Regulation 9 - Refund to investors - Securities and Exchange Board of India (Appointment of Administrator and Procedure for Refunding to the Investors) Regulations, 2018

Part IV - Refund of monies Refund to investors. 9. (1) For the purposes of inviting claims from the investors, the Administrator shall - (a) issue advertisements in an English and a Hindi newspaper having nationwide circulation and if so directed by the Recovery Officer, issue such advertisement in vernacular newspaper(s) having circulation in the area(s) where the investors are concentrated; (b) direct the defaulter to issue advertisement in its website, if available. (2) The advertisement referred to sub-regulation (1) may also be hosted on the website of the Board. (3) The advertisements referred to in sub-regulation (1) shall contain instructions on the manner of making claims by investors and the documents and information that are to be submitted for verifying and processing their claim applications. (4) The invitation of claims from the investors shall be through electronic mode or be received in the office of the Administrator; Provided that the investors claims received, if any, by the Board and forwarded to the Administrator shall also be included in the relevant records maintained by the Administrator. (5) The Administrator or the chartered accountant engaged by the Administrator, shall consider the total eligible claims as against the monies available for distribution to investors in order to determine whether the whole amount or a proportionate amount may be repaid to the investors as may be directed by the Recovery Officer. (6) Upon ascertaining the eligibility, the Administrator in consultation with the Recovery Officer, shall repay the money to the eligible investors only through pay orders, demand drafts and electronic transfer through NEFT or RTGS. (7) The refund process shall be kept open for an appropriate period as may be decided in consultation with the Recovery Officer. (8) The monies remaining in the interest bearing escrow bank account after satisfying all the permissible claims of investors and other charges, shall be retained therein for a period of three years in order to meet the claims that may be received from any unpaid investor. (9) Upon completion of the period specified under sub-regulation (8), the unpaid monies due to investors, if any, shall be transferred to the Investor Protection and Education Fund of the Board. (10) In case any claim is received from an unpaid investor after the refund process has been closed, the same may be made from the Investor Protection and Education Fund after necessary verification by the Administrator in consultation with the Recovery Officer: Provided that the claim shall be made within a period of three years from the date of transfer of monies to the Investor Protection and Education Fund in terms of sub-regulation (9). (11) The defaulter, and its officers who are in default as defined under section 2 of the Companies Act, 2013 , as applicable, shall furnish an undertaking that they shall be liable for payment if any complaint is received in future by the Board from any investor.