TaxTMI 
TaxTMI 
Securities and Exchange Board of India (Vault Managers) Regulations, 2021
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....text otherwise requires, the terms defined herein shall have the meanings assigned to them, and their cognate expressions shall be construed accordingly, - (a) "Act" means the Securities and Exchange Board of India Act, 1992 (15 of 1992); (b) "Accredited refineries" means refineries empanelled by the Stock Exchanges; (c) "Assayer" means a person engaged in the process of assessing the purity or quality of gold; (d) "Beneficial Owner" means a person whose name is recorded as such with a depository/depository participant; (e) "Board" means the Securities and Exchange Board of India established under section 3 of the Act; (f) "Change in control", in relation to a Vault Manager being a body corporate, shall be construed with reference to: (i) the definition of control in terms of regulation 2(1)(e) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 as amended from time to time if its shares are listed on any recognized stock exchange; (ii) in any other case, change in the controlling interest in the body corporate; Explanation ─ For the purpose of sub-clause (ii), the express....
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....y person intending to carry on the business as a Vault Manager on or after the commencement of these regulations shall make an application to the Board for grant of a certificate of registration. (2) An application for grant of a certificate under sub-regulation (1) shall be made in Form A of the First Schedule and shall be accompanied by a non-refundable application fee in the manner as specified in the Second Schedule. Eligibility criteria 4. For the purpose of grant of certificate of registration, the applicant shall fulfil the following criteria, namely: (a) The applicant shall be a body corporate incorporated in India. (b) The applicant shall have the minimum net worth of fifty crores rupees. Explanation─ For the purposes of this regulation, the expression "net worth" shall have the same meaning as assigned to it under the Companies Act, 2013. (c) The applicant shall furnish refundable Financial Security Deposit as may be specified by the Board. (d) The applicant shall have the infrastructure as specified by the Board for safe deposit, storage and withdrawal of gold. (e) The applicant shall have adequate insu....
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....er any law for the time being in force, in connection with providing its services; (d) the applicant has adequate and competent persons employed who have the required experience, knowledge and ability for managing the business of the Vault Manager; (e) the applicant has prepared a Standard Operating Procedure (SOP) in accordance with regulation 4, setting out the systems and procedures to be followed by it for the effective and efficient discharge of its functions; (f) the applicant engages in any other business apart from providing vaulting services; (g) the applicant has been refused registration by the Board or whose certificate of registration has been cancelled by the Board; (h) the applicant or any of its employees is involved in any proceedings connected with the securities market or any other regulatory or enforcement agency; (i) the applicant is fulfilling the fit and proper criteria as specified by the Board in Schedule II of the Securities and Exchange Board of India (Intermediaries) Regulations, 2008; and (j) the grant of the certificate of registration is in the interest of the investors. (2) Notwithstan....
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....onable opportunity of making a written representation. (2) The decision of the Board to reject the application shall be communicated to the applicant within thirty days of such decision. Surrender of registration 11. (1) A Vault Manager shall make an application to the Board in terms of Chapter V of the Securities and Exchange Board of India (Intermediaries) Regulations, 2008 to surrender the certificate of registration along with information that would satisfy the Board that: (a) the vaults have no pending obligations for physical delivery of gold; and (b) all disputes with respect to the gold deposited with it for the purpose of providing vaulting services as specified in these regulations have been satisfactorily resolved. (2) After surrender of registration, the financial security deposit furnished by the Vault Manager shall be refunded as per the procedure specified by the Board. CHAPTER III DUTIES AND OBLIGATIONS OF VAULT MANAGERS General obligations 12. (1) The Vault Manager shall be responsible for taking the deposit of the gold in the manner specified in Chapter IV of these regulations. (2) The gold deposited with the Vault Mana....
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....may be specified by the Board. (19) The Vault Manager shall have adequate mechanisms for the purposes of reviewing, monitoring and evaluating the vault's systems, procedures and safeguards. (20) The Vault Manager shall ensure delivery of gold to the beneficial owner as per the gold standard. (21) The Vault Manager shall clearly disclose all charges related to its services on its website. (22) The Vault Manager shall submit periodic reports to the Board in such form and manner, including in electronic form, as may be specified by the Board in this behalf. Segregation of activities 13. Where a Vault Manager is carrying on any activity besides those laid down in these regulations, then the activities relating to his business as Vault Manager shall be separate and segregated from all other activities including earmarking separate space for storage of gold for trading of Electronic Gold Receipt and storage of goods for its other businesses. Maintenance of records 14. (1) The Vault Manager shall have systems for recording all transactions in electronic form pertaining to vaulting services. (2) The Vault Manager shall maintain the following records and documents....
