Section 2 in The Central Electricity Regulatory Commission (Procedure, Terms and Conditions for Grant of Trading Licence and other Related Matters) Regulations, 2009
2. Definitions and Interpretation
- In these regulations, unless the context or subject-matter, otherwise requires,-(a)"Act" means the Electricity Act, 2003, (36 of 2003);(b)"applicant" means a person who has made an application to the Commission for grant of licence;(c)"associate" in relation to an applicant or the licensee, as the case may be, means the person-(i)who owns or controls shares carrying not less than twenty-six percent of the voting rights of the applicant or the licensee, as the case may be; or(ii)in respect of whom the applicant or the licensee, as the case may be, owns or controls shares carrying not less than twenty-six percent of the voting rights; or(iii)who is under the same management as the applicant, or the licensee as the case may be.Explanation. - For the purpose of this sub-clause, the applicant or the licensee, as the case may be, and the person concerned shall be deemed to be under the same management:(i)if the managing director or manager of the applicant or the licensee, as the case may be, is the managing director or manager of such person; or(ii)if a majority of the directors of the applicant or the licensee, as the case may be, constitute or any time within six months immediately preceding, constituted a majority of the directors of such person; or(iii)if not less than one third of the total voting power with respect to any matter relating to the applicant or the licensee, as the case may be, and such person is exercised or controlled by the same individual or body corporate; or(iv)if any of the directors of the applicant or the licensee, as the case may be, while holding the majority of shares of the applicant or the licensee as the case may be, also hold the majority of shares in such person.(d)"Commission" means the Central Electricity Regulatory Commission referred to in Section 76 of the Act;(e)"Conduct of Business Regulations" means the Central Electricity Regulatory Commission (Conduct of Business) Regulation, 1999, as amended from time to time and includes any statutory re-enactment thereof,(f)"current ratio" means ratio between the current assets and current liabilities, where(i)current assets include cash or cash equivalent of money, accounts receivables, inventory, marketable securities, and pre-paid expenses, and(ii)current liabilities includes sundry creditors, provisions and other liabilities to be discharged within a period of one year;(g)"economic offence" mean an offence to which the Economic Offences (Inapplicability of Limitation) Act, 1974 (12 of 1974), is applicable for tire time being;(h)"existing licensees" means the persons holding licence on the date of commencement of these regulations;(i)"fraud" has the same meaning as is assigned to it under Section 17 of the Indian Contract Act, 1872 (9 of 1872);(j)"Grid Code" means the Grid Code specified by the Commission under clause (h) of sub-section (1) of Section 79 of the Act;(k)"inter-State trading" means transfer of electricity from the territory of one State for re-sale to the territory of another State and includes electricity imported from any other country for re-sale in any State of India;(I)"licence" means a licence granted to any person by the Commission to undertake inter-State trading in electricity as an electricity trader;(m)"licensee" means a person who has been granted licence;(n)"liquidity ratio" means the ratio between the liquid assets and current liabilities, where(i)liquid assets include the current assets less inventory, and(ii)current liabilities include sundry creditors, provisions and other liabilities to be discharged within a period of one year,(o)"net worth" means aggregate value of the paid up equity capital and free reserves (excluding reserves created out of revaluation) reduced by the aggregate value of accumulated losses, deferred expenditure (including miscellaneous expenses) not written off and loans and advances to the associates;(p)"other business" means any business of the licensee other than the business of inter-State trading;(q)"promoter" with reference to a company means a person who has promoted and is actively associated with the management of the company or holds not less than twenty six percent of the share capital of such company;(r)"year" means a period of twelve months from 1st April of a calendar year to 31st March of the following calendar year.(2)Save as aforesaid and unless repugnant to the context or the subject matter otherwise requires, words and expressions used in these regulations and not defined, but defined in the Act, or the Grid Code shall have the meanings assigned to them respectively in the Act or the Grid Code.(3)The provisions of the General Clauses Act, 1897 (10 of 1897) as amended from time to time shall apply for the interpretation of these regulations as they apply for the interpretation of an Act of Parliament.
