Regulation 4 - Eligibility criteria - Securities and Exchange Board of India (Self Regulatory Organisations) Regulations, 2004

Eligibility criteria. 4. The Board shall not consider an application for grant of a certificate under regulation 3 unless the applicant satisfies the following conditions, namely:- (a) the applicant is a company which has been granted license under section 25 of Companies Act, 1956; (b) the applicant has, in its memorandum of association, specified admission of members and discharging the functions of Self Regulatory Organization as one of its main objects; (c) the applicant has a minimum networth of one crore rupees; (d) the applicant has adequate infrastructure, to enable it to discharge its functions as a Self Regulatory Organization in accordance with the provisions of the Act and these regulations; (e) the applicant referred to in regulation 3 and its directors have the professional competence, financial soundness and general reputation of fairness and integrity to the satisfaction of the Board; (f) neither the applicant, nor any director of the applicant is involved in any legal proceeding connected with the securities market, which may have an adverse impact on the interests of the investors; (g) neither the applicant, nor any director has at any time in the past been convicted of any offence involving moral turpitude or any economic offence; (h) the applicant has, in its employment, persons having adequate professional and other relevant experience to the satisfaction of the Board; 1 [(i) 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; ] (j) grant of certificate to the applicant is in the interest of investors and the securities market. ************** NOTES:- 1 Substituted by the SEBI (Self Regulatory Organisations) (Second Amendment) Regulations, 2013 w.e.f. 18.11.2013. Prior to its substitution, clause (i) read as under: (i) the applicant, in all other respects, is a fit and proper person for the grant of a certificate;