Securities And Exchange Board Of India - Subsection
Section 7(2) in Securities and Exchange Board of India (Underwriters) Regulations, 1993
(2)Notwithstanding anything contained in sub-regulation (1),(a)every stock-broker, who acts as an underwriter shall fulfill the capital adequacy requirements specified by the stock exchange of which he is a member.(b)every merchant banker, who acts as an underwriter shall fulfil the capital adequancy requirements specified in regulation of the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992.Explanation:- For the purposes of this regulation, "networth" 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; andb. in the case of a body corporate, the value of the paid-up capital and the free reserves as disclosed in the books of accounts of the applicant at the time of making the application under sub-regulation (1) of regulation 3.
