Disposal of sponsor's shares - AMCs

[Star]

Dears,

Rule 5 of the NBFC Rules, 2003 requires that prior approval from SECP must be obtained before the disposal of sponsor's shares.

What are the documents/information to be sent to SECP for this purpose with reference to NBFC Rules and Regulations?

Regards,


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[ciapk]

Dear Star,

As per my understanding, those are promoters, majority shareholders and directors who have given an undertaking at the time of formation of NBFC that they will not sale or transfer their shares without prior approval of the SECP. So the Company will not be required to submit any information in this regard. However, the concerned individual may by writing a letter to SECP and giving reference to such undertaking may seek approval of SECP. However, if there is change in directorship and pattern of shareholding etc then NBFC have to submit required Forms e.g Form 29 Form 28 or Form 27 etc being a Public Limited Company.

[Star]

Dear please reply in contex with NBFC Rules.

[ciapk]

Rule 5(f)

[Star]

I mean what documentation is required to submitt to SECP alongwith request for approval.

[ciapk]

Not mentioned anywhere in rules as well as in regulations, but copy of undertaking already given could be attached.

[Star]

Please read Fit & Proper Criteria carefully.

[ciapk]

Schedule IX but where is requirement of documents to submit for approval for disinvestment? as i said they can give reference to the undertaking that they have submitted at the time of formation of NBFC which is Annex A and B?

[Star]

Dear, there is certain Fit & Proper Criteria for the major shareholder of NBFC, if a company going to dispose of it major shareholding of NBFC to person X, then the person X will be prospective major shareholder of NBFC which would be definately meet the Fit & Proper Criteria for major shareholder.

Regards,

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[ciapk]

Hmmm ok but question was "Rule 5 of the NBFC Rules, 2003 requires that prior approval from SECP must be obtained before the disposal of sponsor's shares. So you mean that the NBFC will find prospective shareholders and will check that they are fit and proper and then will send Annex A and B to SECP and will seek approval for disposal or sponsor's share to such new persons?.

[Star]

I think you are now on the correct line.

Please analyze and tell me which documentation would be necessary to send alongwith letter of prior approval to SECP.

Regards,

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[ciapk]

Dear Star, fit and proper criteria is for directors, sponsors and major shareholders, so what if the sponsors are desiring to sell their share to general public without any major shareholder? I dont think annex A and B will be required.

[Star]

Just to think about an unlisted NBFC where general public is not invloved.

Regards,

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