(1) Investment advisers which are body corporate shall have a net worth of not less than twenty five lakh rupees.
Explanation.─ For the purposes of this regulation, "networth" means the aggregate value of paid up share capital plus free reserves (excluding reserves created out of revaluation) reduced by the aggregate value of accumulated losses, deferred expenditure not written off, including miscellaneous expenses not written off, and capital adequacy requirement for other services offered by the advisers in accordance with the applicable rules and regulations.
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(2) Investment advisers who are individuals or partnership firms shall have net tangible assets of value not less than rupees onelakh:
Provided that existing investment advisers shall comply with the capital adequacy requirement within one year from the date of commencement of these regulations.
Grant of certificate of registration.
9. The Board on being satisfied that the applicant complies with the requirements specified in regulation 6 shall send intimation to the applicant and on receipt of the payment of registration1[***] fees as specified in Second Schedule, grant certificate of registration in Form B under First Schedule, subject to such terms and conditions as the Board may deem fit and appropriate.
Period of validity of certificate.
10. The certificate of registration granted under regulation 9 shall be valid 2[till it is suspended or cancelled by the Board.]
Renewal of certificate.
11. 3[The investment adviser which has already been granted certificate of registration by the Board, prior to the commencement of the Securities and Exchange Board of India (Change in Conditions of Registration of Certain Intermediaries)(Amendment) Regulations, 2016 shall be deemed to have been granted a certificate of registration, in terms of sub-regulation (1).]
Procedure where registration is refused.