SECURITIES AND EXCHANGE BOARD OF INDIA
PRIMARY MARKET INTERMEDIARIES DIVISION
Mittal Court, A Wing, Gr. Floor,
224, Nariman Point, Mumbai 400 021
January 18 , 1999
RRTI CIRCULAR NO.3(98-99)
To: All Registered REgistrars to an Issue
/ Share Transfer Agents
Sub: Submission of the Networth Certificate
In exercise of the powers conferred upon SEBI, under section 11 of the SEBI Act, 1992, as also in implementation of the provisions of the SEBI (Registrars to an Issue and Share Transfer Agents), Regulations, 1993, the present circular is hereby issued to all Registrars to an Issue/Share Transfer Agents (RTIs/STAs) holding a certificate of registration, granted to them in accordance with the SEBI (Registrars to an Issue and Share Transfer Agents), Rules and Regulations, 1993.
SUBMISSION OF THE NETWORTH CERTIFICATE
In terms of sub Clause (iii) of Clauses (a) & (b) of Regulations 14 (1) of the SEBI (Registrars to an Issue and Share Transfer Agents) Regulation, 1993, every RTI/STA whether a body corporate or not, is required to keep and maintain, in respect of the three preceding financial years, statement of capital adequacy requirement for each quarter. Further under Regulation 7, every RTI/STA is required to fulfil the networth criteria, prescribed therein. Hence in order to monitor on regular basis and to ensure compliance of the capital adequacy and the networth norms by the RTI/STA, as specified under Regulation 7(1) of the SEBI (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 which is required to be fulfilled and maintained, both at the time of the grant of renewal of the certificate of registration and at all times during the period of registration, all RTIs/STAs are hereby directed to submit, as soon as possible, but not later than two months from the close of each financial year, a certified true copy of their networth statement.
All RTIs/STA/s are advised to ensure compliance of the instructions contained herein and the non compliance of this would amount to a violation of the Code of Conduct as specified in Schedule III of the SEBI (Registrars to an Issue and Share Transfer Agents) Regulations, 1993.
Please acknowledge receipt.