S O
766 (E) In exercise of the powers conferred by section 29 of the Securities
and Exchange Board of India, Act 1992, (15 of 1992) the Central Government
hereby makes the following rules, namely:- (1)
These rules may be called the Securities and Exchange
Board of India (Underwriters) Rules, 1993. (2)
They shall come into force on the date of their
publication in the Official Gazette. ?In these rules, unless the context otherwise
requires - (a)
"Act" means the Securities and Exchange Board of
India, Act 1992(15 of 1992); (b)
"body corporate" means a body corporate as
defined in clause (7) of section 2 of the Companies Act, 1956 (1 of 1956); (c)
"certificate" means a certificate of
registration granted or renewed by the Board under the regulations; (d)
"issue" means an offer of sale of securities by
any body corporate or by any other person or group of persons on its or his
or their behalf, as the case may be, to the public or the holders of
securities of such body corporate or person or group of persons; (e)
"regulations" means the Securities and Exchange
Board of India (Underwriters) Regulations 1993; (f)
"underwriter" means a person, who engages in the
business of underwriting of an issue of securities of a body corporate; (g)
"underwriting" means an agreement with or
without conditions to subscribe to the securities of a body corporate when
the existing shareholders of such body corporate or the public do not
subscribe to the securities offered to them. (1)
No person shall act as underwriter unless he holds a
certificate granted by the Board under the regulations: Provided thatsuch person, who was engaged as
underwriter prior to the coming into force of the Act, may continue to carry
on activity as underwriter if he has made an application for such
registration under the proviso to sub-section (1) of Section 12 of the Act
till the disposal of such application: (2)
Notwithstanding anything contained in sub-rule (1), every
stock broker or merchant banker holding a valid certificate of registration
under Section 12 of the Act, shall be entitled to act as an underwriter
without obtaining a separate certificate for underwriting activities which
shall be governed by these rules and regulations. The
Board may grant or renew a certificate to an underwriter subject to the
following conditions namely; (a)
in case of any change in the status and constitution, the
underwriter shall obtain prior permission of the Board to continue to act as
underwriter; (b)
without prejudice to the obligations under any other, the
underwriter shall enter into a valid agreement with the body corporate on
whose behalf he is acting as underwriter and the said agreement amongst other
things may define the allocation of duties and responsibilities between him
and such body corporate and; (c)
he shall pay the amount of fees of registration in the
manner provided in the regulations; (d)
he shall abide by the rules and regulations made under the
Act in respect of the activities carried on by him as an underwriter. The
certificate of registration or its renewal, as the case may be, shall be
valid for a period of three years from the date of its issue to the
underwriter.
SECURITIES AND EXCHANGE BOARD OF INDIA
(UNDERWRITERS) RULES, 1993
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