Section 35 in Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018
35. Consideration of application for grant of certificate of registration.
- For the purpose of grant of certificate of registration, the Board shall take into account all matters which are relevant to or relating to the efficient and orderly functioning of a participant and in particular, whether the applicant complies with the following requirements, namely : -(a)the applicant belongs to one of the following categories, -(i)a public financial institution as defined in section 2(72) of the Companies Act, 2013;(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 State Financial Corporation established under the provisions of section 3 of the State Financial Corporations Act, 1951 (63 of 1951);(v)an institution engaged in providing financial services, promoted by any of the institutions mentioned in sub-clauses (i), (ii), (iii) and (iv), jointly or severally;(vi)a custodian of securities who has been granted a certificate of registration by the Board under sub-section (1A) of section 12 of the Act;(vii)a clearing corporation or a clearing house of a stock exchange;(viii)a stock broker who has been granted a certificate of registration by the Board under sub-section (1) of section 12 of the Act :Provided that the stock broker shall have a minimum net worth of rupees fifty lakhs and the aggregate value of portfolio of securities of the beneficial owners held in dematerialised form in a depository through him, shall not exceed hundred times of the net worth of the stock broker:Provided further that if the stock broker seeks to act as a participant in more than one depository, he shall comply with the criteria specified in the first proviso separately for each such depository:Provided also that where the stock broker has a minimum net worth of rupees ten crore, the limits on the aggregate value of the portfolio of securities of the beneficial owners held in dematerialized form in a depository through him shall not be applicable;(ix)a non-banking finance company, having a net worth of not less than rupees fifty lakhs:Provided that such company shall act as a participant only on behalf of itself and not on behalf of any other person:Provided further that a non-banking finance company may act as a participant on behalf of any other person, if it has a net worth of rupees fifty crore in addition to the net worth specified by any other authority;(x)a registrar to an issue or share transfer agent who has a minimum net worth of rupees ten crores and who has been granted a certificate of registration by the Board under sub-section (1) of section 12 of the Act;(b)the applicant is eligible to be admitted as a participant of the depository through which it has made the application to the Board;(c)the applicant has adequate infrastructure, systems, safeguards and trained staff to carry on activity as a participant;(d)the applicant is a fit and proper person; and(e)the grant of certificate of registration is in the interests of investors in the securities market.
