(1) 31[Registration granted under regulation 8] shall be subject to the following conditions, namely:—
(a) where the merchant banker proposes32[change in control], it shall obtain prior approval of the Board for continuing to act as such after the change;
(b) 33[it shall pay the fees for registration, in the manner provided in these regulations;]
(c) it shall take adequate steps for redressal of grievances of the investors within one month of the date of the receipt of the complaint and keep the Board informed about the number, nature and other particulars of the complaints received;
(d) it shall maintain capital adequacy requirements specified in regulation 7 at all times during the period of the34[***];
(e) it shall abide by the regulations made under the Act in respect of the activities carried on by it as merchant banker.
renewal, as the case may be, and a declaration stating that no changes other than those as mentioned in such details have taken place.
(2) The application of renewal, under sub-regulation (1), shall be dealt with in the same manner as if it were a fresh application for grant of a certificate :
Provided that in the case of an application for renewal of certificate of registration, the provisions of clause (a) of regulation 6 shall not be applicable up to June 30, 1998.
(3) The Board on being satisfied that the applicant is eligible for renewal of certificate shall grant a certificate in Form B and sent an intimation to the applicant.
(4) & (5) -Omitted
(6) On the grant of a certificate the applicant shall be liable to pay the fees in accordance with Schedule II.‖ 30 Inserted by the Securities and Exchange Board of India (Merchant Bankers) (Third Amendment) Regulations,
2006. w.e.f. 7-9-2006.
31 Substituted for the words ―Any 31 [initial registration] granted under regulation 8 or any 31 [permanent registration granted under regulation 8A‖ by the Securities andExchange Board ofIndia (Change In Conditions Of Registration Of Certain Intermediaries) (Amendment) Regulations,2016 w.e.f. 08-12-2016.
Prior to the above, the words ―initial registration‖ was substituted for ―registration‖ and the words ―permanent registration granted under regulation 8A‖ was substituted for the words ―renewal granted under regulation 9‖ by the Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 2011 w.e.f. 5-7-
2011.
32 Substituted for ―to change its status or constitution‖ by the (Change in conditions of Registration of Certain Intermediaries) (Amendment) Regulations, 2011. w.e.f. 19-04-2011.
33 Substituted by the Securities andExchange Board ofIndia (Change In Conditions Of Registration Of Certain Intermediaries) (Amendment) Regulations,2016 w.e.f. 08-12-2016. Prior to substitution clause (b) read as udner ―(b) it shall pay the fees for 33 [initial registration or permanent registration], as the case may be, in the manner provided in these regulations;‖ Prior to the above, the words ―initial registration or permanent registration‖ were substituted for the words ―registration or renewal‖ by the Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 2011 w.e.f. 5-7-2011.
34 The words ―initial registration or permanent‖ were omitted by the Securities andExchange Board ofIndia (Change In Conditions Of Registration Of Certain Intermediaries) (Amendment) Regulations,2016 w.e.f. 08-12-
2016. Prior to omission, the words ―initial registration or permanent‖ were sbstituted for the words ―certificate or renewal thereof‖ by the Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 2011 w.e.f. 05-07-2011.
Page 11 of 31 35[(f)it shall immediately intimate the Board, details of changes that have taken place in the information that was submitted, while seeking registration.]
(2) Nothing contained in clause (a) of sub-regulation (1) shall affect the obligation to obtain a fresh registration under section 12 of the Act in cases where it is applicable.
36[9B ***] Procedure where registration is not granted.
10.37[(1) Where an application for grant of a certificate of registration under regulation 3 does not satisfy the criteria set out in regulation 6, the Board shall reject the application after giving an opportunity of being heard.]
38[(2) The refusal to grant registration, shall be communicated by the Board within thirty days of such refusal to the applicant stating therein the grounds on which the application has been rejected.]
(3) Any applicant may, being aggrieved by the decision of the Board under subregulation (1), apply within a period of thirty days from the date of receipt of such intimation to the Board for reconsideration of its decision.
(4) The Board shall reconsider an application made under sub-regulation (3) and communicate its decision as soon as possible in writing to the applicant.
39[11. Effect of refusal to grant certificate of permanent registration.
35 Inserted by the Securities andExchange Board ofIndia (Change In Conditions Of Registration Of Certain Intermediaries) (Amendment) Regulations,2016 w.e.f. 08-12-2016.
36 Omitted by the by the Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 2011 w.e.f. 05-07-2011. Prior to the substitution the regulation read as under:
― Period of validity of certificate.
9B.The certificate of registration granted under regulation 8 and its renewal granted under regulation 9, shall be valid for a period of three years from the date of its issue to the applicant.‖ 37 Substituted by the Securities andExchange Board ofIndia (Change In Conditions Of Registration Of Certain Intermediaries) (Amendment) Regulations,2016 w.e.f. 08-12-2016. Prior to substitution, sub-regulation (1) read as under:
―(1) Where an application for grant of a certificate 37 [of initial registration under regulation 3 or of permanent registration under regulation 8A] does not satisfy the criteria set out in regulation 6, the Board may reject the application after giving an opportunity of being heard.‖ Prior to this the words ―of initial registration under regulation 3 or of permanent registration under regulation 8A‖ were substituted for the words ―under regulation 3 or of renewal under regulation 9‖ by the Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 2011 w.e.f. 05-07-2011.
38 Substituted by the Securities andExchange Board ofIndia (Change In Conditions Of Registration Of Certain Intermediaries) (Amendment) Regulations,2016 w.e.f. 08-12-2016. Prior to substitution, sub-regulation (s) read as under:
―(2) The refusal to grant 38 [initial registration or permanent registration, as the case may be,] shall be communicated by the Board within thirty days of such refusal to the applicant stating therein the grounds on which the application has been rejected.‖ Prior to this the words ―initial registration or permanent registration, as the case may be,‖ were substituted for the word ―registration‖ by the Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 2011 w.e.f. 05-07-2011.
39 Omitted by the Securities andExchange Board ofIndia (Change In Conditions Of Registration Of Certain Intermediaries) (Amendment) Regulations,2016 w.e.f. 08-12-2016. Prior to omission, the regulation was Page 12 of 31 Any applicant, whose application for grant of a certificate of permanent registration has been refused by the Board, on and from the date of receipt of the communication, shall not carry on any activity as a merchant banker:
Provided that the Board may, in the interest of investors in the securities market, permit the merchant banker to carry on activities undertaken prior to the receipt of the intimation of refusal subject to such condition as the Board may specify.]
Payment of fees and the consequences of failure to pay fee.