Capital adequacy requirement: merchant bankers must maintain prescribed net worth or suspend fresh permitted activities until compliance. The regulation prescribes minimum net worth thresholds for merchant bankers by category, requires existing registrants to comply within Board specified manner and time, and prohibits any fresh permitted activity by a merchant banker that fails to meet the minimum net worth until compliance. Net worth is defined as the statutory corporate definition for bodies corporate and as fixed partners' contribution plus reserves and surplus for limited liability partnerships.
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.
Provisions expressly mentioned in the judgment/order text.
Capital adequacy requirement: merchant bankers must maintain prescribed net worth or suspend fresh permitted activities until compliance.
The regulation prescribes minimum net worth thresholds for merchant bankers by category, requires existing registrants to comply within Board specified manner and time, and prohibits any fresh permitted activity by a merchant banker that fails to meet the minimum net worth until compliance. Net worth is defined as the statutory corporate definition for bodies corporate and as fixed partners' contribution plus reserves and surplus for limited liability partnerships.
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