Power of the Board to order investigation

7. (1) The Board may, suo-motu or upon information received by it, cause an investigation to be made in respect of the conduct and affairs of any person buying, selling or otherwise dealing in securities, by an investigating officer whom the Board considers fit.
Provided that no such investigation shall be made except for the purposes specified in sub-regulation (2).
(2) The purposes referred to in sub-regulation (1) are the following, namely-
(a) to ascertain whether there are any circumstances which would render any person guilty of having contravened any of these regulations or any directions issued thereunder; (b) to investigate into any complaint of any contravention of the regulation, received from any investor, intermediary or any other person;

Procedure for investigation

8. (1) Before causing an investigation to be made under regulation 7 , the Board shall give notice.
(2) Notwithstanding anything contained in sub-regulation (1), where the Board is satisfied that in the interest of the investors or in the public interest, no such notice should be given, it may, by an order in writing and recording the reasons as far as practicable, direct that the investigation be undertaken without such notice.
(3) Subject to the provisions of this regulation, an order passed under regulation 7 shall be a sufficient authority for the Investigating Officer to undertake the investigation and, on production of an authenticated copy of the order, the person concerned shall be bound to carry out the duty imposed in regulation 9

Duty to produce records, etc.

9. (1) It shall be the duty of every person in respect of whom an investigation has been ordered under regulation 8 to produce to the Investigating Officer such books, accounts and other documents in his custody or control and furnish him with such statements and information as the said officer may reasonably require for the purposes of the investigation.
(2) Without prejudice to the generality of the provisions of sub-regulation (1), such person shall -
(a) allow the Investigating Officer to have access to the premises occupied by such person at all reasonable times for the purpose of investigation;
(b) extend to the Investigating Officer reasonable facilities for examining any books, accounts and other documents in his custody or control (whether kept manually or in computer or in any other form) reasonably required for the purposes of the investigation;
(c) provide to such Investigating Officer copies of any such books, accounts and records which, in the opinion of the Investigating Officer, are relevant to the investigation or, as the case may be, allow him to take out computer outprints thereof.

(3) The Investigating Officer shall, for the purpose of investigation, have power to examine orally and to record the statement of the person concerned, any director, partner, member or employee of such person.
(4) It shall be the duty of every person concerned, to give to the Investigating Officer, all such assistance and otherwise extend all such co- operation as may reasonably be required in connection with the investigation and to furnish information relevant to such investigation as may be reasonably sought by such officer.

Submission of Report to the Board

10. The Investigating Officer shall, on completion of the investigation, after taking into account all relevant facts and submissions made by the person concerned, submit a report to the Board.

Power of the Board to issue directions

11. The Board may, after consideration of the report referred to in regulation 10 and after giving reasonable a opportunity of hearing to the person concerned, issue directions for ensuring due compliance with the provisions of the Act, rules and regulations made thereunder, for the purposes specified in regulation 8

Purpose of directions

12. The purposes for which directions under regulation 11 may be issued are the following, namely -
(a) directing the person concerned not to deal in securities in any particular manner;
(b) requiring the person concerned to call upon any of its officers, other employees or representatives to refrain from dealing in securities in any particular manner;
(c) prohibiting the person concerned from disposing of any of the securities acquired in contravention of these regulations;
(d) directing the person concerned to dispose of any such securities acquired in contravention of these regulations, in such manner as the Board may deem fit, for restoring the status-quo ante.

Suspension or cancellation of Registration

13. The Board may, in the circumstances specified in regulation 11 , and without prejudice to its power under regulation 12 , initiate action for suspension or cancellation of registration of an intermediary holding a certificate of registration under section 12 of the Act.
Provided that no such certificate of registration shall be suspended or cancelled unless the procedure specified in the regulation applicable to such intermediary is complied with.