Chapter 17 - MISCELLANEOUS - SEBI (Disclosure and Investor Protection Guidelines) 2000

CHAPTER XVII MISCELLANEOUS 17.0 Directions by the Board 17.1 In case of violation of these Guidelines, the Board may in the interest of the securities market and in the interest of the investors may pass the following directions under section 11B: (a) directing the persons concerned to refund any money collected under an issue to the investors with or without requisite interest, as the case may be. (b) directing the persons concerned not to access the capital market for a particular period. (c) directing the stock exchange concerned not to list or permit trading in the securities. (d) directing the stock exchange concerned to forfeit the security deposit deposited by the issuer company. (e) any other direction which the Board may deem fit and proper in the circumstances of the case. Provided that before issuing any directions the Board may give a reasonable opportunity to the person concerned. Provided further that if any interim direction is sought to be passed, the Board may give post decisional hearing to such person. 17.2 Action against intermediaries 17.2.1 The Board may initiate action including for suspension or cancellation of certificate of registration of any intermediary who fails to exercise due diligence or who fails to comply with the obligations entrusted under the guidelines or who is alleged to have violated any of these Guidelines. Provided that no such certificate of registration shall be suspended or cancelled unless the procedure specified in the regulations applicable to such intermediary is followed. 1 (17.2A Exemption 17.2A.1 The Board may grant exemption from the application of any particular provision(s) of these guidelines: (a) on an application made by any listed company or intermediary connected with the issue; (b) of a technical violation or a possible technical violation; or, (c) on being satisfied that the violation was caused or may be caused due to factors beyond the control of the applicant.) 17.3 Repeal and Saving 17.3.1 The Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines, 1992 and the clarifications issued from time to time are hereby repealed. 17.3.2 Notwithstanding such repeal:- (a) Anything done or any action taken or purported to have been done or taken including observation made in respect of any draft offer document, any enquiry or investigation commenced or show cause notice issued in respect of the said guidelines shall be deemed to have been done or taken under the corresponding provisions of these guidelines; (b) Any application made to the Board under the said Guidelines and pending before it shall be deemed to have been made under the corresponding provisions of these Guidelines. ******** 1 Inserted clauses 17.2A and 17.2A.1 vide SEBI Circular No. RMB (Compendium) Series Circular No. 10 dated June 2, 2003.