Section 6 in The Securities And Exchange Board Of India (Depositories And Participants) Regulations, 1996
6. Consideration of application for grant of certificate of registration.-
The Board shall not consider an application under regulation 3, unless the sponsor belongs to one of the following categories, namely:-(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 recognised stock exchange within the meaning of clause (j) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);(v)a body corporate engaged in providing financial services where not less than seventy five per cent. of the equity capital is held by any of the institutions mentioned in sub-clause (i), (ii), (iii) or (iv) jointly or severally;(vi)a body corporate constituted or recognised under any law for the time being in force in a foreign country for providing custodial, clearing or settlement services in the securities market and approved by the Central Government; or(vii)an institution engaged in providing financial services established outside India and approved by the Central Government;(viii)[ the applicant is a fit and proper person.] [Inserted by S.O. 18(E), dated 5.1.1998]
