SEBI (Procedure for holding inquiry and imposing penalties) rules, 1995

Question 1

In exercise of the powers conferred by ___ of SEBI Act, 1992, the central Government has made the rules regarding holding inquiry.

Answer 1

Section 29 (2) - clause (da) and (f)

Question 2

Inquiry means inquiry referred in ?

Answer 2

Section 11 (4 A), 11 B (2), 15-I

Question 3

Penalties are specified under chapter __ of SEBI Act, 1992?

Answer 3

Chapter VI-A

Question 4

The Board or the Adjudicating officer shall issue to a person a show-cause notice not being less than ____ days from ____ why an inquiry should not be held against him.

Answer 4

14 days from the date of service

Question 5

Every notice sent by the Board or the Adjudicating Officer shall indicate the ___alleged to have been committed

Answer 5

Nature of Offence (NOO)

Question 6

If, after considering the cause, the Board or the Adjudicating Officer is of the opinion that an inquiry should be held , he shall ?

Answer 6

Issue a notice fixing a date for the appearance of that person.

Question 7

The Board or adjudicating officer shall issue a notice for appearance of that person either _ or _ or _

Answer 7

1. Personally
2. His Lawyer
3. Other Authorized representative

Question 8

The Board or the Adjudicating officer shall give an opportunity to such person to produce ____ as he may consider relevant to the inquiry

Answer 8

Such documents or evidence

Question 9

If necessary, the hearing may be adjourned to a __

Answer 9

Future date

Question 10

The Board or the Adjudicating officer shall _____ to observe provisions of the Indian Evidence Act, 1872.

Answer 10

Not be bound

Question 11

The Board may appoint a ______ in an inquiry

Answer 11

PRESENTING OFFICER

Question 12

While holding inquiry, the Board or the Adjudicating Officer shall have the power to summon and enforce the attendance of any person who is ___

Answer 12

Acquainted with the facts and circumstances of the case to:

1. Give evidence , or
2. Produce any document

which may be useful or relevant to, the subject matter matter of the inquiry.

Question 13

If any person fails, neglects, refuses to appear before the Board or the Adjudicating officer , the Board may ?

Answer 13

Proceed with the inquiry in the absence of such a person after recording reasons.

Question 14

While adjudging the penalty, the board shall have regard to :?

Answer 14

1. Amount of disproportionate gain or unfair advantage , wherever quantifiable, made as a result of the default
2. Amount of loss caused to the investor as a result of the default
3. Repetitive nature of the default

Question 15

Every order by the Board or Adjudicating officer shall be ?

Answer 15

Dated and Signed

Question 16

The Board or the Adjudicating Officer may rectify any error apparent on the face of record, either :

1. Own motion, or
2. brought to its notice by the affected person
   within —- days from date of such order

Answer 16

15 days from the date of the order

Question 17

Error apparent on the face of the record means ?

Answer 17

1. Typographical errors that creep in inadvertently
2. Other errors that do not require a long drawn out reasoning process to ascertain such a mistake.

Question 18

The Board or the adjudicating officer shall send a copy of every order made to ?

Answer 18

1. The Board, and
2. Person Concerned

Question 19

A notice or an order shall be served on the person through following modes ?

Answer 19

1. Delivering or tendering it to the Person or his Duly Authorized Agent
2. Sending it to the person by Fax, electronic mail, electronic instant messaging services along with electronic mail, courier, speed post or registered post

Question 20

Notice sent by fax shall bear a note that ?

Answer 20

The same is being sent by fax

Question 21

If the document contains an annexure, the ___ has to be mentioned

Answer 21

Number of pages being sent

Question 22

A notice sent through electronic mail or electronic instant messaging services along with electronic mail shall be ?

Answer 22

Digitally signed by competent authority

Question 23

Bouncing of the electronic mail shall ___

Answer 23

Not constitute valid service

Question 24

In case of failure to serve notice through any of the prescribed modes, the notice may be ?

Answer 24

1. Affixed on the outer door, or
2. Some other conspicuous part of the premises in which the person:

Resides, known to have last resided, carried on business, personally works or worked for gain.

Question 25

In case of failure to serve notice , a written report shall be prepared in the presence of ____

Answer 25

Two witnesses.

Question 26

In case of failure to affix the notice or order on the outer door, the notice shall be published in ____

Answer 26

1. At-least two newspapers- English daily news- paper having nationwide circulation and another having wide circulation in the language of the region where that person was last known to have resided or carried on business or personally worked for gain.