Regulation 16 - By an Administrator - Securities and Exchange Board of India (Appointment of Administrator and Procedure for Refunding to the Investors) Regulations, 2018

CHAPTER III Action in case of default By an Administrator. 16. (1) The Recovery Officer may, for reasons to be recorded in writing, recommend for replacement of the Administrator, in case the Administrator has - a) failed to comply with the terms and conditions of appointment; b) engaged valuers or chartered accountants or such other persons who are ineligible to act so; c) failed to comply with any of the obligations and responsibilities specified under these regulations; d) acted against the instructions of the Recovery Officer or the Board; or e) acted in such manner that is prejudicial to the interest of the investors. (2) Without prejudice to the action under sub-regulation (1), the Recovery Officer may recommend for initiation of appropriate action under the Act. (3) On receipt of such recommendation or suo moto, the Board may take appropriate action against the Administrator or such intermediary or such other person engaged by the Administrator, under the Act including the following: (a) remove such Administrator from the Panel; (b) forward the matter to the Insolvency and Bankruptcy Board of India for appropriate action against the Administrator who is an Insolvency Resolution Professional; and (c) issue suitable directions restraining such person from engaging in activities in the securities market in his professional capacity. (4) The Board shall replace an Administrator in the event his registration with the Insolvency and Bankruptcy Board of India is cancelled or suspended.