Regulation 6 - Consideration of application for grant of certificate - Securities and Exchange Board of India (Custodian) Regulations, 1996

Consideration of application for grant of certificate 6. (1) For the purpose of the grant of a certificate the Board shall take into account all matters which are relevant to the activities of a 4 [ custodian ] and in particular, whether:- (a) the applicant fulfils the capital requirement in accordance with regulation 7; (b) the applicant has the necessary infrastructure, including adequate office space, vaults for safe custody of securities and computer systems capability, required to effectively discharge his activities as 4 [ custodian ] ; 1 [(ba) the applicant has the requisite approvals under any law for the time being in force, in connection with providing custodial services in respect of 5 [ goods of a client or ] 6 [ gold or gold related instruments or silver or silver related instruments held by a mutual fund ] 2 [or title deeds of a real estate assets held by a real estate mutual funds scheme] ,where applicable]; (c) the applicant has in his employment adequate and competent persons who have the experience, capacity and ability of managing the business of the 4 [ custodian ] ; (d) the applicant has prepared a complete manual, setting out the systems and procedures to be followed by him for the effective and efficient discharge of his functions and the arms length relationships to be maintained with the other businesses, if any, of the applicant; (e) the applicant is a person who has been refused a certificate by the Board or whose certificate has been cancelled by the Board; (f) the applicant, his director, his principal officer or any of his employees is involved in any litigation connected with the securities market; (g) the applicant, his director, his principal officer or any of his employees has at any time been convicted of any offence involving moral turpitude or of any economic offence; 3 [(gg) the applicant is a fit and proper person;] and (h) the grant of certificate is in the interest of investors. (2) Notwithstanding anything contained in sub-regulation (1) the Board shall not consider an application made under regulation 3 unless the applicant is a body corporate. ************ NOTES:- 1 Inserted by the SEBI (Custodian of Securities) (Amendment) Regulations, 2006, w.e.f. 12-1-2006. 2 Inserted by the SEBI (Custodian of Securities) (Amendment) Regulations, 2008, w.e.f. 4-7-2008. 3 Inserted by the SEBI (Custodian of Securities) (Amendment) Regulations, 1998, w.e.f. 5-1-1998. 4. Substituted vide NOTIFICATION No. SEBI/LAD-NRO/GN/2019/01 dated 01-01-2019 before it was read as custodian of securities 5. Inserted vide NOTIFICATION No. SEBI/LAD-NRO/GN/2019/01 dated 01-01-2019 6. Substituted vide F. No. SEBI/LAD-NRO/GN/2022/81 dated 25-04-2022 before it was read as, gold or gold related instruments of a mutual fund