Regulation 14 - Networth requirements. - Securities Contracts (Regulation) (Stock Exchanges And Clearing Corporations) Regulations, 2012

CHAPTER III NETWORTH OF STOCK EXCHANGE AND CLEARING CORPORATION Networth requirements. 14. (1) Every recognised stock exchange shall have a minimum networth of one hundred crore rupees at all times: Provided that a recognised stock exchange having a lesser networth as on the date of commencement of these regulations shall achieve a minimum networth of one hundred crore rupees within a period of three years from the date of commencement of these regulations. (2) Every applicant seeking recognition as a clearing corporation under regulation 4 shall have a minimum networth of one hundred crore rupees: Provided that sub-regulation (2) shall not apply to an applicant which clears and settles trades of a recognised stock exchange on the date of commencement of these regulations. (3) Every recognised clearing corporation shall achieve a minimum networth of three hundred crore rupees within a period of three years from the date of recognition granted under these regulations: Provided that the Board may, upon an application made by the recognised clearing corporation, extend the time specified above in the interest of the securities market. (4) A recognised stock exchange or a recognised clearing corporation shall not distribute profits in any manner to its shareholders until the networth specified under sub-regulations (1) and (3), as the case may be, is achieved. (5) Every recognised stock exchange or recognised clearing corporation shall submit an audited networth certificate from the statutory auditor on a yearly basis by the thirtieth day of September of every year for the preceding financial year. Explanation I.-For the purposes of this regulation, networth of a stock exchange means the aggregate value of paid up equity share capital plus free reserves (excluding statutory funds, benefit funds and reserves created out of revaluation) reduced by the investments in businesses, whether related or unrelated, aggregate value of accumulated losses and deferred expenditure not written off, including miscellaneous expenses not written off. Explanation II.-For the purposes of this regulation, networth of a clearing corporation means the aggregate value of its liquid assets calculated in the manner as specified by the Board from time to time.