SCHEDULE - THE SCHEDULE [See regulation 21] - Securities And Exchange Board of India (Procedure For Holding Enquiry By Enquiry Officer And Imposing Penalty) Regulations, 2002

THE SCHEDULE [See regulation 21] PART -I AMENDMENT TO THE SECURITIES AND EXCHANGE BOARD OF INDIA (STOCK- BROKERS AND SUB-BROKERS) REGULATIONS, 1992 1. In regulation 2, clause (aaa) shall be omitted. 2. For regulation 23, the following regulation shall be substituted, namely :- Action on inspection or investigation report 23. The Board or the Chairman shall after consideration of inspection or investigation report take such action as the Board or Chairman may deem fit and appropriate including action under the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002. 3. For regulation 25, the following regulation shall be substituted, namely:- Liability for action in case of default 25. A stock-broker who (a) fails to comply with any conditions subject to which registration has been granted; (b) contravenes any of the provisions of the Act, rules or regulations; (c) contravenes the provisions of the Securities Contracts (Regulation) Act or the rules made thereunder; (d) contravenes the provisions of the Depositories Act, 1996 or the rules made thereunder; (e) contravenes the rules, regulations or bye-laws of the stock exchange, shall be dealt with in the manner provided under the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002. 4. Regulations 26 to 32 shall be omitted. PART III AMENDMENT TO THE SECURITIES AND EXCHANGE BOARD OF INDIA (PORTFOLIO MANAGERS) REGULATIONS, 1993 1. In regulation 2, clause (a) shall be omitted. 2. For regulation 28, the following regulation shall be substituted, namely: - Action on inspection or investigation report 28. The Board or the Chairman shall after consideration of inspection or investigation report take such action as the Board or Chairman may deem fit and appropriate including action under the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002. 3. For regulation 30, the following regulation shall be substituted, namely :- 30. Liability for action in case of default - A portfolio manager who- (a) fails to comply with any conditions subject to which certificate has been granted; (b) contravenes any of the provisions of the Act, rules or regulations, shall be dealt with in the manner provided under the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002. 4. Regulations 31 to 38 shall be omitted. PART IV AMENDMENT TO THE SECURITIES AND EXCHANGE BOARD OF INDIA (REGISTRARS TO AN ISSUE AND SHARE TRANSFER AGENTS) REGULATIONS, 1993 1. In regulation 2, clause (b) shall be omitted. 2. For regulation 20, the following regulation shall be substituted, namely:- Action on inspection or investigation report 20. The Board or the Chairman shall after consideration of inspection or investigation report take such action as the Board or Chairman may deem fit and appropriate including action under the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002. 3. For regulation 22, the following regulation shall be substituted, namely:- Liability for action in case of default 22. A registrar to an issue or share transfer agent who- (a) fails to comply with any conditions subject to which registration has been granted; (b) contravenes any of the provisions of the Act, rules or regulations; (c) contravens the provisions of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) or the rules made thereunder; (d) contravenes the provisions of the Depositories Act, 1996 or the rules made thereunder; (e) contravenes the rules, regulations or bye-laws of the stock exchange, shall be dealt with in the manner provided under the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalties) Regulations, 2002. 4. Regulations 23 to 29 shall be omitted. PART V AMENDMENT TO THE SECURITIES AND EXCHANGE BOARD OF INDIA (UNDERWRITERS) REGULATIONS, 1993 1. In regulation 2, clause (a) shall be omitted. 2. For regulation 23, the following regulation shall be substituted, namely;- 23. Action on inspection or investigation report - The Board or the Chairman shall after consideration of inspection or investigation report take such action as the Board or Chairman may deem fit and appropriate including action under the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 . 3. For regulation 25, the following regulation shall be substituted, namely:- 25. Liability for action in case of default - An underwriter or a stock broker or a merchant banker entitled to carry on business of underwriting who - (a) fails to comply with any conditions subject to which certificate has been granted; (b) contravenes any of the provisions of the Act, rules or regulations, shall be dealt with in the manner provided under the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002. 4. Regulations 26 to 32 shall be omitted. PART VI AMENDMENT TO THE SECURITIES AND EXCHANGE BOARD OF INDIA (DEBENTURE TRUSTEES) REGULATIONS, 1993 1. In regulation 2, clause (b) shall be omitted. 2. For regulation 23, the following regulation shall be substituted, namely:- 23. Action on inspection or investigation report The Board or the Chairman shall after consideration of inspection or investigation report take such action as the Board or Chairman may deem fit and appropriate including action under the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002. 3. For regulation 25, the following regulation shall be substituted, namely:- 25. Liability for action in case of default A debenture trustee who- (a) fails to comply with any conditions subject to which certificate has been granted; (b) contravenes any of the provisions of the Act, rules or regulations; (c) contravenes the provisions of the Companies Act or the rules made thereunder, shall be dealt with in the manner provided under the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002. 