PRIMARY MARKET DEPARTMENT
RUW CIRCULAR NO.1 (2002-2003) September 23, 2002
To all registered Underwriters
As you may be aware, the Board, as per Regulation 6(c) of the SEBI (Underwriters) Rules & Regulations, 1993, while considering applications for granting certificates of registration under the said Regulations, is required to consider interalia whether a person directly or indirectly connected with the applicant has not been granted registration by SEBI.
It is clarified that while considering this aspect, the Board may consider grant of certificate to an applicant, notwithstanding that another entity in the same group has been previously granted registration by the Board, if the following conditions are fulfilled:
It is also clarified that when as per the above policy, two entities in the same group are granted registration, any action by way of suspension or cancellation of registration taken by SEBI against one entity, may entail action under Regulation 25 of the said Regulations against other entities of the same group registered in terms of the said Regulations.
Explanation: For the purposes of this circular, two entities are considered to be in the same group if:
[‘Control’ for this purpose means control as defined in regulation 2(1)(c) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997]
NEELAM BHARDWAJ Division Chief