CHAPTER IV

CHAPTER IV REGISTRATION OF INTERMEDIARIES

Registration of intermediaries.

17. (1) No intermediary associated with the securities market as the Board may by notification in this behalf specify, shall buy, sell, or deal in securities or provide any service or discharge any function or activity in relation to securities except under, and in accordance with the conditions as to registration obtained from the Board in accordance with the Regulations made under this Act.

Provided that the certificate of registration, obtained immediately before the commencement of this Act, shall be deemed to have been obtained from the Board in accordance with the Regulations providing for such registration.

Provided further that any person sponsoring or causing to be sponsored, establishing, carrying on or causing to be carried on any collective investment scheme or credit rating agency in the securities market immediately before the commencement of the Securities Laws (Amendment) Act, 1995 for which no certificate of registration was required prior to such commencement, may continue to operate till such time regulations are made under sub-section (2) of section 112.

Every application for registration shall be made in such manner and on payment of such fees as may be determined by regulations.
The Board may, for the protection of investors or for proper regulation of the securities market and for management of the intermediaries or in public interest, by order, suspend or cancel a certificate of registration on the grounds and in such manner as may be determined by Regulations.

Provided that no order under this sub-section shall be made unless the person concerned has been given a reasonable opportunity of being heard. [BACK]