No person shall carry out securities business without having obtained a license issued by the Board
How to Obtain License?
Corporate body should make an application to the Board along with the prescribed documents and details in a prescribed form
Following matters should be specified:
- Type of Securities business and services to be Provided
- If agent is to be appointed or the business is to be done in collaboration with others, matters pertaining thereto
- in case of those business persons who are allowed to carry on business only upon receiving membership of stock exchange, a recommendation letter of such stock exchange
- Grounds proving the ability to carry on securities business
Acronym - SARA
if the board is satisfied of the following, then the Board shall grant the license:
- the body corporate has the ability to carry on the securities business
- the Agent has obtained technical and educational qualification
The Board shall also consider the following in relation to CEO, Officers, Agents, Directors:
- Financial Status
- Education and training related to Securities Business
- Experience in Securities Business
- Social Status and Character
Acronym - FEES
Condition -
- License to Carry out Securities business shall only be provided to Public companies or a body corporate except - Securities Brokerage and Investment Consultancy Services
- the board may issue license that such person is restrained from conducting other securities business having regard to the interest of capital markets
Validity - End of the Fiscal Year in which it is issued
Renewal - Within 3 months from the date of expiry of each fiscal year
Extension - 3 months from the expiry of time limit paying fine of 25% on the annual fees
Termination - If license not renewed within the time limit
Published By
Aadesh Kandel
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