SECURITIES AND EXCHANGE BOARD OF INDIA
(APPEAL TO CENTRAL GOVERNMENT) RULES, 1993)
GSR 362(E), dated 2-4-1993

THE EXTRAORDINARY GAZETTE OF INDIA
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF ECONOMIC AFFAIRS)
NOTIFICATION, NEW DELHI 10th JULY, 1995

SECURITIES AND EXCHANGE BOARD OF INDIA
(APPEAL TO CENTRAL GOVERNMENT) RULES, 1993

GSR 362(E), dated 2-4-1993

In exercise of the powers conferred by section 29 read with section 20 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Central Government hereby makes the following rules, namely:-

Short title and commencement

1. (1) These rules may be called the Securities and Exchange Board of India (Appeal to the Central Government) Rules, 1993.

(2) They shall come into force on the date of their publication in the Official Gazette.

Definitions

2. In these rules, unless the context otherwise requires -

(a) "Act" means the Securities and Exchange Board of India Act, 1992 (15 of 1992);

(b) "Authorised representative" means

(a) in relation to an appellant, a person duly authorised by the appellant to present an appeal on his behalf to the Central Government;

(b) in relation to the Board, person duly appointed by the Board by notification in the Official Gazette as authorised representative to appear, plead and act for such authority in any such appeal and any other person acting on behalf of the person so appointed;

(c) "Board" means the Securities and Exchange Board of India established under section 3 of the Act;

(d) "Form" means the form appended to these rules;

(e) "regulations" means the regulations made by the Board under the Act;

(f) "rules" means the rules made under the Act.

Form of Appeal

3. Any person aggrieved by an Order of the Board made under the Act or the rules or regulations made thereunder, may prefer an appeal to the Central Government in the Form.

Time within which appeal is to preferred

4. (1) An appeal shall be preferred by the aggrieved person within a period of thirty days from the date of communication to him of the order of the Board made under the Act or rules or regulations.

(2) When the appeal is preferred after the expiry of the period of thirty days specified in sub- rule (1), it shall be accompanied by an application supported by an affidavit setting forth the facts on which the appellant relies to satisfy the Central Government that he has sufficient cause for not preferring the appeal within the said period of thirty days:

Provided that if the Central Government is satisfied that the appellant had sufficient cause for not preferring the appeal within the aforesaid period, it may; for reasons to be recorded in writing, admit the appeal after the expiry of the aforesaid period but before the expiry of 45 days from the date of communication to him of the order of the Board.

Payment of fees

5.(1) Every appeal shall be accompanied by a fee of rupees five hundred only.

(2) The amount of fees shall be deposited in the nearest branch of the State Bank of India.

(3) The amount of the fees shall be deposited under the head "065- other Admn. Services - Other Services - Other Receipts".

Contents of appeal

6. Every appeal filed under rule 3 shall be written in English or Hindi and shall set forth concisely under distinct heads, the grounds of appeal without any argument or narrative and such grounds, shall be numbered consecutively.

What to accompany form

7. Every appeal shall be filed in the Form in duplicate and shall be accompanied by two copies (at least one of which shall be certified copy) of the order of the Board appealed against and other documents to support the grounds of objection mentioned in the appeal.

Explanation:-

For the purpose of this rule "certified copy" includes the copy which was originally supplied to the appellant as well as a photostat copy thereof duly authenticated by the appellant or his authorised representative as a true copy.

Filing of affidavits

8. Where a fact which cannot be borne out by, or is contrary to, the record is alleged, it shall be stated clearly and concisely and supported by a duly sworn affidavit.

Rights of Appellant to appear before the Central Government

9. (1) Every appellant may appear before the Central Government in person or through his authorised representative.

(2) An appellant may, by writing, authorise -

(i) an advocate, or

(ii) a Chartered Accountant, or

(iii) a Cost and Works Accountant, or

(iv) a Company Secretary, having prescribed qualification under clause (45) of section 2 of the Companies Act, 1956 (1 of 1956)

to function as authorised representative of such party.

Authorising a representative to appear

10. In an appeal by an appellant, where the Form is signed by his authorised representative, the appellant shall append to the Form documents authorising the authorised representative to appear for him and the said document shall state what his relationship is with the appellant.

Authorisation to be filed

11. An authorised representative appearing for the appellant at the hearing of an appeal shall, unless the document referred to in rule 10 has been appended, filed such a document before the commencement of the hearing.

