Section 26 in Securities And Exchange Board Of India (Debenture Trustees) Regulations, 1993
26. Suspension, cancellation of certificate.-
A penalty of suspension of certificated granted to a debenture trustee may be imposed where a debenture trustee-(i)violates the provisions of the Act, rules and regulations;(ii)does not follow the code of conduct specified at Schedule III;(iii)fails to furnish information relating to his business as debenture trustee as required by the Board;(iv)furnishes wrong or false information;(v)does not submit reports as required by the Board;(vi)does not cooperate in any enquiry conducted by the Board;(vii)indulges in manipulating or price rigging or cornering activities;(viii)is guilty of misconduct or improper or unbusinesslike or unprofessional conduct;(ix)fails to pay the fees as specified in Regulation 12;(x)violates the conditions subject to which certificate has been granted;(xi)fails to fulfil the obligations under the trust deed:Provided that the Board for reason to be recorded in writing may in case of repeated defaults of the type mentioned above impose a penalty of cancellation of certificate on the debenture trustee.(2)A penalty of cancellation of certificate granted to a debenture trustee may be imposed if the debenture trustee-(i)indulges in deliberate manipulation or price rigging or cornering activities affecting the securities market and the investors' interests;(ii)is guilty of fraud, or is convicted of a criminal offence;(iii)violates any provision of insider trading regulations;(iv)fails to fulfil the obligations under the trust deed or has been discharged from its office under any of the circumstances mentioned in Section 71 of the Indian Trust Act, 1882 (2 of 1882);(v)violates the provisions of the Act, rules and regulations;(vi)violates the provisions of Companies Act and the rules made thereunder;(vii)has been removed by the debenture holders by a resolution passed by not less than 75 per cent of the debenture holders.
