Regulation 12 - Eligibility criteria of designated depository participant - Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014

Eligibility criteria of designated depository participant. 12. (1)The Board shall not consider an application for the grant of approval as designated depository participant unless the applicant satisfies the following conditions, namely: (a) the applicant is a participant registered with the Board; (b) the applicant is a custodian of securities registered with the Board; (c) the applicant is an Authorized Dealer Category-1 bank authorized by Reserve Bank of India; (d) the applicant has multinational presence either through its branches or through agency relationships with intermediaries regulated in their respective home jurisdictions; (e) the applicant has systems and procedures to comply with the requirements of Financial Action Task Force Standards, Prevention of Money Laundering Act, 2002, Rules prescribed thereunder and the circulars issued from time to time by the Board; (f) the applicant is a fit and proper person based on the criteria specified in Schedule II of the Securities and Exchange Board of India (Intermediaries) Regulations, 2008; and (g) any other criteria specified by the Board from time to time. (2) Notwithstanding anything contained in sub-regulation (1) of this regulation, the Board may consider an application from a global bank, regulated in its home jurisdiction, for grant of approval to act as designated depository participant, if it is satisfied that it has sufficient experience in providing custodial services and the grant of such approval is in the interest of the development of the securities market: Provided that such global bank shall be registered with the Board as a participant, custodian of securities, and shall have tie up with Authorized Dealer Category-1 bank.