Regulation 7 - Capital adequacy requirement - Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992

1 [Capital adequacy requirement. 7. The capital adequacy requirement referred to in clause (d) of regulation 6 shall be a net worth of not less than five crore rupees. Explanation: For the purposes of this regulation, ―net worth means the sum of paid-up capital and free reserves of the applicant at the time of making application under sub-regulation (1) of regulation 3.] ****** 1 Substituted by the Securities and Exchange Board of India (Merchant Bankers) (Third Amendment) Regulations, 2006. w.e.f. 7-9-2006. Prior to the substitution the regulation (7) read as ― Capital Adequacy Requirement 7. (1) The capital adequacy requirement referred to in sub- regulation (d) of regulation 6 shall not be less than the net worth of the person making the application for grant of registration. (2) For the purposes of sub- regulation (1), the networth shall be as follows, namely: - Category Minimum Amount Category I *[Rs. 5, 00, 00, 000] Category II ₹ 50, 00, 000 Category III ₹ 20, 00, 000 Category IV Nil Explanation: For the purposes of this regulation networth means in the case of an applicant which is a partnership firm or a body corporate, the value of the capital contributed to the business of such firm or the paid up capital of such body corporate plus free reserves as the case may be at the time of making application under sub-regulation (1) of regulation 3. *The figure 1, 00, 00, 000 in sub-regulation (2) of regulation 7 was Substituted by SEBI (Merchant Bankers) (Amendment) Regulations, 1995 w.e.f, 7.09.1995