Regulation 70 - Consideration of application for grant of provisional registration - Securities and Exchange Board of India (Collective Investment Schemes) Regulations, 1999

Consideration of application for grant of provisional registration 70. (1) The applicant for the purpose of being considered eligible for the grant of provisional registration shall satisfy the Board that- (a) the 1 [collective investment scheme]s of the applicant are in the nature of collective investment schemes; (b) the affairs of the applicant are not being conducted in a manner detrimental to the interest of existing investors; (c) the applicant has at least 50% independent directors at the time of making the application. Explanation :- Independent directors shall mean directors who are not associates of the persons operating the existing collective investment scheme; (d) any person, directly or indirectly connected with it has not been granted registration by the Board under the Act. (2) The Board for the purposes of grant of provisional registration may, inter alia, inspect the 2 [collective investment scheme]s, books of account, records and documents of the applicant. (3) The Board shall recover from the applicant such expenses including fees paid to the auditor, appraising agency as may be incurred by it for the purposes of inspecting the 3 [collective investment scheme]s, books of account, records and documents of the applicant. (4) The Board on being satisfied that the requirements specified in sub-regulation (1) are not fulfilled may reject the application and the applicant thereupon shall wind up its existing 4 [collective investment scheme] (s) in the manner specified in regulation 73. ************** NOTES:- 1 ibid. 2 Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014. 3 ibid. 4 ibid.