Regulation 7 - Consideration of application - Securities and Exchange Board of India (Intermediaries) Regulations, 2008

Consideration of application. 7. (1) For considering the eligibility of the applicant and grant of certificate to such applicant, the Board shall take into account all matters which it deems relevant to the activities in the securities market, including but not limited to the following - (a) whether the applicant or any of its associates have in the past been refused certificate by the Board and if so, the ground for such refusal; (b) whether the applicant, its directors or partners, or trustees, as the case may be or its principal officer is involved in any pending litigation connected with the securities market which has an adverse bearing on the business of the applicant or on development or functioning of the securities markets; (c) whether the applicant satisfies the eligibility criteria and other requirements as specified in these regulations and the relevant regulations; (d) whether the grant of a certificate to the applicant is in the interest of the investors and the development of the securities market. (2) Any application for grant of certificate:- (a) which is not complete in all respects and does not conform to the requirements in Form A and the requirements specified in the relevant regulation; (b) which does not contain such additional information as required by the Board; (c) which is incorrect, false or misleading in nature; (d) where the applicant is not in compliance with the eligibility requirements as set out under these regulations or the relevant regulations; (e) where the applicant is not a fit and proper person' as stated in Schedule II; (f) where the principal officer does not have the requisite qualification or experience as required under the relevant regulations; shall be rejected by the Board for reasons to be recorded by the Board in writing. (3) Before rejecting an application, the applicant shall be given an opportunity in writing to make good the deficiencies within the time specified by the Board, for the purpose: Provided that where an application is rejected for the reason that it contains false or misleading information, no such opportunity may be given and the applicant shall not make any application for grant of certificate under these regulations or any other regulations for a period of one year from the date of such rejection.