Section 4 in Securities and Exchange Board of India (Procedure For Holding Inquiry and Imposing Penalties By Adjudicating Officer) Rules, 1995
4. Holding of inquiry.
(1)In holding an inquiry for the purpose of adjudging under sections [15A, 15B, 15C, 15D, 15E, [15EA, 15EB,] [Substituted by S.O. 1961(E), dated 14th November, 2006] 15F, 15G and 15HA and 15HB] whether any person has committed contraventions as specified in any of the sections [15A, 15B, 15C, 15D, 15E, [15EA, 15EB,] [Substituted by S.O. 1961(E), dated 14th November, 2006] 15F, 15G and 15HA and 15HB] 15F, 15G and 15HA and 15HB], the [the Board or the adjudicating officer] [Substituted 'adjudicating officer' by Notification No. G.S.R. 210(E), dated 8.3.2019 (w.e.f. 10.7.1995).] shall, in the first instance, issue a notice to such person requiring him to show-cause within such period as may be specified in the notice (being not less than fourteen days from the date of service thereof) why an inquiry should not be held against him.(2)Every notice under sub-rule (1) to any such person shall indicate the nature of offence alleged to have been committed by him.(3)If, after considering the cause, if any, shown by such person the [the Board or the adjudicating officer] [Substituted 'adjudicating officer' by Notification No. G.S.R. 210(E), dated 8.3.2019 (w.e.f. 10.7.1995).] is of the opinion that an inquiry should be held, he shall issue a notice fixing a date for the appearance of that person either personally or through his lawyer or other authorised representative.(4)On the date fixed, the [the Board or the adjudicating officer] [Substituted 'adjudicating officer' by Notification No. G.S.R. 210(E), dated 8.3.2019 (w.e.f. 10.7.1995).] shall explain to the person proceeded against or his lawyer or authorised representative, the offence alleged to have been committed by such person indicating the provisions of the Act, rules or regulations in respect of which contravention is alleged to have taken place.(5)The [the Board or the adjudicating officer] [Substituted 'adjudicating officer' by Notification No. G.S.R. 210(E), dated 8.3.2019 (w.e.f. 10.7.1995).] shall then given an opportunity to such person to produce such documents or evidence as he may consider relevant to the inquiry and if necessary the hearing may be adjourned to a future date and in taking such evidence the adjudicating officer shall not be bound to observe the provisions of the Evidence Act, 1872 (11 of 1872) :Provided that the notice referred to in sub-rule (3), and the personal hearing referred to in sub-rules (3), (4) and (5) may, at the request of the person concerned, be valved.[(5-A) The Board may appoint a presenting officer in an inquiry under this rule.] [Inserted by S.O. 1961(E), dated 14th November, 2006](6)While holding an inquiry under this rule the [the Board or the adjudicating officer] [Substituted 'adjudicating officer' by Notification No. G.S.R. 210(E), dated 8.3.2019 (w.e.f. 10.7.1995).] shall have the power to summon and enforce the attendance of any person acquainted with the facts and circumstances of the case to give evidence or to produce any documents which, in the opinion of the adjudicating officer, may be useful for or relevant to, the subject-matter of the inquiry.(7)If any person fails, neglects or refuses to appear as required by sub-rule (3) before the adjudicating officer, the [the Board or the adjudicating officer] [Substituted 'adjudicating officer' by Notification No. G.S.R. 210(E), dated 8.3.2019 (w.e.f. 10.7.1995).] may be proceed with the inquiry in the absence of such person after recording the reason for doing so.
