Procedure for Registration of Underwriters with SEBI

As per the norms of the Securities and Exchange Board of India or SEBI an underwriter is a risk assessing entity that works for someone in exchange of some fee. The risk assessment party or UNDERWRITERS as they have been called assumes and evaluates the risk involved in the planning and functioning of the other party. The fee may be charged as premium, interest, commission or spread. They do this business in the fields like insurance industry, mortgage industry, debt securities, equity market and trading, as well as banking industry.

The underwriters are often termed as risk experts and help institutes to avoid financial loses in long term investments. To function as an underwriter in the market the desiring applicant need to procure license or registration under the SEBI. Underwriters Registration with SEBI needs to be done under the guide lines set by  Securities and Exchange Board of India (Underwriters) Regulations laid in1993.

Registration Procedure for Underwriters

1. The applicant has to fill out Form A.  The application has 2 major parts, namely: Part-I on General/Personal Information and Part-II on Business Information.

The Part-I of application will collect information on the applicant as mentioned below:

• General Information-Information of Applicant
• Details of Organisation Structure
• Details of Infrastructure Facilities
• Business Plans for three years
• Financial Information

The Part-II of application will collect information on the Business as mentioned below:

• Nature of Underwriting
• Experience details

2. If the board feels that information is incomplete and need further information from the applicant, then the applicant or principal officer to appear before the board. This gives the opportunity to the applicant to provide more information under Regulation 3, where Form-A can be used.
3. Application to conform to the requirements

​If the application is not complete in any aspect or is not according to the instructions given in the form, then the form will be summarily rejected. Prior to rejection, the applicant will be provided one month of time to remove any objection that could have been indicated by the board. Applicants will also be provided with an additional one month to meet the requirements of the board.

Also, read: ​What is the Eligibility for Underwriters to obtain registration under SEBI?