Q.39: I need help on SEBI order on the networth certificate required by 30 th sept,2021 for non corp / LLP

Can you pls find out and share the right pdf.
just had a querry

For corporate RIA
there is a requirement of submitting networth certificate

My querry is

Does the certificate have to be as on 30 th sept meaning calculated as in sept 21
or is it as on 31 st march 2021

We have to submit by Sept or October end
can u pls help and clarify.

Response:

In connection to Networth, SEBI IA Regulation provides following relevant mandates:

• As per Regulation 6 – at the time of Application for registration as IA, you should satisfy Regulation 8 criteria. The Networth certificate should not be more than 6 months old.
• As per Regulation 8 – in general, the RIA shall have a specified networth. (Individual: 5 Lakhs; Non-Individual: 50 Lakhs)

For existing RIAs as on date of amendment in the SEBI IA Regulations in 2020, 3 years grace time is given to get complied with the Networth criteria.

• As per Regulation 19(3) – Annual compliance audit is required – which is Financial year basis (according to SEBI IA Guidelines Circular).

For determining the compliance with Regulation 8 Networth criteria, the Annual Networth Certificate may be obtained, as on Financial year-end i.e. 31st march.

The Networth certificate may be obtained and kept on record before September end, for being useful for the Annual compliance audit, which is to be concluded before 30th Sep.

Note: Separate submission of Networth certificate in connection to Annual compliance is not mentioned by SEBI, as of now.