Regulation 21 - Power of the Board to call for periodical returns or direct inquiries to be made - Securities and Exchange Board of India (Self Regulatory Organisations) Regulations, 2004

Power of the Board to call for periodical returns or direct inquiries to be made. 21. (1) Every Self Regulatory Organization shall furnish to the Board such periodical returns relating to its affairs as may be specified. (2) Every Self Regulatory Organization and every member thereof shall maintain and preserve for such periods such books of account and other documents as the Board after consultation with Board of Directors of Self Regulatory Organization concerned, may specify in the interests of the trade or in the public interest and such books of account and other documents shall be subject to inspection at all reasonable times by the Board. (3) Without prejudice to the provisions contained in sub-regulation (1) and (2), if the Board is satisfied that it is in the interests of the trade or in the public interest so to do, it may, by order, in writing, - (a) call upon Board of Directors of a Self Regulatory Organization or any member thereof to furnish in writing such information or explanation relating to the affairs of the Self Regulatory Organization or of the member in relation to the Self Regulatory Organization as the Board may require; or (b) appoint one or more persons to make an inquiry in the prescribed manner in relation to the affairs of a Self Regulatory Organization or the affairs of any members of the Self Regulatory Organization in relation to the Self Regulatory Organization and submit a report of the result of such inquiry to the Board within such time as may be specified in the order or, in the case of inquiry in relation to the affairs of any of the members of a Self Regulatory Organization direct Board of Directors to make the inquiry and submit its report to the Board. (4) Where an inquiry in relation to the affairs of a Self Regulatory Organization or the affairs of any of its members in relation to the Self Regulatory Organization has been undertaken under sub-regulation (3), - (a) the Chairman, every director, manager, secretary, or other officer of the Self Regulatory Organization. (b) every member of such Self Regulatory Organization. (c) if the member of the Self Regulatory Organization is a firm, every partner, manager, secretary or other officer of the firm; and, (d) every other person or body of persons who has had dealings in the course of business with any of the persons mentioned in clause (a), (b) or (c) whether directly or indirectly; shall be bound to produce before the authority making the inquiry all such books of account, and other documents in his custody or power relating to or having a bearing on the subject matter of such inquiry and also furnish to the authority such statement or information as he may require within such time as may be specified by him.