Section 39 in Securities And Exchange Board Of India (Merchant Bankers) Regulations, 1992
39. Manner of holding enquiry before suspension or cancellation.-
(1)For the purpose of holding an enquiry under regulation 38, the Board may appoint an enquiry officer.(2)The enquiry officer shall issue to the merchant banker a notice the registered office or the principal place of business of the merchant banker.(3)The merchant banker may, within thirty days from the date of receipt of such notice, furnish to the enquiry officer a reply together with copies of documentary or other evidence relied on by him or sought by the Board from the merchant banker.(4)The enquiry officer shall, give a reasonable opportunity of hearing to the merchant banker to enable him to make submissions in support of his reply made under sub-regulation (3).(5)Before the enquiry officer, the merchant banker may either appear in person or through any person duly authorised by the merchant banker:Provided that no lawyer or advocate shall be permitted to represent the merchant banker at the enquiry:Provided further that where a lawyer or an advocate has been appointed by the Board as a presenting officer under sub-regulation (6), it shall be lawful for the merchant banker to present its case through a lawyer or advocate.(6)If it is considered necessary, the enquiry officer may ask the Board to appoint a presenting officer to present its case.(7)The enquiry officer shall, after taking into account all relevant facts and submissions made by the merchant banker, submit a report to the Board and recommend the penalty to be imposed as also the grounds on the basis of which the proposed penalty is justified.
