(1) Aresearch analyst who is individual or partnership firm shall have net tangible assets of value not less than one lakhrupees.
(2) Aresearch analyst who is body corporate or limited liability partnership firm shall have a networth of not less than twenty five lakh rupees.
(3) All existing research analysts shall comply with the capital adequacy requirement within one year from the date of commencement of these regulations.
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.
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 registration 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 1[till it is suspended or cancelled by the Board].
1 Substituted for the words “for a period of five years from the date of its issue” vide the Securities andExchange Board ofIndia (Change In Conditions Of Registration Of Certain Intermediaries) (Amendment) Regulations,2016 w.e.f. 08-12-2016.
Page 11 of 35 Renewal of certificate.
2[11. The research analyst who has already been granted certificate of registration by the Board, prior to the commencement of the Securities and Exchange Board of India (Research Analysts) (Amendment) Regulations, 2016 shall be deemed to have been granted a certificate of registration, subject to payment of fee, as prescribed in Schedule II of these regulations.]
Procedure where registration is refused.