Procedure for filing appeal

12. (1) An appeal shall be preferred by the appellant or his authorised representative to the Central Government in person or be sent by Registered Post registered to the Secretary to the Government of India, Department of Economic Affairs, Ministry of Finance, New Delhi

(2) An appeal sent by post under sub-rule (1) shall be deemed to have been preferred to the Central Government on the day on which it is received in the office of the Secretary to the Government of India, Department of Economic Affairs, Ministry of Finance, at Delhi.

Furnishing of information and documents

13. (1) The Central Government may, before considering the appeal, require the appellant or the Board or both to furnish such further information and documents as it considers necessary.

(2) Parties concerned shall furnish such information and documents within 30 days of such order.

Date and place of hearing of appeal to be communicated

14. The Central Government shall communicate, before considering the appeal, to the appellant or the Board or both the date and place of the hearing of the appeal and may send a copy of the appeal to the Board either before or with such communication.

Hearing of appeal

15. (1) On the day fixed or on any other day to which the hearing may be adjourned, the appellant shall be heard in support of the appeal. The Central Government shall, then, if necessary, hear the Board of its authorised representative against the appeal and in such case the appellant shall be entitled to reply.

(2) In case the appellant does not appear in person or through an authorised representative when the appeal is called for hearing, the Central Government may dispose of the appeal on merits:

Provided that where an appeal has been disposed of as provided above and the appellant appears afterwards and satisfies the Central Government that there was sufficient cause for his non-appearance, when the appeal was called for hearing, the Central Government shall make an order setting aside the ex parte order and restore the appeal.

Orders by the Central Government

16. The Central Government shall, -

(a) after considering the appeal preferred to it under rule 3;

(b) after considering further documentary evidence referred to in rule 13, and

(c) after giving hearing under rule 15,

pass such orders or give such directions as may be necessary or expedient to give effect to, or in relation to, its orders.

Order to be signed and dated

17. The Order of the Central Government shall be in writing and shall be signed and dated.

Order to be communicated to the party

18. The Central Government shall, after the order is signed, cause it to be communicated to the appellant and to the Board.

FORM
SECURITIES AND EXCHANGE BOARD OF INDIA
(APPEAL TO THE CENTRAL GOVERNMENT) RULES, 1992
(SEE RULE 3)
FORM OF APPEAL

From

(Mention the name and address of the appellant here)

To

The Secretary to the Government of India,
Department of Economic Affairs
Ministry of Finance, North Block
New Delhi.

Sir,

The appellant name above, begs to prefer this appeal under section 20 of the Securities and Exchange Board of India Act, 1992 (15 of 1992) against Order No. .......... dated ........... passed by the Securities and Exchange Board of India under the said Act, ..... Rules* ...... and Regulation ** ........ on the following facts and grounds.

FACTS

(Mention briefly the facts of the case here. Enclose copy of the order passed by the Board and copies of letters written by the appellant to the Board and copies of other relevant documents, if any).

GROUND

(Mention here the grounds on which the appeal is made).

PRAYER

In the light of what is stated above, the appellant prays that he/she/it may be granted the following relief.

RELIEF SOUGHT

(specify the relief sought)

The amount of Rs. Five Hundred as fees for this appeal has been deposited in ..... vide receipt No. ............ dated ...................

List of documents attached:

* Indicate the relevant rule.

** Indicate the relevant regulation.

[Issued by the Ministry of Finance, Department of Economic Affairs vide Notification under F.N.20/21/SE-92 dated 2-4-1993; Published in Part II, Section 3(1) of Gazette of India, Extraordinary dated 2-4-1993]

Notification issued under rule 29(b)

Appointment of authorised representatives by SEBI - Notification No.LE/101/5/93, dated 18th August, 1993

In pursuance of clause (b) of rule 2 of the Securities and Exchange Board of India (Appeal to the Central Government) Rules, 1992, the Board hereby appoints its Executive Directors and General Counsel, and any other officer of the Board authorise by such Directors or Counsel to act on their behalf, as the authorised representative for the purposes of the said clause.

TO BE PUBLISHED IN PART II, SECTION 3 SUB-SECTION (i)
THE EXTRAORDINARY GAZETTE OF INDIA
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF ECONOMIC AFFAIRS)
NOTIFICATION, NEW DELHI 10th JULY, 1995

GSR- In exercised of the powers conferred by clause (da) of sub-section (2) of section 29 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Central Government hereby makes the following rules for holding inquiry for the purpose of imposing penalty under Chapter VI-A of the said Act , namely:-

Short title and commencement
1.(1) These rules may be called the Securities and Exchange Board of India (Procedure for holding inquiry and imposing penalties by adjudicating officer ) Rules, 1995.
(2) They shall come into force on the date of their publication in the Official Gazette.

