Regulation 15 - Governing norms of Self Regulatory Organization - Securities and Exchange Board of India (Self Regulatory Organisations) Regulations, 2004

Governing norms of Self Regulatory Organization. 15. (1) A Self Regulatory Organization may, subject to the previous approval of the Board, make governing norms and articles consistent with the provisions of the Act and these regulations. (2) In particular, and without prejudice to the generality of the foregoing power, the governing norms or articles may provide for:- (i) eligibility criteria for admission and removal of members from Self Regulatory Organization; (ii) manner and the periodicity of furnishing information to the Board and to its members; (iii) arbitration mechanism for resolving disputes between members and / or between members and their constituents; (iv) procedure for proceeding against the member committing breach of the governing norms or articles including provisions for suspension or expulsion of members from the Self Regulatory Organization; (v) internal control standards including procedure for inspection, auditing, reviewing, monitoring and surveillance of its members by Self Regulatory Organization; (vi) code of conduct specifying standards for its members in the conduct of business; (vii) procedure for conduct of election of the office bearers and members of the committees; (viii) obligation of members to supply such information or explanation and to produce such documents relating to the business as Board of Directors may require; (ix) manner of disciplinary action against its members by Self Regulatory Organization; (x) contents and format of the annual report; (xi) procedure for conduct of the meetings, quorum etc of Board of Directors; (xii) manner of maintaining accounts or records of the Self Regulatory Organization; and, (xiii) reporting requirements to the Board on monthly basis about various aspects of its functioning including policy initiatives, progress in certification, number of members admitted and disciplinary action taken against members, if any. (3) The governing norms or articles shall also provide that the contravention of any of the governing norms shall render the member of Self Regulatory Organization concerned liable to one or more of the following punishments, namely:- (i) forfeiture of shares; (ii) expulsion from membership; (iii) suspension from membership for a specified period; (iv) any other penalty of a like nature not involving the payment of money. (4) Where the Board considers it expedient so to do, it may, by order in writing, direct a Self Regulatory Organization to make any governing norms or to amend or revoke any of them within such period as it may specify in this behalf. (5) If a Self Regulatory Organization fails or neglects to comply with such order within the specified period, the Board may make, amend or revoke the governing norms either in the form specified in the order or with such modifications as the Board may think fit.