Regulation 5 - Grant of recognition as a Self Regulatory Organization - Securities and Exchange Board of India (Self Regulatory Organisations) Regulations, 2004

Grant of recognition as a Self Regulatory Organization. 5. (1) If the Board is satisfied, after making such inquiry as may be necessary in this behalf and after obtaining such further information, if any, as it may require, - (a) that the articles and governing norms of the applicant applying for recognition are in conformity with such conditions as may be specified by the Board; (b) that the applicant is willing to comply with any other conditions which the Board may impose for the purpose of carrying out the objects of these Regulations; and, (c) that it would be in the interest of the trade and also in the public interest to grant recognition to the applicant as a Self Regulatory Organization; the Board may grant certificate of recognition to the applicant as a Self Regulatory Organization in Form B1 of the First Schedule subject to such terms and conditions as the Board may deem fit and appropriate. (2) The conditions which the Board may specify under sub-regulation (1) for the grant of recognition to the applicant as a Self Regulatory Organization may include, among other matters, conditions relating to, - (i) the qualification for membership of the Self Regulatory Organization; (ii) the representation of the Board in the Board of Directors of the Self Regulatory Organization by such number of directors not exceeding four as the Board may nominate in this behalf; and (iii) the maintenance of accounts of members and their audit by chartered accountants whenever such audit is required by the Board. (3) No articles of Self Regulatory Organization relating to any of the matters specified in clauses (a), (b) and (c) of sub-regulation (2) of Regulation 3 shall be amended except with the prior written approval of the Board.