4. Regulations 26 to 32 shall be omitted. PART VII AMENDMENT TO THE SECURITIES AND EXCHANGE BOARD OF INDIA (BANKERS TO AN ISSUE) REGULATIONS, 1994 1. In regulation 2, clause (a) shall be omitted. 2. For regulation 22, the following regulation shall be substituted, namely;- 22. Action on inspection or investigation report - The Board or the Chairman shall after consideration of inspection or investigation report take such action as the Board or Chairman may deem fit and appropriate including action under the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002. 3. For regulation 23, the following regulation shall be substituted, namely:- 23. Liability for action in case of default - A banker to an issue who- (a) fails to comply with any conditions subject to which certificate has been granted; (b) contravenes any of the provisions of the Act, rules or regulations, shall be dealt with in the manner provided under the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002. 4. Regulations 24 to 31 shall be omitted. PART VIII AMENDMENT TO THE SECURITIES AND EXCHANGE BOARD OF INDIA (FOREIGN INSTITUTIONAL INVESTORS) REGULATIONS, 1995 1. In regulation 2, clause (e) shall be omitted. 2. For regulation 21, the following regulation shall be substituted, namely:- 21. Liability for action in case of default - A Foreign Institutional Investor who- (a) fails to comply with any condition subject to which certificate has been granted; (b) contravenes any of the provisions of the Act, rules or regulations, shall be dealt with in the manner provided under the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002. 3. Regulations 22 to 29 shall be omitted. PART IX AMENDMENT TO THE SECURITIES AND EXCHANGE BOARD OF INDIA (CUSTODIAN OF SECURITIES) REGULATIONS, 1996 1. In regulation 2, clause (g) shall be omitted. 2. For regulation 25, the following regulation shall be substituted, namely:- 25. Action on inspection or investigation report - The Board or the Chairman shall after consideration of inspection or investigation report take such action as the Board or Chairman may deem fit and appropriate including action under the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002. 3. For regulation 26, the following regulation shall be substituted, namely:- 26. Liability for action in case of default - A custodian of securities who - (a) contravenes any of the provisions of the Act, the rules framed thereunder or these regulations; (b) fails to furnish any information relating to his activity as custodian of securities as required by the Board; (c) furnishes to the Board information which is false and misleading in any material particular; (d) does not submit periodic returns or reports as required by the Board; (e) does not co-operate in any enquiry or inspection conducted by the Board; (f) fails to update its systems and procedures as recommended by the Board; (g) fails to resolve the complaints of clients or fails to give a satisfactory reply to the Board in this behalf; (h) is guilty of misconduct or makes a breach of the Code of Conduct specified in the Third Schedule; (i) fails to pay annual fees, shall be dealt with in the manner provided under the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002. 4. Regulations 27 to 32 shall be omitted. PART X AMENDMENT TO THE SECURITIES AND EXCHANGE BOARD OF INDIA (DEPOSITORIES AND PARTICIPANTS) REGULATIONS, 1996 1. In regulation 2, clause (c) shall be omitted. 2. For regulation 63, the following regulation shall be substituted, namely:- 63. Action on inspection or investigation report The Board or the Chairman shall after consideration of inspection or investigation report take such action as the Board or Chairman may deem fit and appropriate including action under the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002. 3. For regulation 64, the following regulation shall be substituted, namely:- 64. Liability for action in case of default - A depository or a participant who contravenes any of the provisions of the Act, the Depositories Act, the bye-laws, agreements and these regulations; fails to furnish any information relating to its activity as a depository or participant as required under these regulations; does not furnish the information called for by the Board under clause (a) of sub-section (1) of section 18 of the Depositories Act or furnishes information which is false or misleading in any material particular; does not co-operate in any inspection or investigation or enquiry conducted by the Board; fails to comply with any direction of the Board issued under section 18 of the Depositories Act; fails to pay the annual fee referred to in regulation 8, shall be dealt with in the manner provided under the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002. 4. Regulations 65 to 69 shall be omitted. PART XI AMENDMENT TO THE SECURITIES AND EXCHANGE BOARD OF INDIA (VENTURE CAPITAL FUNDS ) REGULATIONS, 1996 1. In regulation 2, clause (e) shall be omitted. 2. Sub regulations (1) and (2) of regulation 29 shall be omitted and sub- regulation (3) of that regulation shall be re-numbered as regulation 29. 3. For regulation 30, the following regulation shall be substituted, namely:- 30. Liability for action in case of default Without prejudice to the issue of directions or measure under regulation 29, a venture capital fund which- (a) contravenes any of the provisions of the Act or these regulations; (b) fails to furnish any information relating to its activity as a venture capital fund as required by the Board; (c) furnishes to the Board information which is false or misleading in any material particular; (d) does not submit periodic returns or reports as required by the Board; (e) does not co-operate in any enquiry, inspection or investigation conducted by the Board; (f) fails to resolve the complaints of investors or fails to give a satisfactory reply to the Board in this behalf, shall be dealt with in the manner provided in the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulation, 2002. 