Definition

2. In these rules, unless the context otherwise requires:-

(a) "Act" means the Securities and Exchange Board of India Act, 1992 (15 of 1992);
(b) "adjudicating officer" means the officer appointed by the Board as adjudicating offer under section 15L of the Act;
(c) "inquiry" means the inquiry referred in section 15-I.

Appointment of adjudicating officer for holding inquiry
3. Whenever the Board is of the opinion that there are grounds for adjudging under any of the provisions in Chapter VIA of the Act, it may appoint any of its officer not below the rank of Division Chief to be an adjudicating officer for holding an inquiry for the said purpose.

Holding of inquiry

(1) In holding an inquiry for the purpose of adjudging under section 15A, 15B, 15C, 15D, 15E, 15F, 15G and 15H whether any person has committed contraventions as specified in any of the sections 15A, 15B, 15C, 15D, 15E, 15F, 15G and 15H, the adjudicating officer shall, in the first instance, issue a notice to such person requiring him to show cause within such period as may be specified in the notice (being not less than fourteen days from the date of service thereof) why an inquiry should not be held against him.
(2) Every notice under sub-rule (1) to any such person shall indicate the nature of offence alleged to have been committed by him.
(3) If after considering the cause, if any, shown by such person, the adjudicating officer is of the opinion that an inquiry should be held, he shall issue a notice fixing a date for the appearance of that person either personally or through his lawyer or other authorised representative.
(4) On the date fixed, the adjudicating officer shall explain to the person proceeded against or his lawyer or authorised representative, the offence, alleged to have been committed by such person indicating the provisions of the Act, rules or regulations in respect of which contravention is alleged to have taken place.
(5) The adjudicating officer shall then give an opportunity to such person to produce such documents or evidence as he may consider relevant to the inquiry and if necessary the hearing may be adjourned to a future date and in taking such evidence the adjudicating officer shall not be bound to observe the provisions of the Evidence Act, 1872 (11 of 1872);
Provided that the notice referred to in sub-rule (3), and the personal hearing referred to in sub-rules (3), (4) and (5) may, at the request of the person concerned, be waived.
(6) While holding an inquiry under this rule the adjudicating officer shall have the power to summon and enforce the attendance of any person acquainted with the facts and circumstances of the case to give evidence or to produce any document which in the opinion of the adjudicating officer may be useful for or relevant to the subject matter of the inquiry.
(7) If any person fails, neglects or refuses to appear as required by sub-rule (3) before the adjudicating officer, the adjudicating officer may proceed with the inquiry in the absence of such person after recording the reasons for doing so.

Order of adjudicating officer

5. (1) if, upon consideration of the evidence produced before the adjudicating officer, the adjudicating officer is satisfied that the person has become liable to penalty under any of the sections specified in sub-section (1) of section 15-1, he may, by order in writing, impose such penalty as he thinks fit in accordance with the provisions of the relevant section or sections specified in section 15-I.
(2) While adjudging the quantum of penalty under section 15-I, the adjudicating officer shall have due regard to the following factors namely;

(a) The amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default;
(b) the amount of loss caused to an investor or group of investors as a result of the default;
(c) the repetitive nature of any default.

(3) Every order made under sub-rule (1) shall specify the provisions of the Act in respect of which default has taken place and shall contain brief reasons for such decision.
(4) Every such order shall be dated and signed by the adjudicating officer.

Copy of the order

6. The adjudicating officer shall send a copy of every order made under rules by it to person concerned and to the Board.

Service of notices and order

7. A notice or an order issued under these rules shall be served on the person in the following manner, that is to say:-

(a) by delivering or tendering it to that person or his duly authorised agent;
(b) by sending it to the person by registered post with acknowledgement due to the address of his place of residence or his last known place of residence or the place where he carried on, or last carried on, business or personally works, or last worked, for gain; or
(c) if it cannot be served under clause (a) or clause (d), by affixing it on the outer door or some other conspicuous part of the premises in which that person resides or is known to have last resided, or carried on business or personally works or last worked for gain and that written report thereof should be witnessed by two persons.