Section 6 in Securities And Exchange Board Of India (Merchant Bankers) Regulations, 1992
6. Consideration of application.-
The Board shall take into account for considering the grant of a certificate, all matters, which are relevant to the activities relating to merchant banker and in particular the applicant complies with the following requirements, namely: -(a)[ the applicant shall be a body corporate other than a non-banking financial company as defined under clause (f) of section 45-I of the Reserve Bank of India Act, 1934, (2 of 1934) as amended from time to time,] [Inserted by S.O. 837(7), dated 9.12.1997][Provided that the merchant banker who has been granted registration by the Reserve Bank of India to act as a Primary or Satellite dealer may carry on such activity subject to the condition that it shall not accept or hold public deposit] [Inserted by S.O. 1119(E), dated 17.11.1999](aa)the applicant has the necessary infrastructure like adequate office space, equipments, and manpower to effectively discharge his activities;(b)the applicant has in his employment minimum of two persons who have the experience to conduct the business of the merchant banker;(c)a person directly or indirectly connected with the applicant has not been granted registration by the Board;Explanation:- For the purposes of this clause the expression "directly or indirectly connected" means any person being an associate, subsidiary, inter-connected or group Company of the applicant in case of the applicant being a body corporate.(d)the applicant fulfils the capital adequacy requirement specified in regulation 7;(e)the applicant, his partner, director or principal officer is not involved in any litigation connected with the securities market which has an adverse bearing on the business of the applicant;(f)the applicant, his director, partner or principal officer has not at any time been convicted for any offence involving moral turpitude or has been found guilty of any economic offence;(g)the applicant has the professional qualification from an institution recognised by the Government in finance, law or business management;(gg)[ the applicant is a fit and proper person,] [Inserted by S.O. 837(E), dated 9.12.1997](h)grant of certificate to the applicant is in the interest of investors.
