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Securities And Exchange Board Of India - Section

Section 19 in The Securities And Exchange Board Of India (Depositories And Participants) Regulations, 1996

19. Consideration of application for grant of certificate of registration.-

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 4A of the Companies Act, 1956 (1 of 1956);
(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 clause (i), (ii), (iii), (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 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 50 lakhs and the aggregate value of the portfolio of securities of the beneficial owners held in dematerialised form in a depository through him, shall not exceed the following limits :] [Substituted by S.O. 357(E), dated 20.5.1999]
Net worth (in lakhs) Aggregate Value of Portfolio of Securities
50 upto(including) 750  
Above 750 and upto 5000 [100 times of the net worth of the stock broker] [Substituted by S.O. 775(E), dated 21.9.1999]
[Provided further that where the stockbroker 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:] [Substituted by S.O. 775(E), dated 21.9.1999]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; or
(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.
(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; and
(cc)[ the applicant is a fit and proper person.] [Inserted by S.O. 18(E), dated 5.1.1998]
(d)the grant of certificate of registration is in the interests of investors in the securities market.
(x)[ a registrar to an issue or share transfer agent who has a minimum net worth of [Rupees ten crores] [Inserted by S.O. 357(E), dated 20.5.1999] and who has been granted a certificate of registration by the Board under sub-section (1) of Section 12 of the Act:
[***] [Omitted by S.O. 775(E), dated 21.9.1999]]