Capital adequacy for underwriters: net worth requirement applies, with stockbrokers bound by exchange-specific standards. Regulation 7 requires applicants for registration as underwriters to meet a minimum capital adequacy requirement expressed as a specified net worth. ... Summary
Securities and Exchange Board of India (Underwriters) Regulations, 1993
Capital adequacy for underwriters: net worth requirement applies, with stockbrokers bound by exchange-specific standards.
Regulation 7 requires applicants for registration as underwriters to meet a minimum capital adequacy requirement expressed as a specified net worth. Stockbrokers acting as underwriters must instead satisfy the capital adequacy requirements laid down by their stock exchange. "Net worth" is defined for proprietary concerns, firms or associations as capital contributed plus free reserves, and for bodies corporate as paid-up capital plus free reserves as disclosed in the books of account at the time of application under regulation 3.
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