Regulation 7 - Functions of the Administrator - Securities and Exchange Board of India (Appointment of Administrator and Procedure for Refunding to the Investors) Regulations, 2018

Part II - Functions of the Administrator 7. (1) An Administrator shall perform the following functions (a) As may be directed by the Recovery Officer, obtain from the defaulter or any other person, any information or document including documents relating to ownership and possession of properties, details of amount raised from investors, claims of investors, amount claimed to have been refunded to investors; (b) Make a record of the properties that have been attached by the Recovery Officer including the additional properties that have been entrusted by the Recovery Officer from time to time and those properties which are not part of the attachment order; (c) Make a record of the bank accounts and dematerialised accounts of the defaulter and value of the monies and securities held thereunder; (d) Arrange for a proclamation for the sale of the property and arrange affixation of the copy of such proclamation in accordance with the provisions of the Act; (e) Open an interest bearing bank account, under the control of the Recovery Officer, with a scheduled public sector bank for depositing the proceeds of the money recovered from the sale of the assets and for making repayment to the investors; (f) Sell the attached properties in accordance with these regulations or as may be directed by the Recovery Officer; (g) Call for claims, in the manner specified in these regulations or as may be directed by the Recovery Officer, for the purposes of repayment to investors, pursuant to an order of the Board for refunds; (h) Verify the claims of investors and also that of the defaulter in respect of repayment of monies, either partly paid or wholly paid, claimed to have been made to investors on the basis of documentary evidence: Explanation Verification may involve forensic auditing. (i) Carry out any other necessary incidental and supplementary act, with the prior approval of the Recovery Officer that may be required for the purpose of carrying out its obligations under these regulations. (2) While discharging the functions under these regulations, the Administrator - (a) may engage the services of a peer reviewed chartered accountant for verifying the claims of investors on the basis of documentary evidence and for submission of a certified report to the Administrator; (b) shall engage the services of a registered valuer to evaluate the properties of defaulter that are attached by the Recovery Officer and for submission of a certified valuation report in accordance with the guidelines issued by the Board; (c) may engage the services of a registrar and share transfer agent registered with the Board or such other agency as may be approved by the Recovery Officer, for managing the entire repayment process. Provided that the fees paid for such services shall be fixed by the Administrator taking into account the relevant factors including (a) the number of investors and the claims that are made; (b) quantum of work involved; (c) the number of assets to be evaluated; (d) the geographical location of the property and its proximity with the valuer s place of business; and such fees shall be within the overall remuneration fixed by the Board for the Administrator: Provided further that the intermediary or such other person engaged by the Administrator, shall not have any conflict of interest which would impede their independence or impartiality. (3) The Administrator shall submit a monthly report or a report as and when called for by the Recovery Officer on the progress of work entrusted including the monies realised pursuant to the sale of the properties and the repayments made to the investors.