Capital adequacy requirements bar merchant bankers below minimum net worth from undertaking fresh permitted activities until compliance is achieved. Regulation 7 makes minimum net worth the capital-adequacy condition linked to registration as a merchant banker under clause (d) of regulation 6. A ... Summary
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Capital adequacy requirements bar merchant bankers below minimum net worth from undertaking fresh permitted activities until compliance is achieved.
Regulation 7 makes minimum net worth the capital-adequacy condition linked to registration as a merchant banker under clause (d) of regulation 6. A Category I merchant banker must maintain net worth of not less than fifty crore rupees, while Category II must maintain not less than ten crore rupees. Merchant bankers already holding registration certificates must meet the requirement within the manner and time specified by the Board. A merchant banker below the applicable minimum cannot undertake fresh permitted activity until compliance is achieved.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.