Regulation 31 to 38 - Omitted - Securities And Exchange Board of India (Venture Capital Funds) Regulations, 1996

31 to 38. 1 [* * *] ----------------- Notes: 1. Regulations 31 to 38 omitted by the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002, w.e.f. 27-09-2002. Prior to its omission, Regulations 31 to 38 read as under: 31. Cancellation of certificate.- The Board may cancel the certificate granted to a venture capital fund:- (a) when the venture capital fund is guilty of fraud or has been convicted of an offence involving moral turpitude; (b) the venture capital fund has been guilty of repeated defaults of the nature specified in regulation 30; or Explanation: In this regulation, fraud has the same meaning as is assigned to it in section 17 of the Indian Contract Act, 1872. (9 of 1872) (c) contravenes any of the provisions of the Act or these regulations. 32. Manner of making order of cancellation or suspension.─ No order of suspension or cancellation of certificate shall be made by the Board, except after holding an enquiry in accordance with the procedure specified in regulation 33. 33. Manner of holding enquiry before suspension or cancellation.─( 1) For the purpose of holding an enquiry under regulation 32, the Board may appoint one or more enquiry officers. (2) The enquiry officer shall issue to the venture capital fund, at its registered office or its principal place of business, a notice setting out the grounds on which action is proposed to be taken against it and calling upon it to show cause against such action within a period of fourteen days from the date of receipt of the notice. (3) The venture capital fund may, within fourteen days from the date of receipt of such notice, furnish to the enquiry officer a written reply, together with copies of documentary or other evidence relied on by it or sought by the Board from the venture capital fund. (4) The enquiry officer shall give a reasonable opportunity of hearing to the venture capital fund to enable him to make submissions in support of its reply made under sub-regulation (3). (5) Before the enquiry officer, the venture capital fund may appear through any person duly authorised by the venture capital fund: Provided that no lawyer or advocate shall be permitted to represent the venture capital fund at the enquiry: Provided further that where a lawyer or an advocate has been appointed by the Board as a presenting officer under sub-regulation (6), it shall be lawful for the venture capital fund to present its case through a lawyer or advocate. (6) The enquiry officer may, if he considers it necessary, ask the Board to appoint a presenting officer to present its case. (7) The enquiry officer shall, after taking into account all relevant facts and submissions made by the venture capital fund, submit a report to the Board and recommend the penal action, if any, to be taken against the venture capital fund as also the grounds on which the proposed action is justified. 34. Show-cause notice and order.─(1) On receipt of the report from the enquiry officer, the Board shall consider the same and may issue to the venture capital fund a show-cause notice as to why the penal action as proposed by the enquiry officer a[or such appropriate action] should not be taken against it. (2) The venture capital fund shall, within fourteen days of the date of the receipt of the show-cause notice, send a reply to the Board. (3) The Board, after considering the reply, if any, of the venture capital fund, shall, as soon as possible pass such order as it deems fit. a. The words or such appropriate action in sub-regulation (1) of regulation 34 were inserted by SEBI (Venture Capital Funds) (Amendment) Regulations, 2000 published in the Official Gazette of India dated 15-09-2000. 35. Effect of suspension and cancellation of certificate .─(1) On and from the date of the suspension of the certificate, the venture capital fund shall cease to carry on any activity as a venture capital fund during the period of suspension, and shall be subject to such directions of the Board with regard to any records, documents or securities that may be in its custody or control, relating to its activities as venture capital fund, as the Board may specify. (2) On and from the date of cancellation of the certificate, the venture capital fund shall, with immediate effect, cease to carry on any activity as a venture capital fund, and shall be subject to such directions of the Board with regard to the transfer of records, documents or securities that may be in its custody or control, relating to its activities as venture capital fund, as the Board may specify. 36. Publication of order of suspension or cancellation.─ The order of suspension or cancellation of certificate passed under regulation 35 may be published by the Board in two newspapers. 37. a[Action against intermediaries ─ The Board may initiate action for suspension or cancellation of registration of an intermediary holding a certificate of registration under section 12 of the Act who fails to exercise due diligence in the performance of its functions or fails to comply with its obligations under these regulations. Provided that no such certificate of registration shall be suspended or cancelled unless the procedure specified in the regulations applicable to such intermediary is complied with. 38. Appeal to the Central Government.─ Any person aggrieved by an order of the Board under these regulations may prefer an appeal to the Securities Appellate Tribunal in accordance with section 15T of the Act.] a. Regulations 37 38 were inserted by SEBI (Venture Capital Funds) (Amendment) Regulations, 2000 w.e.f 15-09-2000.