Do you wish to continue to operate existing collective investment schemes


Make an application for registration to the SEBI before the expiry of two months from 15.10.1999 in Form A in First schedule to the regulations.

Attach to the same application for provisional registration of your collective investment management company already operating collective investment schemes an application fee of Rs.25,000 by way of bank draft favouring ‘ Securities ad Exchange Board of India’ payable at Mumbai or at the regional offices where the application for registration is submitted.

Further keep in mind that your company can not pending its registration certificate launch any new collective investment scheme or can mobilise money from the public or from the investor under your company’s existing schemes unless a certificate of registration is granted by SEBI under regulation.

Attach to the application mentioned in Item No.1 above the following :

(a) a certified true copy of certificate of incorporation of your company.

(b) a certified true copy of your company’s Memorandum and Articles of Association.

(c) a list of major shareholders holding five per cent or more voting rights and percentage of their shareholding as of the latest date.

(d) certified true copies of your company’s balance sheet and profit and loss account for the instant preceding three years.

(e) a list of names and activities of associate companies or concerns carrying on activities related to the securities market and granted registration by SEBI;

(f) a list of your company’s Board of Directors, their name, qualification, back-ground, experience, whether directorship is on whole-time or part-time and their directorships. Also indicate in the said list whether any of your company’s directors is in full time employment elsewhere. If any director is a member of a professional body enclose a copy of the permission furnished by the said professional body for acting as a director of your company;

(g) a list giving names, qualifications, experiences of your company’s key management personnel along with their proof of acceptance of their appointment letters and salary slips;

(h) a list of your company’s employees along with their names, qualifications and experiences;

(i) a statement giving details of infrastructural facilities such as office space and office equipments.  For office equipments mention the details of electronic office equipments, computers, fax, telephone etc. along with copies of proof of purchase of the above equipments;

6. In case your company’s application is not complete in all respects your company will be given an opportunity to complete such formalities within one month before rejecting your company’s application.

7. Keep in mind that the application so made as aforesaid will be dealt with by SEBI in the following manners:

(a) granting provisional registration;

(b) granting a certificate of registration;

(c) rejecting the application for registration.

8. If for the purpose of grant of provisional registration SEBI wants to inspect inter alia, the existing schemes, books of accounts, records and documents, show them to SEBI.

9. Note that once SEBI is satisfied with the aforesaid it may grant provisional registration to you subject to the following conditions:

(a) have your existing schemes appraised by an appraising agency, within a period of 2 years from the date of grant of provisional registration;

(b) have your existing scheme rated by an approved credit rating agency within 2 year from the date of grant of provisional registration;

(c) your company’s accounting and valuation norms should in respect of schemes already floated comply with specification given in Part II of Ninth Schedule of the Regulations, within a period of 2 year from the date of provisional registration;

(d) follow conditions specified in Regulation 11 of the SEBI

(e) allow your existing collective investment schemes subject to audit by an auditor within 1 year from the date of grant of provisional registration;

(f) creation of trust and appointment of trustees in the manner specified in Chapter IV of these Regulations within a period of 2 year from the date of grant of provisional registration;

(g) meeting of minimum net worth of Rs. 1 crore within 1 year from the date of grant of provisional registration which should be increased by Rs. 1 crore each within 2 years, 3 years, 4 years and 5 years from the date of grant of provisional registration;

(h) any other conditions which SEBI may impose.

10. Give a written undertaking to SEBI to comply with the aforesaid conditions.

11. If you fail to comply with the aforesaid conditions, you are required to wind up your existing collective investment schemes in the following manner:

(a) send an information memorandum within a week from its date to all the in-vestors who have subscribed to your schemes within two months.

(b) state in the aforesaid information memorandum the details of the state of affairs of the scheme, the amount repayable to each investor and the manner in which such amount is determined;

(c) have the said information memorandum dated and signed by all the directors of the scheme;

(d) state in it explicitly that investors desirous of continuing with the scheme may send positive consent within 1 month to continue with the scheme at their own risk and responsibility;

(e) wound up the scheme if the positive consent is received only from 25% or less of the total number of existing investors;

(f) make the payment to the investors within 3 months of the date of the information memorandum.

12. File with SEBI, on completion of the winding up, such reports as may be specified by SEBI.

13. If you are not desirous to obtain even the provisional registration from SEBI then formulate a scheme of repayment and make such repayment to the existing investors in the manner as specified above.

 14. If you are considered to be granted provisional registration then pay the fee of Rs. 5 lakhs to SEBI by way of demand draft in the manner mentioned in the Second Schedule to the Regulations.

We, Solubilis register your company and all other business entities in Coimbatore.

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