SEBI (Procedure for Holding Inquiry and Imposing Penalties)

Securities and Exchange Board of India (SEBI) (Procedure for Holding Inquiry and Imposing Penalties) (Amendment) Rules, 2021.

G.S.R. 919(E).—In exercise of the powers conferred by clauses (da) and clause (f) 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 further to amend the Securities and Exchange Board of India (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995, namely:-

1. (1) These rules may be called the Securities and Exchange Board of India (Procedure for Holding Inquiry and Imposing Penalties) (Amendment) Rules, 2021.
   (2) They shall come into force on the date of their publication in the Official Gazette.
   
2. In the Securities and Exchange Board of India (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995,–
   
   (i) in rule 2, in clause (b), for the word, figures and letter “section 15L”, the word, figures and letter “section 15I” shall be substituted;
   
   (ii) for rule 7, the following rule shall be substituted, namely:-
   “7. Service of notices and orders.–
   (1) A notice or an order issued under these rules shall be served on the person through any of the following modes, namely:–
   (a) by delivering or tendering it to that person or his duly authorised agent; or
   (b) by sending it to the person by fax or electronic mail or electronic instant messaging services along with electronic mail or by courier or speed post or registered post:
   Provided that the courier or speed post or registered post shall be sent 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, with acknowledgment due:
   Provided further that a notice sent by fax shall bear a note that the same is being sent by fax and in case the document contains annexure, the number of pages being sent shall also be mentioned:
   Provided also that a notice sent through electronic mail or electronic instant messaging services along with electronic mail shall be digitally signed by the competent authority and bouncing of the electronic mail shall not constitute valid service.
   
   (2) In case of failure to serve a notice or an order through any one of the modes provided under subrule (1), the notice or order may be affixed on the outer door or some other conspicuous part of the premises in which the person resides or is known to have last resided, or carried on business or personally works, or last worked, for gain and a written report thereof shall be prepared in the presence of two witnesses.
   
   (3) In case of failure to affix the notice or order on the outer door as provided under sub-rule (2), the notice or order shall be published in at least two newspapers, one of which shall be in an English daily newspaper having nationwide circulation and another shall be in a newspaper having wide circulation published in the language of the region where that person was last known to have resided or carried on business or personally worked for gain.

Note : The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, subsection(i), vide notification number G.S.R. 541 ( E), dated the 10th July, 1995 and subsequently amended vide notification numbers as under:
(1) S.O. 1961 ( E), dated the 14th November, 2006;
(2) G.S.R. 430 (E), dated the 28th May, 2015; and
(3) G.S.R. 210 (E), dated the 08th March, 2019

Notification

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