Regulation 15 - Situations when summary procedure to be followed - SECURITIES AND EXCHANGE BOARD OF INDIA (PROCEDURE FOR HOLDING ENQUIRY BY ENQUIRY OFFICER AND IMPOSING PENALTY) REGULATIONS, 2002

CHAPTER III SUMMARY PROCEDURE Situations when summary procedure to be followed 15. It shall not be necessary to hold an enquiry under Chapter II in relation to an intermediary where - (a) such intermediary has been declared insolvent or is wound up; (b) such intermediary fails to pay the registration, renewal or annual fees to the Board as per the provisions of the relevant Regulations; (c) such intermediary, being a Stock-broker, ceases to be a member of a recognised stock exchange or has been declared a defaulter in relation to the transactions at such exchange; 1 [ (ca) such intermediary, being a sub-broker ceases to be a sub-broker consequent upon the stock broker with whom it is affiliated ceasing to be a stock broker due to declaration as defaulter or suspension or cancellation of certificate of registration of the stock broker;] (d) such intermediary fails to obey an order of any adjudication officer imposing a penalty under section 15I of the Act; (e) such intermediary fails to submit documents or records to the Board within the time stipulated by the Board; (f) such intermediary fails to issue contract notes or to enter into agreement as required under the provisions of the relevant Regulations; (g) such intermediary does not satisfy the capital adequacy norms as specified in the relevant Regulations; (h) its proprietor or any of its partners or whole-time directors is convicted by a court of competent jurisdiction of an offence involving moral turpitude; (i) 2 [***] (j) such intermediary admits to have violated the provisions of the relevant Regulations; (k) in any other situation where the facts leading to the violation of the provisions of the relevant Regulations are undisputed: Provided that no action shall be taken against an intermediary without giving an opportunity of making representation to such intermediary. ********** 1. Inserted by the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) (Second Amendment) Regulations, 2004, w.e.f. 02.09.2004. 2. Omitted by the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) (Amendment) Regulations, 2006 w.e.f. 21.08.2006. Prior to its omission clause (i), read as under:- (i) such intermediary surrenders its certificate of registration to the Board;