Capital adequacy requirement increased for merchant bankers; registration and renewal now require revised non refundable fees and compliance conditions.
Definitions for merchant banker regulation are expanded to include change of status, change in control, issue and certificate; applications for registration and renewals must include specified non refundable fees in Schedule II; capital adequacy is set as a net worth of not less than five crores rupees (paid up capital plus free reserves). Registrations are subject to conditions including prior Board approval for status changes, maintenance of capital adequacy, investor grievance redressal within one month, payment of fees, and three year validity of certificates.

Conditions of registration for stock brokers and sub-brokers updated, requiring exchange membership, Board approval for status changes, and grievance redressal.
Amendment adds definitions for key terms including change of status or constitution and change in control, and inserts parallel conditions of registration for stock brokers and sub-brokers: stock brokers must hold membership of a recognised stock exchange, comply with exchange rules, obtain prior Board approval for status changes to continue acting, pay Board fees, and address investor grievances within one month with reporting to the Board; sub-brokers must hold a Board certificate, be authorised in writing by a member broker, comply with exchange rules, obtain Board approval for status changes, pay fees, and ensure grievance redressal.

Venture capital fund fee amendment updates application and registration charges under SEBI regulation, effective on Gazette publication.
Amendment under section 30 substitutes Part A of the Second Schedule to the Venture Capital Funds Regulations, prescribing specified application and registration fees; the amendment takes effect on publication in the Official Gazette.

Fee revision for foreign venture capital investor registration: sets application and registration fees and effective on Gazette publication.
The amendment substitutes Part A of the Second Schedule to the principal Regulations, prescribing an application fee and a registration fee for foreign venture capital investors, and provides that the Regulations come into force upon publication in the Official Gazette.

Show cause notice power clarified: Enquiry Officers may require intermediaries to explain alleged contraventions before further action.
Where an Enquiry Officer is appointed and finds reasonable grounds, he may issue a show cause notice to the intermediary calling for an explanation why further action should not be taken, specifying the nature of the alleged contraventions; the amendment also omits clause (i) of regulation 15 and deletes the second proviso to regulation 16(1).

Regulatory corrigendum: amended short titles and citation wording for SEBI takeover and enquiry procedure regulations updated.
The corrigendum corrects the short titles and Regulation 1 wording of three SEBI notifications so that S.O. No.5(E) reads as the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) (Amendment) Regulations, 2005 with Regulation 1 clause (i) stating that these regulations may be called by that short title; S.O. No.28(E) reads as the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) (Amendment) Regulations, 2005 with Regulation 1 restated accordingly; and S.O. No.779(E) reads as the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) (Second Amendment) Regulations, 2005 with Regulation 1 restated accordingly.

Foreign investor categories expanded; new institutional and governmental entities eligible, mandatory Form AA for sub-accounts and updated application forms.
Amendments broaden eligible foreign investor categories to include pension funds, mutual funds, investment trusts, insurance/reinsurance companies, international or multilateral organisations, foreign governmental agencies and foreign central banks, and clarify that asset managers, investment managers/advisors, nominee companies, banks and institutional portfolio managers may invest on behalf of broad-based and proprietary funds. The rules require sub-account registration using Form AA, joint undertakings between applicants and sponsoring FIIs as per Form AA, and replace Form A and Form AA with comprehensive application templates setting out identity, regulatory, custodian and bank details, fund particulars, disclosures, and undertakings.

Fee schedule for buy-back filings: merchant bankers must pay tiered regulatory fees based on offer size upon submission.
Amendment to Schedule IV of the SEBI (Buy-Back of Securities) Regulations replaces paragraph (1) to require every merchant banker, while submitting the offer document or a copy of the public announcement to the Board, to pay fees pursuant to a tiered schedule based on the offer size. The amendment is titled as the 2006 Amendment Regulations and comes into force on publication in the Official Gazette, thereby modifying the principal 1998 Buy-Back Regulations.

Takeover fee rules updated to impose a graduated filing fee structure linked to offer size and increased penalties.
Revision increases specified penalties in regulation 3(5) to twenty five thousand rupees and in regulation 4(3) to one lakh rupees, and replaces regulation 18(3) with a substituted provision requiring acquirers to pay a graduated fee on filing the draft letter of offer with the Board, payable by banker's cheque or demand draft to the Securities and Exchange Board of India, payable at Mumbai, with fees linked to the offer size including fixed bands and a percentage-based fee for the largest offers.

