Regulation 16 - Procedure to be followed under this chapter - SECURITIES AND EXCHANGE BOARD OF INDIA (PROCEDURE FOR HOLDING ENQUIRY BY ENQUIRY OFFICER AND IMPOSING PENALTY) REGULATIONS, 2002

Procedure to be followed under this chapter 1 [ 16. (1) The Chairman and member may appoint an officer of the Board, not below the rank of Assistant General Manager or Assistant Legal Adviser for giving his recommendation after following the summary procedure in respect of any matter specified in regulation 15: Provided that in respect of any matter specified under regulation 15, if a representation is received from an intermediary to dispense with the procedure laid down in regulation 16, the Chairman or the member may not appoint an officer of the Board under this sub-regulation and pass an appropriate order after considering the representation of the intermediary. 2 [ ***] (2) The officer shall issue to the intermediary, against whom the proceedings are being held, a notice requiring the intermediary to make a written submission in reply to the notice within such time, 3 [ ***] not exceeding fifteen days after the receipt of the notice, as may be specified in the notice 4 [ provided that the Enquiry Officer may extend the time mentioned under sub-regulation (2) for sufficient reason to be recorded in writing] (3) If the intermediary fails to make a written submission to the notice within the period specified in the notice, the officer shall pass such orders as he considers appropriate in the circumstances on the merits and in the light of the material on record and shall submit a report to the Chairman or the member, as the case may be, and may recommend taking of any action under sub-regulation (1) of regulation 13 as he considers appropriate in the circumstance of the case and shall give reasons for taking such action. (4) If the intermediary makes submission within the said period, the officer shall, after considering the submission so made, submit a report to the Chairman or the member, as the case may be, and may recommend taking of any action under sub-regulation (1) of regulation 13 as he considers appropriate in the circumstances of the case and shall give reasons for taking such action. (5) The Chairman or the member, as the case may be, after receipt of recommendations from the officer under sub-regulation 5 [ (3) or] (4), shall pass such orders as he may deem appropriate. 6 [ (6) The Chairman or the member may pass a common order in respect of a number of intermediaries where the subject matter in question is substantially the same or similar in nature.] *********** 1 Substituted by SEBI (Procedure for Holding enquiry by Enquiry officer and imposing penalty (second amendment). Regulations, 2004 w.e.f. 2.09.2004. 2. Omitted by the SEBI(Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) (Amendment) Regulations, 2006, w.e.f. 21.08.2006. Prior to its omission, Proviso read as under: Provided further that where the Board has reasonable grounds not to accept the surrender of certificate of registration, it shall follow the procedure as laid down in regulation 16 before passing the order. 3. Word ordinarily omitted by the SEBI (Procedure for Holding of Enquiry by Enquiry Officer and Imposing Penalty) (Second Amendment) Regulations, 2005, w.e.f. 7.6.2005.* 4. Inserted, ibid *[As corrected vide SO 1333(E), dated 21.08.2006 5. Inserted by the SEBI (Procedure for Holding Enquiry Officer and Imposing Penalty) (Amendment) Regulations, 2003 , w.e.f. 27.11.2003. 6. Inserted by the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) (Second Amendment) Regulations, 2004, w.e.f. 02.09.2004.