Schedule II - Criteria for determining a ‘fit and proper person’

Fit and proper person criteria restrict registration and continuation of intermediaries based on integrity and disqualifications.

The regulations impose a fit and proper person standard for registration and continuity of intermediaries, applying to applicants, specified officers, key management and promoters or controlling persons, including unlisted holders of twenty percent or more voting rights. The Board assesses integrity, reputation, competence and financial soundness including net worth, and enumerates disqualifications such as pending criminal complaints by the Board, charge sheets for economic offences, in-force restraint or debarment orders, recovery proceedings, convictions for moral turpitude, winding up or insolvency, unsoundness of mind, wilful defaulter status and fugitive economic offender designation. Procedural rules bar registration during specified disqualifying proceedings, mandate replacement or divestment timelines for disqualified persons, and maintain applicability during continuance of registration.