of controlling interest in the intermediary pursuant to transfer of shares from immediate relative/transmission of shares (immediate relative or not), need to satisfy fit and proper person criteria stipulated in SEBI (Intermediaries) Regulations, 2008: SEBI
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