Section 6 in Securities and Exchange Board of India {KYC (Know Your Client) Registration Agency} Regulations, 2011
6. Consideration of application for grant of certificate of initial registration.
(1)The Board shall not consider an application, unless the applicant is a fit and proper person to the satisfaction of the Board and belongs to one of the following categories, namely:(a)a wholly owned subsidiary of a recognized stock exchange, having nation-wide network of trading terminals, or;(b)a wholly owned subsidiary of a depository or any other intermediary registered with the Board or;(c)a wholly owned subsidiary of a Self Regulatory Organization (SRO) registered under SEBI (Self Regulatory Organization) Regulations, 2004,Provided that any conflict of interest does not exist between the role of the applicant as KRA and other commercial activities of the applicant, its associates and group companies.Provided further that the applicant shall have to satisfy to the Board about the organizational capabilities, technology and systems and safeguards for maintaining data privacy and preventing unauthorized sharing of data.Notwithstanding the aforementioned, the Board shall have the power to examine any possible case of conflict of interest in applications.(2)The applicant as mentioned in sub regulation (a) to (c) of regulation 6(1) above shall have a net worth of at least Rs 25 crore on a continuous basis.
