(1) The Board may, on receipt of an application and on being satisfiedthat the applicant complies with the requirements specified in regulation 9,call upon the applicant to pay registration fee as specified in the SecondSchedule.
(2) On receipt of registration fee, the Board shall grant a certificate in Form B,on such terms and conditions as are in the interest of investors and as maybe specified by the Board.
Terms and conditions to be complied with
11. The certificate granted under regulation 10 shall be subject to thefollowing conditions, namely:—
(a) any director of the Collective Investment ManagementCompany shall not be a director in any other Collective InvestmentManagement Company unless such person is an independentdirector referred to in clause (g) of regulation 9 and approval of theboard of Collective Investment Management Companies of whichsuch person is an independent director, has been obtained;
(b) the Collective Investment Management Company shallforthwith inform the Board of any material change in the information or particulars previously furnished, which have a bearing on the certificate granted by it;
16Substituted by the SEBI (Intermediaries) Regulations, 2008, w.e.f. 26-05-2008. Prior to its substitutionRegulation 9A as inserted by the SEBI (Criteria for Fit and Proper Person) Regulations, 2004, w.e.f. 10-03-2004, read as under:
―9A. Applicability of the Securities and Exchange Board of India (Criteria for Fit and Proper Person)Regulations, 2004. – The Provisions of the Securities and Exchange Board of India (Criteria for Fit andProper Person) Regulations, 2004, shall, as far as may be, apply to all applicants or the CollectiveInvestment Management Companies under these regulations.‖
(c) appointment of a director of a Collective Investment Management Company shall be made with the prior approval of the trustee;
(d) the Collective Investment Management Company shall comply with provisions of the Act and these regulations;
(e) no change in the controlling interest of the Collective Investment Management Company shall be made without obtaining prior approval of the Board, the trustee and the unit holders holding at least one-half of the nominal value of the unit capital of the 17 [collective investment scheme];
(f) the Collective Investment Management Company shall take adequate steps to redress the grievances of the investors within one month from the date of receipt of the complaint from the aggrieved investor;
18 [(g) the Collective Investment Management Company shall enter into an agreement with a depository for dematerialization of the units of collective investment scheme proposed to be issued;
(h) all monies payable towards subscription of units of collective investment scheme shall be paid through cheque or demand draft or through any other banking channel, but not by cash;
(i) the Collective Investment Management Company shall comply with KYC (know your client) norms as specified by the Board.]
Procedure where registration is not granted