The entities satisfying the following eligibility criteria and any other criteria or terms and conditions, or any modifications, as may be specified in the selection process referred to in regulation 3,shall be eligible to participate in the selection process for central recordkeeping agency :-
(a) the applicant shall be a company formed and registered under the Companies Act, 1956 (1 of 1956) or under any other central enactment, and registered with the service tax authority and operating for the last five years in the country;
(b) the applicant should have made net profit in any three out of the last five financial years and should not have incurred cash loss during the preceding two years;
(c) the applicant, its director, principal officer should not have been black listed by any regulatory Authority or Governments (Central and States) or should not have been convicted of any offence involving moral turpitude or of any economic offence;
(d) Information technology capabilities and sufficiently qualified and experienced manpower, as specified by the Authority in the selection process.
(e) the amounts, numbers or figures, as applicable, in respect of the following criteria shall be specified by the Authority on the date of inviting applications for registration under the selection process,-
(i) the applicant should have minimum positive net worth, as on the last day of the preceding financial year, as specified by Authority. the applicant should have demonstrated experience in developing and managing technology based central administration and recordkeeping system;
(ii) the applicant should have minimum number of experience, in years, with central recordkeeping and administration functions, as specified by the Authority;
(iii) the applicant should have experience in managing over a defined number of individual accounts per year over the last three years, as specified by the Authority;
(iv) any other criteria as may be specified by the Authority;
(f) a direct or indirect cross holding by any intermediary or its sponsor under the central recordkeeping agency should be less than forty percent of the paid up capital.