(1) The Board may require the applicant, or the depository to which the applicant is to be admitted as a participant, to furnish such further information or clarification as may be considered necessary for the grant of a certificate of registration to the applicant.
(2) The applicant or his authorised representative shall, if so required, appear before the Board for personal representation in connection with the grant of a certificate of registration.
Consideration of application for grant of certificate of registration
35. For the purpose of grant of certificate of registration, the Board shall take into account all matters which are relevant to or relating to the efficient and orderly functioning of a participant and in particular, whether the applicant complies with the following requirements, namely :—
(a) the applicant belongs to one of the following categories,—
(i) a public financial institution as defined in section 2(72) of the Companies Act, 2013;
(ii) a bank included for the time being in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934);
(iii) a foreign bank operating in India with the approval of the Reserve Bank of India;
(iv) a State Financial Corporation established under the provisions of section 3 of the State Financial Corporations Act, 1951 (63 of 1951);
(v) an institution engaged in providing financial services, promoted by any of the institutions mentioned in sub-clauses (i), (ii), (iii) and (iv), jointly or severally;
(vi) a custodian of securities who has been granted a certificate of registration by the Board under sub-section (1A) of section 12 of the Act;
(vii) a clearing corporation or a clearing house of a stock exchange;
(viii) a stock broker who has been granted a certificate of registration by the Board under sub-section (1) of section 12 of the Act :
Provided that the stock broker shall have a minimum net worth of rupees fifty lakhs and the aggregate value of portfolio of securities of the beneficial owners held in dematerialised form in a depository through him, shall not exceed hundred times of the net worth of the stock broker:
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Provided further that if the stock broker seeks to act as a participant in more than one depository, he shall comply with the criteria specified in the first proviso separately for each such depository:
Provided also that where the stock broker has a minimum net worth of rupees ten crore, the limits on the aggregate value of the portfolio of securities of the beneficial owners held in dematerialized form in a depository through him shall not be applicable;
(ix) a non-banking finance company, having a net worth of not less than rupees fifty lakhs:
Provided that such company shall act as a participant only on behalf of itself and not on behalf of any other person:
Provided further that a non-banking finance company may act as a participant on behalf of any other person, if it has a net worth of rupees fifty crore in addition to the net worth specified by any other authority;
(x) a registrar to an issue or share transfer agent who has a minimum net worth of rupees ten crores and who has been granted a certificate of registration by the Board under sub-section (1) of section 12 of the Act;
(b) the applicant is eligible to be admitted as a participant of the depository through which it has made the application to the Board;
(c) the applicant has adequate infrastructure, systems, safeguards and trained staff to carry on activity as a participant;
(d) the applicant is a fit and proper person; and
(e) the grant of certificate of registration is in the interests of investors in the securities market.
Grant of certificate of registration