Physical fitness requirement for appointments: Board must ensure candidates are agile and physically capable before appointment.
Amendment to regulation 4(2) of the Central Listing Authority Regulations, 2003 inserts a proviso requiring the Board to be satisfied that any person appointed as President, Vice President or Member is agile and physically capable of carrying out the duties of the office; the amendment takes effect on publication in the Official Gazette.

Renewal of recognition: exchange authorised to trade in securities under the Securities Contracts (Regulation) Act for a fixed one year term.
SEBI considered the application and, being satisfied it was in the interest of trade and public interest, grants renewal of recognition to Pune Stock Exchange Limited under the Securities Contracts (Regulation) Act for a term commencing 2nd September, 2006 and ending 1st September, 2007, in respect of contracts in securities, subject to conditions as may be prescribed or imposed hereafter.

Capital protection oriented schemes: new definition, rating, close ended requirement, fee and repurchase restrictions.
The amendment defines a capital protection oriented scheme and conditions its launch on unit ratings by a registered credit rating agency and close ended structure, permits the Board to specify further requirements, replaces "service fee" with "annual fee," establishes a two stage filing fee payment (minimum at filing and balance as specified), adds rating fees as permissible expenses for such schemes, prohibits repurchase of units before maturity, and revises Second Schedule fee bases and minima.

Sub-broker fee structure sets initial and renewal block fees for registration and mandates payment timelines as specified by Board.
Amendment to Schedule III sets a fee regime for sub-brokers: different initial and subsequent five financial year block fees depending on whether registration was granted before August 1, 2006 or on/after that date, with payment to be made within the time specified by the Board.

Renewal of recognition under the Securities Contracts (Regulation) Act grants OTC Exchange one year recognition subject to prescribed conditions.
Recognition is renewed under the Securities Contracts (Regulation) Act, 1956 by exercise of powers under Section 4 for a one year period commencing 23 August 2006 and ending 22 August 2007 in respect of contracts in securities, on the basis of trade and public interest and subject to conditions that may be prescribed or imposed.

Continuation of Whole Time Member appointment approved, subject to statutory age limit and until further orders.
Approval is granted for the continuation of Shri G. Anantharaman as Whole Time Member of the Securities and Exchange Board of India w.e.f. 1-9-2006 to 14-12-2007, under powers conferred by the Securities and Exchange Board of India Act, 1992 read with the Terms and Conditions of Services of Chairman and Members Rules, 1992, subject to the earliest of the specified period, attainment of the age of 65 years, or until further orders.

Renewal of recognition subject to compliance with inspection report suggestions before resuming trading by the exchange.
The Securities Contracts (Regulation) Act recognition is renewed under section 4 for a fixed one year term and applies to contracts in securities subject to the stated conditions and any further requirements. The Exchange must not commence trading until it has complied with the suggestions set out in the SEBI inspection report communicated to the Exchange by letter.

Custodian appointment requirement mandates custodians for portfolio managers with exemptions for small managers and advisors.
Amendments redefine principal officer as a designated employee and require that the principal officer hold a recognised professional qualification or specified securities-market experience. A new rule requires every portfolio manager to appoint a custodian for securities managed, with exemptions for managers beneath a prescribed assets-under-management threshold and for those who provide only advisory services.

Appointment of Administrator under securities regulation: new Administrator empowered to exercise Governing Board powers during supersession.
An Administrator is appointed to replace the resigning Administrator and to exercise and perform all the powers and duties of the superseded Governing Board for the remaining period of supersession; the Administrator may engage such persons as he deems necessary to assist in discharging his functions pursuant to the regulatory notification.

Security receipts: FII investment permitted with specified exceptions; registration term shortened and fees revised.
The amendment reduces FII registration validity from five years to three years and expressly permits investment in security receipts with specified exceptions: regulatory conditions in sub regulation (2) do not apply to investments in security receipts issued by securitisation or asset reconstruction companies under the relevant Act, FIIs may not invest in security receipts on behalf of sub accounts, and purchases or sales of security receipts are excluded from clause (c); statutory definitions from the Securitisation and Reconstruction Act are adopted. The Second Schedule fee entries are increased.

Continuation of Whole Time Member appointment approved, extending tenure until the specified end date or until further orders.
Approval is granted for the continuation of Shri G. Anantharaman as Whole Time Member of the Securities and Exchange Board of India, exercised by the Central Government under the SEBI Act and the Rules governing terms and conditions of service for Chairman and Members, and authorized to run until 31-8-2006 or until further orders.