(1) The Board may direct the applicant to furnish such further informationor clarification as may be required by it, for the purpose of processing theapplication.
(2) The Board, if it so desires, may ask the applicant or its authorized representative to appear before the Board for personal representation inconnection with the grant of a certificate.
Conditions for eligibility
9. The Board shall not consider an application for the grant of a certificateunless the applicant satisfies the following conditions, namely:— a) the applicant is set up and registered as a company under theCompanies Act, 1956;
b) the applicant has, in its Memorandum of Association specifiedthe managing of collective investment scheme as one of its mainobjects;
c) the applicant has a net worth of not less than rupees fivecrores:
Provided that at the time of making the application the applicantshall have a minimum net worth of rupees three crores which shallbe increased to rupees five crores within three years from the dateof grant of registration;
d) the applicant is a fit and proper person for the grant of suchcertificate;
e) the applicant has adequate infrastructure to enable it to operatecollective investment scheme in accordance with the provision ofthese regulations;
f) the directors or key personnel of the applicant shall consist ofpersons of honesty and integrity having adequate professionalexperience in related field and have not been convicted for anoffence involving moral turpitude or for any economic offence or forthe violation of any securities laws;
g) at least fifty per cent of the directors of such CollectiveInvestment Management Company shall consist of persons who areindependent and are not directly or indirectly associated with thepersons who have control over the Collective InvestmentManagement Company;
h) no person, directly or indirectly connected with the applicanthas in the past been refused registration by the Board under theAct.
Explanation: For the purposes of this clause, the Board shall takeinto account whether the previous application for a certificate of anyperson, directly or indirectly, connected with the applicant has beenrejected by the Board or any disciplinary action has been takenagainst such person under the Act or any of the rules or any of theregulations made under the Act.
(i) at least one of the directors, on the Board of the CollectiveInvestment Management Company, who is not subject to retirement,is a representative of the trustee;
(j) the Collective Investment Management Company is not atrustee of any collective investment scheme;
(k) in case the applicant is an existing collective investmentscheme, it complies with the provisions of Chapter IX of theseregulations.
16 [Criteria for fit and proper person
9A. For the purpose of determining whether an applicant or the collectiveinvestment management company is a fit and proper person, the Board maytake into account the criteria specified in Schedule II of the Securities andExchange Board of India (Intermediaries) Regulations, 2008.]
Grant of Certificate