Regulation 26 - Liability for action in case of default - Securities and Exchange Board of India (Custodian) Regulations, 1996

CHAPTER V PROCEDURE FOR ACTION IN CASE OF DEFAULT 1 [Liability for action in case of default. 26. A 3 [ custodian ] who- (a) contravenes any of the provisions of the Act, the rules framed thereunder or these regulations; (b) fails to furnish any information relating to his activity as 3 [ custodian ] as required by the Board; (c) furnishes to the Board information which is false and misleading in any material particular; (d) does not submit periodic returns or reports as required by the Board; (e) does not co-operate in any enquiry or inspection conducted by the Board; (f) fails to update its systems and procedures as recommended by the Board; (g) fails to resolve the complaints of clients or fails to give a satisfactory reply to the Board in this behalf; (h) is guilty of misconduct or makes a breach of the Code of Conduct specified in the Third Schedule; (i) fails to pay annual fees, shall be dealt with in the manner provided under 2 [ Chapter V of the Securities and Exchange Board of India (Intermediaries) Regulations, 2008 ].] ************ NOTES:- 1 Substituted by the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002, w.e.f. 27-9-2002. Prior to its substitution, regulation 26 read as under: 26. Suspension of certificate.─ The Board may suspend the certificate granted to a custodian of securities where the custodian of securities: (a) contravenes any of the provisions of the Act, the rules framed thereunder or these regulations; (b) fails to furnish any information relating to his activity as custodian of securities as required by the Board; (c) furnishes to the Board information which is false and misleading in any material particular; (d) does not submit periodic returns or reports as required by the Board; (e) does not co-operate in any enquiry or inspection conducted by the Board; (f) fails to update its systems and procedures as recommended by the Board; (g) fails to resolve the complaints of clients or fails to give a satisfactory reply to the Board in this behalf; (h) is guilty of misconduct or makes a breach of the Code of Conduct specified in the Third Schedule; (i) fails to pay annual fees. 2. Substituted vide SEBI (Intermediaries) Regulations, 2008, w.e.f. 26-5-2008 before it was read as, the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 3. Substituted vide NOTIFICATION No. SEBI/LAD-NRO/GN/2019/01 dated 01-01-2019 before it was read as custodian of securities