Regulation 6 - Consideration of application - Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992

Consideration of application. 6. The Board shall take into account for considering the grant of a certificate, all matters which are relevant to the activities relating to merchant banker and in particular the applicant complies with the following requirements, namely:- 1 [(a) the applicant shall be a body corporate other than a non-banking financial company as defined under clause (f) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934), as amended from time to time : 2 [Provided that the merchant banker who has been granted registration by the Reserve Bank of India to act as a primary or satellite dealer may carry on such activity subject to the condition that it shall not accept or hold public deposit;] 3 [(aa)] the applicant has the necessary infrastructure like adequate office space, equipments, and manpower to effectively discharge his activities; (b) the applicant has in his employment minimum of two persons who have the experience to conduct the business of merchant banker; (c) a person directly or indirectly connected with the applicant has not been granted registration by the Board. Explanation : For the purposes of this clause the expression directly or indirectly connected means any person being an associate, subsidiary or inter-connected or group company of the applicant in case of the applicant being a body corporate; (d) The applicant fulfils the capital adequacy requirement specified in regulation 7; (e) The applicant, his partner, director or principal officer is not involved in any litigation connected with the securities market which has an adverse bearing on the business of the applicant; (f) The applicant, his director, partner or principal officer has not at any time been convicted for any offence involving moral turpitude or has been found guilty of any economic offence; (g) The applicant has the professional qualification from an institution recognised by the Government in finance, law or business management; 4 [(gg) the applicant is a fit and proper person;] (h) grant of certificate to the applicant is in the interest of investors. ************** NOTES:- 1. Clause (a) to regulation 6 was inserted by the Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 1997 w.e.f., 09.12.1997. 2. Proviso to clause (a) to regulation 6 was inserted by the Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 1999 w.e.f., 17.11.1999. 3. Clause (a) to regulation 6 was renumbered as (aa) by the Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 1997 w.e.f., 09.12.1997. 4 Clause (gg) to regulation 6 was inserted by the Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 1997 w.e.f., 09.12.1997