(1) For the purpose of the grant of a certificate the Board shall take into account all matters which are relevant to the activities of a 24[custodian] and in particular, whether:—
(a) the applicant fulfils the capital requirement in accordance with regulation 7; (b) the applicant has the necessary infrastructure, including adequate office space, vaults for safe custody of securities and computer systems capability, required to effectively discharge his activities as 25[custodian];
26[(ba) the applicant has the requisite approvals under any law for the time being in force, in connection with providing custodial services in respect of 27[goods of a client or] gold or gold related instruments of a mutual fund 28[or title deeds of a real estate assets held by a real estate mutual funds scheme] ,where applicable];
22 Substituted ibid for the words “custodian of securities”.
23 Substituted for the words “custodian of securities” by the Securities and Exchange Board of India (Custodian of Securities) (Amendment) Regulations, 2018, w.e.f. 1-1-2019.
24 Substituted ibid for the words “custodian of securities”.
25 Substituted for the words “custodian of securities” by the Securities and Exchange Board of India (Custodian of Securities) (Amendment) Regulations, 2018, w.e.f. 1-1-2019.
26 Inserted by the SEBI (Custodian of Securities) (Amendment) Regulations, 2006, w.e.f. 12-1-2006.
27 Inserted by the Securities and Exchange Board of India (Custodian of Securities) (Amendment) Regulations, 2018, w.e.f. 1-1-2019.
28 Inserted by the SEBI (Custodian of Securities) (Amendment) Regulations, 2008, w.e.f. 4-7-2008.
(c) the applicant has in his employment adequate and competent persons who have the experience, capacity and ability of managing the business of the 29[custodian];
(d) the applicant has prepared a complete manual, setting out the systems and procedures to be followed by him for the effective and efficient discharge of his functions and the arms length relationships to be maintained with the other businesses, if any, of the applicant;
(e) the applicant is a person who has been refused a certificate by the Board or whose certificate has been cancelled by the Board;
(f) the applicant, his director, his principal officer or any of his employees is involved in any litigation connected with the securities market;
(g) the applicant, his director, his principal officer or any of his employees has at any time been convicted of any offence involving moral turpitude or of any economic offence;
30[(gg)the applicant is a fit and proper person;] and
(h) the grant of certificate is in the interest of investors.
(2) Notwithstanding anything contained in sub-regulation (1) the Board shall not consider an application made under regulation 3 unless the applicant is a body corporate.
31[Criteria for fit and proper person.
6A. For the purpose of determining whether an applicant or the 32[custodian] is a fit and proper person the Board may take into account the criteria specified in Schedule II of the Securities and Exchange Board of India (Intermediaries) Regulations, 2008.]
Capital requirement.