(1) The Board may require the applicant to furnish further information or clarification regarding matters relevant to underwriting to consider the application for grant of a certificate.
16[(2) If the Board, on receipt of further information, is of the opinion that the information so furnished is not sufficient to decide on the application and seeking further information through correspondence is likely to delay the matter, it may require the applicant or its principal officer to appear before the Board in order to give an opportunity to the applicant to give further clarifications on the application made under 17[regulation 3A].]
Application to conform to the requirements.
5. Subject to the provisions of 18[sub-regulation (2) of regulation 3A], any application, which is not complete in all respects and does not conform to the instructions specified in the form, shall be rejected:
Provided that before rejecting any such application, the applicant shall be given an opportunity to remove within 19[one month] such objections as may be indicated by the Board :
11 The word “initial” was omitted by the Securities and Exchange Board of India (Change In Conditions Of Registration Of Certain Intermediaries) (Amendment) Regulations, 2016 w.e.f. 08-12-2016.
12 Regulation ‘3’ renumbered as ‘3A’, ibid.
13 Inserted by the SEBI (Underwriters) (Amendment) Regulations, 2011, w.e.f. 5-7-2011.
14 The word “initial” was omitted by the Securities and Exchange Board of India (Change In Conditions Of Registration Of Certain Intermediaries) (Amendment) Regulations, 2016 w.e.f. 08-12-2016.
15 Inserted by the SEBI (Underwriters) (Amendment) Regulations, 2006, w.e.f. 7-9-2006.
16 Substituted by SEBI (Underwriters) (Amendment) Regulations, 1997, w.e.f. 17-01-1997. Prior to substitution, it read as under:
“The applicant or, its principal officer shall, if so required, appear before the Board for personal representation.” 17 Substituted for the words “Regulation 3” by SEBI (Underwriters)(Amendment) Regulations, 2006, w.e.f.
7-9-2006.
18 Substituted for the words “sub-regulation (2) of Regulation 3” by the SEBI (Underwriters) (Amendment) Regulations, 2006, w.e.f. 7-9-2006.
19 Substituted for the words “the time specified” by the SEBI (Underwriters) (Amendment) Regulations, 1997, w.e.f. 17-01-1997.
Page 7 of 26 20[Provided further that the Board may, on sufficient reasons being shown, extend the time by another one month in order to enable the applicant to comply with the requirements of the Board.]
Consideration of application.
6. The Board shall take into account for considering the grant of a certificate, all matters which are relevant to or relating to underwriting and in particular the following, namely, whether the applicant—
(a) has the necessary infrastructure, like adequate office space, equipments and manpower to effectively discharge his activities;
(b) has any past experience in the underwriting or has in his employment minimum two persons who had the experience in underwriting;
(c) or any person, directly or indirectly connected with the applicant has not been granted registration by the Board under the Act.
21[Explanation.—For the purposes of this clause the Board shall take into account whether a previous application for a certificate of any person directly or indirectly connected with the applicant has been rejected by the Board or any disciplinary action has been taken against such person under the Act or any of the rules or any of the regulations made under the Act;]
(d) fulfils the capital adequacy requirements specified in regulation 7;
(e) or any of its director, partner or principal officer is or has at any time been convicted for any offence involving moral turpitude or has been found guilty of any economic offence;
22[(f) is a fit and proper person.]
23[Criteria for fit and proper person.
6A. For the purpose of determining whether an applicant or the underwriter 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 adequacy requirement.
20 Inserted, ibid.
21 Inserted, ibid.
22 Inserted by the SEBI (Underwriters) (Amendment) Regulations, 1998, w.e.f. 5-01-1998.
23 Substituted by the SEBI (Intermediaries) Regulations, 2008, w.e.f. 26-05-2008. Prior to substitution, Regulation 6A as inserted by the SEBI (Criteria for Fit and Proper Person) Regulations, 2004, w.e.f. 10-03- 2004, read as under:
“6A. Applicability of Securities and Exchange Board of India (Criteria for Fit and Proper Person) Regulations, 2004.- The Provisions of the Securities and Exchange Board of India (Criteria for Fit and Proper Person) Regulations, 2004 shall, as far as may be, apply to all applicants or underwriters under these regulations.” Page 8 of 26