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....e an Electronic Gold Receipt in the name of such depositor as beneficial owner by entering the following details in the common interface: (a) Account details of Beneficial Owner maintained with the Depository; (b) Details of Depository Participant; (c) Name of the Depository having account of Beneficial Owner; (d) Name and address of the beneficial owner; (e) PAN number of the Beneficial Owner; (f) Registration number of the Vault Manager and date up to which such registration is valid; (g) Name of the vault and its complete postal address; (h) Date of creation of Electronic Gold Receipt; (i) Rates of storage charges and other related charges, if any; (j) Description of the gold bars including particulars of quantity, weight and purity; (k) Bar numbers; (l) Purity Certificate; (m) Name of the refiner; and (n) Any other particulars as may be specified by the Board. (4) The Electronic Gold Receipt shall contain the following: (a) Electronic Gold Receipt number; (b) Name and address of the beneficial owner; (c) Registration number ....
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.... provisions of the Act, these regulations and circulars and guidelines issued thereunder are being complied with by the Vault Manager; (d) to inspect into the affairs of the Vault Manager in the interest of the securities market or in the interest of investors. Notice before inspection 21. (1) Before ordering an inspection under regulation 20, the Board shall give not less than ten days' notice to the Vault Manager. (2) Notwithstanding anything contained in sub-regulation (1), where the Board is satisfied that in the interest of the investors no such notice should be given, it may by an order in writing direct that the inspection of the affairs of the Vault Manager be taken up without such notice. (3) During the course of an inspection, the Vault Manager against whom the inspection is being carried out shall be bound to discharge his obligations as provided in regulation 22. Obligations of the Vault Managers on inspection 22. (1) It shall be the duty of the Vault Manager whose affairs are being inspected and of every director, officer and employee thereof to produce to the inspecting officer, such books of accounts, records and other documents in its cust....
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....- (a) contravenes any of the provisions of the Act, the rules framed thereunder or these regulations; (b) fails to furnish any information relating to its activity as Vault Manager as required by the Board; (c) furnishes false and misleading information to the Board; (d) does not submit reports as required by the Board; (e) does not co-operate in any enquiry or inspection conducted by the Board; (f) fails to update its systems and procedures as recommended by the Board; (g) fails to resolve the complaints of complainants or fails to give a satisfactory reply to the Board in this behalf; (h) makes a breach of the Code of Conduct specified in the Third Schedule; or (i) fails to pay the fees in accordance with these regulations; shall be dealt with in the manner provided under the Securities and Exchange Board of India (Intermediaries) Regulations, 2008. CHAPTER VII MISCELLANEOUS Power of the Board to issue clarifications and guidelines 28. In order to remove any difficulties in respect of the application or interpretation of these regulations, the Board may issue suitable clarifications or....
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....Name; Address; Qualification; Designation; Date of Appointment; PAN no. (Certified PAN Copy); Telephone No.; Mobile; Email; work experience] 5. Whether registered with any other authority and the copy of registration with that authority BUSINESS INFORMATION 1. Details of the activities carried on by the applicant, in India. 2. Details of associates of the applicant operating in India and activities carried on by them. 3. Whether the applicant is involved in any other business related to the securities market. 4. Details of grievance redressal and dispute resolution mechanism 5. Details of outsourced activities 6. Certified copy of Standard Operating Procedure FINANCIAL INFORMATION 1. Net Worth certificate not older than three months from the date of application 2. Copy of audited financial statements for the last two financial years INFORMATION CONCERNING THE VAULT(s) 1. Number of vault(s) in respect of which recognition is sought: 2. Details of the vaults(s): i. Complete address of the vault(s) along with pin code, email address, contact person and contact number; ....
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....plication. I/We further agree that I/we shall comply with, and be bound by the Securities and Exchange Board of India Act, 1992, and the Securities and Exchange Board of India (Vault Managers) Regulations, 2021 and such other circulars, guidelines or instructions as may be issued by the Securities and Exchange Board of India from time to time. For and on behalf of_______________ (Name of the applicant) Authorized signatory __________ Authorized signatory_________ (Name) (Name) Signature_________ &n....
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....rompt in providing vaulting services to the beneficial owners. ii. take reasonable care to organize and control its affairs responsibly and effectively, with adequate risk management systems. iii. maintain adequate financial resources. iv. observe proper standards of market conduct in all their businesses relating to vaulting services. v. maintain the highest standards of integrity, fairness and professionalism in the discharge of its duties. vi. exercise due diligence in safe-keeping of the assets of the beneficial owners in its custody for which it is acting as a Vault Manager. vii. be continuously accountable for the movement of gold between its own authorized vaults and shall provide complete audit trail, whenever called for by the Board. viii. establish and maintain adequate infrastructural facility to be able to discharge vaulting services. ix. ensure that all operating procedures of the Vault Manager shall be well documented and backed by operation manuals. x. maintain confidentiality in respect of the information of the beneficial owner. xi. take necessary precautions to ensure that co....