Regulation 22 to 29 - Omitted by SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 w.e.f. 27.09.2002. - Securities And Exchange Board of India (Foreign Institutional Investors) Regulations, 1995

1 [22 to 29]- Omitted by SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 w.e.f. 27.09.2002. ----------------- Notes: 2. Regulations 22 to 29 omitted by the SEBI (Appeal to Securities Appellate Tribunal) (Amendment) Regulations, 2000 w.e.f. 28.3.2000. Earlier regulation 29 was substituted by the SEBI (Appeal to Securities Appellate Tribunal) (Amendment) Regulations, 2000 w.e.f. 28.3.2000 Prior to its substitution it read as under Any Foreign Institutional Investor aggrieved by an order of the Board under the regulations may prefer an (Appeal to the Central Government) Rules 1993. Earlier these regulations read as under:- Suspension of certificate 22. A penalty of suspension of certificate of a Foreign Institutional Investor may be imposed if he - (a) indulges in fraudulent transactions in securities; (b) fails to furnish any information related to his transaction in securities as required by the Board or the Reserve Bank of India; (c) furnishes false information to the Board; or (d) does not co-operate in any enquiry conducted by the Board. Cancellation of certificate 23. A penalty of cancellation of certificate of a Foreign Institutional Investor may be imposed if he - (a) indulges in deliberate manipulation or price rigging or cornering activities prejudicially affecting the securities market or the investors' interest; (b) is guilty of fraud or a criminal offence, involving moral turpitude; (c) does not meet the eligibility criteria laid down in these regulations; (d) violates the provisions of the Securities and Exchange Board of India (Insider Trading) Regulations, 1992 or of the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Markets) Regulations, 1995, made under the Act; or (e) is guilty of repeated defaults of the nature mentioned in regulation 22. Explanation : In this regulation, fraud shall have the same meaning as is assigned to it in section 17 of the Indian Contract Act, 1872. Manner of making order of suspension and cancellation of certificate 24. No order of penalty of suspension or cancellation of certificate shall be imposed on the Foreign Institutional Investor except after holding an enquiry in accordance with the procedure specified in regulations 25 and 26. Manner of holding enquiry 25. (1) For the purpose of holding the enquiry referred to in regulation 24, the Board may appoint an enquiry officer. (2) The enquiry officer shall issue to the Foreign Institutional Investor a notice at the principal place of business of the Foreign Institutional Investor setting out the default alleged to have been committed by the Foreign Institutional Investor and calling upon him to show cause why the penalties specified in regulation 21 should not be imposed on him. (3) The Foreign Institutional Investor may, within thirty days from the date of receipt of such notice, furnish to the enquiry officer a reply, together with copies of documentary or other evidence relied on by him in support of its reply: Provided that the enquiry officer may call upon him to supply further information. (4) The enquiry officer shall, give a reasonable opportunity of hearing to the Foreign Institutional Investor to enable him to make submission in support of his reply under sub-regulation (3) of this regulation. (5) Before the enquiry officer, the Foreign Institutional Investor may either appear in person or through any person duly authorised by him in writing. (6) If it is considered necessary, the enquiry officer may 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 Foreign Institutional Investor and by the presenting officer, if appointed under sub-regulation (6) above, submit a report to the Board and recommend the penalty if any to be awarded along with the justification for such penalty. Show cause notice and order 26. (1) On receipt of the report from the enquiry officer, the Board shall consider the same and issue a show-cause notice to the Foreign Institutional Investor as to why the penalty, which it considers appropriate and which shall be specified in the notice should not be imposed. (2) The Foreign Institutional Investor shall within twenty-one days of the date of the receipt of the show-cause notice referred to in sub-regulation (1), of this regulation send to the Board a reply to the notice. (3) The Board after considering the reply to the show-cause notice, if received in time, shall as soon as possible but not later than thirty days from the receipt of the reply, if any, pass such order as it deems fit. (4) Every order passed under sub-regulation (3) of this regulation shall be self-contained and give reasons for the conclusions stated therein including the justification for the penalty, if any, imposed by that order. Effect of suspension and cancellation of certificate 27. (1) On and from the date of the suspension of certificate, if ordered under this Chapter, the Foreign Institutional Investor shall cease to buy, sell or otherwise deal in securities in India during the period of suspension. (2) On and from the date of cancellation of certificate, if ordered under this Chapter, the Foreign Institutional Investor shall cease to buy, sell or otherwise deal in securities in India, except for the purpose of liquidating the existing investments. Publication of order of suspension and cancellation of certificate 28. The order of suspension or cancellation of certificate under this Chapter shall be published by the Board in at least two daily newspapers. Appeal to Securities Appellate Tribunal 29. Any person aggrieved by an order of the Board made, on and after the commencement of the Securities Laws (Second Amendment) Act, 1999, (i.e., after 16th December 1999), under these regulations may prefer an appeal to a Securities Appellate Tribunal having jurisdiction in the matter.