Section 12 in The Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017
12. Show-cause notice.
(1)The show-cause notice shall be in writing and shall state-(a)the provisions of the Code under which it has been issued;(b)the details of the alleged facts;(c)the details of the evidence in support of the alleged facts;(d)the provisions of the Code, or the rules, regulations or guidelines made thereunder, allegedly violated;(e)the actions or directions that the Board proposes to take or issue, if the allegations are established; and(f)the time within which the notice may make written submission.(2)For the purposes of clause (e) of sub-regulation (1), the Board shall take into account, but not limited to, the following factors: -(a)the nature and seriousness of the alleged contraventions, including whether it was deliberate, reckless or negligent on the part of the notice;(b)the consequences and impact of the alleged contravention, including -(i)unfair advantage gained by the notice as a result of the alleged contravention;(ii)loss caused, or likely to be caused, to clients or any other person as a result of the alleged contravention; and(iii)the conduct of the notice after the occurrence of the alleged contravention, and prior to the alleged contraventions.(3)The show-cause notice shall provide at least 21 days to the notice to make a written submission.(4)The show-cause notice shall state, if a notice fails to respond under sub-regulation (3) within the given time, it shall be disposed of based on the material available on record.(5)The show-cause notice shall enclose copies of relevant documents and extracts of relevant portions from the report of investigation or inspection, or other records.(6)A show-cause notice issued shall be served on the notice-(a)by sending it to the notice at its registered office, by registered post with acknowledgement due; and(b)by an appropriate electronic form to the email address provided by the service provider to the Board.(7)The Board shall refer the show-cause notice to the Disciplinary Committee along-with all the relevant records including the written submissions, if any, made by the notice in the matter.
