(1) The capital adequacy requirement referred to in sub-regulation (d) of regulation 6 shall not be less than the net worth of rupees twenty lakhs.
24[(2) Notwithstanding anything contained in sub-regulation (1), every stockbroker, who acts as an underwriter shall fulfil the capital adequacy requirements specified by the stock exchange of which he is a member.]
Explanation: For the purposes of this regulation, “net worth” means,—
(a) in the case of an applicant being a proprietary concern or a firm or an association of persons or any body of individuals, the value of capital contributed to such business by the applicant and the free reserves of any kind belonging to the business of the applicant; and
(b) in the case of a body corporate, the value of the paid-up capital and the free reserves as disclosed in the books of account of the applicant at the time of making the application under sub-regulation (1) of regulation 3.
25[ 8. Grant of certificate of 26[***] registration.
(1) The Board, on being satisfied that the applicant is eligible, shall send an intimation to the applicant, within one month of such satisfaction, mentioning that it has been found eligible for grant of certificate of 27[***] registration and grant a certificate in Form B.
(2) 28[The certificate of registration granted under sub-regulation (1) shall be valid unless it is suspended or cancelled by the Board.]
(3) 29[The underwriter who 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) 24 Substituted by the SEBI (Underwriters) (Amendment) Regulations, 2002, w.e.f. 10-12-2002.
25 Substituted by the SEBI (Underwriters) (Amendment) Regulations, 2011, w.e.f. 5-7-2011. Prior to substitution, it read as under:
“Procedure for registration.
8. The Board on being satisfied that the applicant is eligible, shall send an intimation within one month of the such satisfaction to the applicant mentioning that he has been found eligible for the grant of certificate and grant a certificate in Form B subject to payment of fees as specified in regulation 12.” 26 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.
27 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.
28 Substituted 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. Prior to substitution subregulation (2) read as under:
“(2) The certificate of initial registration granted under sub-regulation (1) shall be valid for a period of five years from the date of its issue to the applicant.” 29 Substituted 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. Prior to substitution subregulation (3) read as under:
“(3) The underwriter who has already been granted a certificate of registration by the Board, prior to the commencement of the Securities and Exchange Board of India (Underwriters) (Amendment) Regulations 2011, and has not completed a period of three years, shall be deemed to have been granted a certificate of initial registration for a period of five years from the date of its certificate of registration, subject to payment of fee for the remaining period of two years, as prescribed under Schedule II of these regulations.” Page 9 of 26 (Amendment) Regulations, 2016 shall be deemed to have been granted a certificate of registration, in terms of sub-regulation (1).]
(4) The grant of certificate of 30[***] registration shall be subject to payment of fees specified in regulation 12.]
8A. 31[***]
9. 32[***] 33[Conditions of registration.
30 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.
31 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. Prior to omission regulation 8 A as inserted by the SEBI (Underwriters) (Amendment) Regulations, 2011, w.e.f. 5-7-2011 read as under:
“8A. Grant of certificate of permanent registration.
(1) The underwriter who has been granted or deemed to have been granted a certificate of initial registration under regulation 8, may, three months before the expiry of the period of certificate of initial registration, make an application for grant of certificate of permanent registration in Form A.
(2) The underwriter who has already been granted a certificate of registration by the Board and has completed a period of five years, on the date of commencement of the Securities and Exchange Board of India (Underwriters) (Amendment) Regulations, 2011, may, three months before the expiry of validity of certificate of registration or before, make an application for grant of a certificate of permanent registration in Form A.
(3) An application under sub-regulation (1) or sub-regulation (2) shall be accompanied by a non-refundable application fee as specified in Schedule II of these regulations.
(4) The application for grant of a certificate of permanent registration shall be accompanied by details of the changes that have taken place in the information that was submitted to the Board while seeking initial registration or renewal, as the case may be, and a declaration stating that no changes other than those as mentioned in such details have taken place.
(5) The application for permanent registration made under sub regulation (1) or (2) shall be dealt with in the same manner as if it were a fresh application for grant of a certificate of initial registration.
(6) The Board, on being satisfied that the applicant is eligible, shall grant a certificate of permanent registration in Form B and shall send an intimation to the applicant.
(7) The grant of certificate of permanent registration shall be subject to payment of fee specified in Schedule II of these regulations.” 32 Omitted by the SEBI (Underwriters) (Amendment) Regulations, 2011, w.e.f. 5-7-2011. Prior to omission, it read as under:
Renewal of certificate.