Para 4 - Making of application - SEBI (Aid for Legal Proceedings) Guidelines, 2009

Making of application 4. (1) Any Investors Association may make an application to the Board seeking aid for undertaking legal proceedings. Clarification: Different stages of a case, such as review or appeal before the same or another court shall require separate application from the Investors Association and separate approval from the Board. (2) In case legal proceedings relates to mis-statement, misrepresentation or omission in connection with the issue, sale or purchase of securities, the application shall establish that: i. the investors relied upon such mis-statement, misrepresentation or omission; ii. such mis-statement, misrepresentation or omission caused monetary loss to the investors. (3) The application shall inter alia contain the following: i. A tabular statement of investors who are affected, and the number of securities held by each such investor; ii. A statement containing details of the cause of action and how the investors are affected; iii. A statement that at least one thousand investors have legally enforceable cause of action; iv. Name of solicitor and/or advocate or both who have been or are proposed to be engaged; v. An itemized estimate of expenses for the legal proceedings. vi. an undertaking that aid for the particular legal proceedings has not been/would not be sought from any other source.