Question: A SEBI registered investment advisory firm is being acquired by another company resulting in change in control of the business. Before completing the acquisition, the management team reviews the regulatory steps that must be followed. As per the SEBI (Investment Advisers) Regulations, 2013, what should the firm do before the change in control takes affect?
Answer: Before the change in control takes effect, the investment adviser should obtain prior approval from SEBI. The change should not be completed first and reported later, as the regulations require SEBI's approval to be obtain in advance.

Supporting evidence:
title: sebi.gov.in/sebi-investment-advisers-regulations-2013-last-amended-on-december-08-2016-_34619.html
quote: (11) In case of change in control of the investment adviser, prior approval from the Board shall be taken
context: f the opinion that the situation has changed, then it may enter into such a transaction on its own account after giving such revised assessment to the client at least 24 hours in advance of entering into such transaction.
(8) An investment advisor shall follow Know Your Client procedure as specified by the Board from time to time.
(9) An investment adviser shall abide by Code of Conduct as specified in Third Schedule.
(10) An investment adviser shall not act on its own account, knowingly to sell securities or investment products to or purchase securities or investment product from a client.
(11) In case of change in control of the investment adviser, prior approval from the Board shall be taken.

General responsibility.

(12) Investment advisers shall furnish to the Board information and reports as may be specified by the Board from time to time.
(13) It shall be the responsibility of the Investment Adviser to ensure that its representatives and partners, as applicable, comply with the certification and qualification requirements under Regulation 7 at all times.

Power of the Board over body or body corporate recognized under regulation 14.

30. The Board reserves the right to alter, modify and overrule any decision, action taken or penalties imposed by the body or body corporate recognized under regulation 14.

(Investment Advisers) Regulations, 2013

4 [ See Regulation 3]

Securities and Exchange Board of India

SEBI Bhavan, C4-A, G Block, Bandra Kurla Complex, Bandra (East), Mumbai 400051 India

II. In case applicant is a company:

1. Shareholding pattern and profile of the directors (Enclose identity proof and address proof of the directors).
2. Number of employees and agents of the applicant (hereinafter referred to as 'representatives')who render/ propose to render investment advice under these regulations on behalf of the applicant.
3. Declaration by the applicant that its representatives currently comply with the certification and qualification requirements under regulation 7. (If the applicant is an existing investment adviser applying for fresh registration, then provide a declaration stating that the applicant shall ensure that all its representatives obtain such certification within two years from the date of commencement of theseregulations and after all its representatives obtain the certification, a declaration to that effect shall be submitted to SEBI.)
4. Declaration by the applicant that it shall ensure that its representatives comply wit