Regulation 4 - Eligibility criteria - Securities and Exchange Board of India (Vault Managers) Regulations, 2021

Eligibility criteria 4. For the purpose of grant of certificate of registration, the applicant shall fulfil the following criteria, namely: (a) The applicant shall be a body corporate incorporated in India. (b) The applicant shall have the minimum net worth of fifty crores rupees. Explanation ─ For the purposes of this regulation, the expression net worth shall have the same meaning as assigned to it under the Companies Act, 2013 . (c) The applicant shall furnish refundable Financial Security Deposit as may be specified by the Board. (d) The applicant shall have the infrastructure as specified by the Board for safe deposit, storage and withdrawal of gold. (e) The applicant shall have adequate insurance to cover losses as may be specified by the Board. (f) The applicant shall have a Standard Operating Procedure (SOP) in respect of all the recognized vaults which shall specify the following: i. Procedures for deposit and withdrawal of gold; ii. Procedures for facilitating assaying of gold, wherever required; iii. Maintenance of details of persons appointed by the Vault Manager for creating the Electronic Gold Receipt; iv. Know Your Depositor requirements; v. Security policy for ensuring the safety of gold including from theft or burglary; vi. Procedure for dealing with losses including those caused due to theft, fire, burglary, fraud, negligence as well as other force majeure events; vii. Procedure for creation of Electronic Gold Receipt; viii. Procedure for maintenance of record; ix. Procedure for periodic reconciliation of physical gold with the records maintained by it and with the records of the Depository; x. Grievance redressal procedures; xi. Maintenance of adequate infrastructure, office space, technology and computer systems capability; and xii. Any other criteria as may be specified by the Board.