4. Regulations 31 to 38 shall be omitted. PART XII AMENDMENT TO THE SECURITIES AND EXCHANGE BOARD OF INDIA (MUTUAL FUND) REGULATIONS, 1996 1. In regulation 2, clause (k) shall be omitted. 2. For regulation 65, the following regulation shall be substituted, namely :- 65. Action on inspection or investigation report The Board or the Chairman shall after consideration of inspection or investigation report take such action as the Board or Chairman may deem fit and appropriate including action under the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002. 3. For regulation 68, the following regulation shall be substituted, namely:- 68. Liability for action in case of default A mutual fund which - (a) contravenes any of the provisions of the Act and these regulations; (b) fails to furnish any information or furnishes wrong information relating to its activity as a mutual fund as required under these regulations; (c) fails to submit periodical returns as required under these regulations; (d) does not co-operate in any inquiry or inspection conducted by the Board; (e) fails to comply with any directions of the Board issued under the provisions of the Act or the regulations; (f) fails to resolve the complaints of the investors or fails to give a satisfactory reply to the Board in this behalf; (g) indulges in unfair trade practices in securities: Explanation- For the purposes of this clause unfair trade practices has the same meaning as in the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 1995; (h) is guilty of misconduct or improper or unbusinesslike or unprofessional conduct which is not in accordance with the Code of Conduct specified in the Fifth Schedule; (i) asset management company fails to maintain the net worth in accordance with the provisions of regulation 21; (j) fails to pay any fees; (k) violates the conditions of registration; (l) mutual fund, asset management company or trustees of that mutual fund does not carry out its obligations as specified in these regulations, shall be dealt with in the manner provided under the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002. 4. Regulations 69 to 74 shall be omitted. PART XIII AMENDMENT TO THE SECURITIES AND EXCHANGE BOARD OF INDIA (CREDIT RATING AGENCIES) REGULATIONS, 1999 1. In regulation 2, clause (j) shall be omitted. 2. For regulation 33, the following regulation shall be substituted, namely :- 33. Action on inspection or investigation report - The Board or the Chairman shall after consideration of inspection or investigation report take such action as the Board or Chairman may deem fit and appropriate including action under the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002. 3. For regulation 34, the following regulation shall be substituted, namely:- 34. Liability for action in case of default - A credit rating agency which- (a) fails to comply with any condition subject to which a certificate has been granted; (b) contravenes any of the provisions of the Act or these regulations or any other regulations made under the Act, shall be dealt with in the manner provided under the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002. 4. Regulations 35 to 42 shall be omitted. PART XIV AMENDMENT TO THE SECURITIES AND EXCHANGE BOARDOF INDIA (COLLECTIVE INVESTMENT SCHEMES) REGULATIONS, 1999 1. For regulation 56, the following regulation shall be substituted, namely:- 56. Action on inspection or investigation report - The Board or the Chairman shall after consideration of inspection or investigation report take such action as the Board or Chairman may deem fit and appropriate including action under the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002. 2. Regulation 58 shall be omitted. 3. For regulation 59, the following regulation shall be substituted, namely:- 59. Liability for action in case of default - In case a Collective Investment Management Company - (a) contravenes any provision of the Act or these regulations; (b) for the purposes of these regulations furnishes any information which is false or misleading or suppresses any material information; (c) does not co-operate in any inspection, investigation or inquiry conducted by the Board under the Act or these regulations; (d) fails to comply with any directions issued by the Board under the Act or the regulations; (e) fails to resolve the complaints of the investors or fails to furnish to the Board a satisfactory reply in this behalf when called upon to do so by the Board; (f) commits a breach of any provision of the Code of Conduct specified in the Third Schedule; (g) fails to pay the fees specified in the Second Schedule; (h) commits a breach of the conditions of registration; or (i) fails to make an application for listing or fails to list units of a scheme in a recognized stock exchange, shall be dealt with in the manner provided in the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002. 4. Regulations 60 to 64 shall be omitted. PART XV AMENDMENT TO THE SECURITIES AND EXCHANGE BOARD OF INDIA (FOREIGN VENTURE CAPITAL FUND) REGULATIONS, 2000 1. In regulation 2, clause (e) shall be omitted. 2. In Regulation 23, for the word the regulation 24 , the words, the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 shall be substituted. 3. Regulations 24 to 27 shall be omitted. [F.No.SEBI/LE/ 23 /2002/18623] G.N.BAJPAI CHAIRMAN SECURITIES AND EXCHANGE BOARD OF INDIA