Regulation 71 - Grant of provisional registration - Securities and Exchange Board of India (Collective Investment Schemes) Regulations, 1999

Grant of provisional registration 71. (1) The Board after being satisfied that the conditions specified in regulation 70 are fulfilled may grant provisional registration to the applicant subject to the following conditions, namely :- (a) the applicant shall get the existing 1 [collective investment scheme]s rated by a credit rating agency within 2 [two] year from the date of grant of provisional registration; (b) the applicant shall get the existing 3 [collective investment scheme]s audited by an auditor within a period of 4 [two] year from the date of grant of provisional registration; (c) the applicant shall get existing 5 [collective investment scheme]s appraised by an appraising agency within a period of 6 [two] year from the date of grant of provisional registration; (d) the applicant shall create a trust and appoint trustees in the manner specified in Chapter IV of these regulations within a period of 7 [two] years from the date of grant of provisional registration; (e) the applicant shall comply with accounting and valuation norms in respect of 8 [collective investment scheme]s floated before the commencement of these regulations as specified in Part II of the Ninth Schedule within a period of 9 [two] year from the date of provisional registration; (f) the applicant shall meet the minimum net worth of Rupees one crore within one year from the date of grant of provisional registration which shall be increased by Rupees one crore each within two years, three years, four years and five years from the date of grant of provisional registration; (g) the applicant shall not dispose of the 10 [collective investment scheme] property except for meeting obligations arising under the offer document of the 11 [collective investment scheme]; (h) the applicant shall comply with the conditions specified in regulation 11; (i) such other conditions which the Board may impose. (2) The applicant shall give a written undertaking to the Board to comply with the conditions specified in sub-regulation (1). (3) The applicant who has been considered eligible for the grant of provisional registration by the Board shall pay provisional registration fee as per the Second Schedule. (4) An applicant who after grant of provisional registration fails to comply with the conditions as specified in sub-regulation (1) and regulation 9 shall not be considered eligible for the grant of certificate of registration under regulation 10 and shall wind up the 12 [collective investment scheme] in the manner specified in regulation 73. **************** NOTES:- 1 ibid. 2 Word one in clause (a) of sub-regulation (1) of Regulation 71 is substituted by the Securities and Exchange Board of India (Collective Investment Schemes) (Amendment) Regulations, 2002, w.e.f, 17-01-2002. 3 Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014. 4 Word one in clause (b) of sub-regulation (1) of Regulation 71 is substituted by the Securities and Exchange Board of India (Collective Investment Schemes) (Amendment) Regulations, 2002, w.e.f, 17-01-2002. 5 Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014. 6 Word one in clause (c) of sub-regulation (1) of Regulation 71 is substituted by the Securities and Exchange Board of India (Collective Investment Schemes) (Amendment) Regulations, 2002, w.e.f, 17-01-2002. 7 Word one in clause (d) of sub-regulation (1) of Regulation 71 is substituted by the Securities and Exchange Board of India (Collective Investment Schemes) (Amendment) Regulations, 2002, w.e.f, 17-01-2002. 8 Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014. 9 Word one in clause (e) of sub-regulation (1) of Regulation 71 is substituted by the Securities and Exchange Board of India (Collective Investment Schemes) (Amendment) Regulations, 2002, w.e.f, 17-01-2002. 10 Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014. 11 ibid. 12 ibid.