Application for grant of certificate

3. (1) An application by a registrar to an issue or a share transfer agent for grant of a certificate shall be made to the Board in Form A .
(2) The application under sub- regulation (1) may be made for any of the following categories, namely :-

(a) Category I : to carry on the activities as a registrar to an issue and share transfer agent;
(b) Category II : to carry on the activity either as a registrar to an issue or as a share transfer agent;
(3) Notwithstanding anything contained in sub-regulation (1), any application made by a registrar to an issue or a share transfer agent prior to coming into force of these regulations containing such particulars as near thereto as mentioned in Form A shall be treated as an application made in pursuance of sub-regulation (1) and dealt with accordingly.

To furnish further information, clarification etc.

4. (1) The Board may require the applicant to furnish further information or clarifications regarding activities and matters connected thereto to consider the application for grant of a certificate.
(2) The applicant or, its principal officer shall, if so required, appear before the Board for personal representation.

Application to conform to the requirements

5. Subject to the provisions of sub-regulation (2) of regulation 3, any application, which is not complete in all respects and does not conform to the instructions specified in the form, shall be rejected.
Provided that, before rejecting any such application, the applicant shall be given an opportunity to remove within the time specified such objections as may be indicated by the Board.

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 and in particular the following, namely, whether the applicant-

(a) has the necessary infrastructure like adequate office space, equipments and man- power to effectively discharge his activities;
(b) has any past experience in the activities;
(c) or any person directly or indirectly connected with him has not been granted registration by the Board under the Act;
(d) fulfils the capital adequacy requirement specified in regulation 7;
(e) is subjected to any disciplinary proceedings under the Act;
(f) or any of its director, partner or principal officer is or has at any time been convicted for any offence involving moral turpitude or has been found guilty of any economic offence.

Capital Adequacy Requirement

7. (1) The capital adequacy requirement referred to in clause (d) of regulation 6 shall not be less than the net worth of the applicant specified in sub- regulation (2).
(2) For the purposes of sub- regulation (1), the networth of the applicant shall be as follows, namely:

(a) Category I specified in clause (a) of sub-regulation (2) of regulation 3 , - Rs.6,00,000 lacs;
(b) Category II specified in clause (b) of sub-regulation (2) of regulation 3 , - Rs.3,00,000 lacs.
(3) In sub-regulation (2) the "networth" means -

(a) in the case of an applicant being a proprietary concern or a firm or an association of persons or any body of individuals, the value of capital contributed to such business by the applicant and the free reserves of any kind belonging to the business of the applicant, and
(b) in the case of a body corporate, the value of the paid up capital and the free reserves as disclosed in the books of accounts of the applicant at the time of making the application under sub-regulation (1) of regulation 3 .

Procedure for registration

8. The Board on being satisfied that the applicant is eligible, shall send an intimation to the applicant mentioning the category for which the applicant has been found eligible for the grant of certificate and grant a certificate in Form B subject to payment of fees specified in regulation 12 .

Renewal of certificate

9. (1) The registrar to an issue or share transfer agent may, if he so desires, make an application in Form A for renewal of certificate before three months of the expiry of the period of certificate.
(2) The application for renewal of certificate under sub- regulation (1) shall be dealt with in the same manner as if it were an application for the grant of a certificate under regulation 3 .

Procedure where registration is not granted

10. (1) Where an application for grant of a certificate under regulation 3 or of renewal under regulation 9 , does not fulfil the requirements mentioned in regulation 6 , the Board may reject the application after giving a reasonable opportunity of being heard.
(2) The refusal to grant or renew the certificate shall be communicated by the Board within thirty days of such refusal to the applicant stating therein the grounds on which the application has been rejected.
(3) Any applicant may, being aggrieved by the decision of the Board under sub-regulation (2) apply within a period of thirty days from the date of receipt of such intimation, to the Board for reconsideration of its decision.
(4) On receipt of the application made under sub-regulation (3), the Board shall reconsider its decision and communicate its findings thereon as soon as possible in writing to the applicant.

Effect of refusal to grant or renew certificate

11. Any registrar to an issue or a share transfer agent whose application for grant or renewal of a certificate has been refused by the Board shall on and from the date of the receipt of the communication under sub- regulation (2) of regulation 10 cease to carry on any activity as registrar to an issue or share transfer agent.

Payment of fees and the consequences of failure to pay fees

12. (1) Every applicant eligible for grant or renewal of a certificate shall pay such fees in such manner and within the period specified in Schedule II:
Provided that the Board may on sufficient cause being shown permit the registrar to an issue or share transfer agent to pay such fees at any time before the expiry of six months from the date on which such fees become due.
(2) Where a registrar to an issue or share transfer agent fails to pay the fees as provided in sub- regulation (1), the Board may suspend the certificate, whereupon the registrar to an issue or share transfer agent shall cease to carry on any of his activity as a registrar to an issue or share transfer agent, as the case may be.