Section 40 in Securities And Exchange Board Of India (Merchant Bankers) Regulations, 1992
40. Show-cause notice and order.-
(1)On receipt of the report from the enquiry officer, the Board shall consider the same and issue a show-cause notice as to why the penalty as proposed by the enquiry officer should not be imposed.(2)The merchant banker shall within twenty-one days of the date of the receipt of the show-cause send a reply to the Board.(3)The Board after considering the reply to the show-cause notice, if received, shall as soon as possible but not later than thirty days from the receipt of the reply, if any, pass such order as it deems fit.(4)Every order passed under sub-regulation (3) shall be self-contained and give reasons for the conclusions stated therein including justification of the penalty imposed by that order.(5)The Board shall send a copy of the order under sub-regulation (3) to the merchant banker.
