Regulation 7 - Capital Adequacy Requirement - Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993

7. Capital Adequacy Requirement.─ (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. 1 [50,00,000]; (b) Category II specified in clause (b) of sub-regulation (2) of regulation 3, - Rs. 2 [25,00,000]: 3 [Provided that a registrar to an issue or a share transfer agent, who was granted a certificate of initial or permanent registration, as the case may be, under these regulations prior to the commencement of the Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) (Second Amendment) Regulations, 2011, shall raise its net worth to the said minimum within a period of three years from such commencement:] 4 [Provided 5 [further] that the capital adequacy requirement shall not be applicable for a department or division of a body corporate performing activities referred to in sub-clause (i) of clause (g) of regulation 2.] (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 anybody 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. ******** 1 Substituted for 6,00,000 by the SEBI (Registrars to an Issue and Share Transfer Agents) (Second Amendment) Regulations, 2011, w.e.f. 16-8-2011. 2 Substituted for 3,00,000 , ibid. 3 Inserted, ibid. 4 Inserted by the SEBI (Registrars to an Issue and Share Transfer Agents) (Second Amendment) Regulations, 1999, w.e.f. 17-11-1999. 5 Inserted by the SEBI (Registrars to an Issue and Share Transfer Agents) (Second Amendment) Regulations, 2011, w.e.f. 16-8-2011.