Section 11 in Securities Contracts (Regulation) Rules, 1957
11. Obligation of the governing body to take disciplinary action against a member if so directed by the [Securities and Exchange Board of India] [Substituted for 'Central Government' by the Securities Contracts (Regulation) (Amendment) Rules, 1996, w.e.f. 23.12.1996.].
- After receiving the report of the result of an enquiry made under clause (b) of subsection (3) of section 6 of the Act, the [Securities and Exchange Board of India] may take such action as they deem proper and, in particular, may direct the governing body of the stock exchange to take such disciplinary action against the offending member, including fine, expulsion, suspension or any other penalty of a like nature not involving the payment of money, as may be specified by the [Securities and Exchange Board of India] [Substituted for 'Central Government' by the Securities Contracts (Regulation) (Amendment) Rules, 1996, w.e.f. 23.12.1996.]; notwithstanding anything to the contrary contained in the rules or bye-laws of the stock exchange concerned, the governing body shall give effect to the directions of the [Securities and Exchange Board of India] [Substituted for 'Central Government' by the Securities Contracts (Regulation) (Amendment) Rules, 1996, w.e.f. 23.12.1996.] in this behalf and shall not in any manner commute, revoke or modify the action taken in pursuance of such directions, without the prior approval of the [Securities and Exchange Board of India] [Substituted for 'Central Government' by the Securities Contracts (Regulation) (Amendment) Rules, 1996, w.e.f. 23.12.1996.]. The [Securities and Exchange Board of India] [Substituted for 'Central Government' by the Securities Contracts (Regulation) (Amendment) Rules, 1996, w.e.f. 23.12.1996.] may, however, either of its own motion or on the representation of the member concerned, modify or withdraw its direction to the governing body.
