Securities And Exchange Board Of India - Subsection
Section 26(1) in Securities and Exchange Board of India (Underwriters) Regulations, 1993
(1)A penalty of suspension of certificate granted to an underwriter or a certificate of registration granted under section 12 of the Act to a stock broker or a merchant banker entitled to carry on business of underwriting without obtaining a certificate under rule 3, may be imposed where an underwriter or such stock broker or merchant banker-(i)violates the provisions of the Act, rules or regulations;(ii)does not follow the code of conduct specified at Schedule III;(iii)(a)fails to furnish any information relating to his business as underwriter as required by the Board;(b)furnishes wrong or false information,(c)does not submit periodical returns as required by the Board;(d)does not co-operate in any enquiry conducted by the Board;(iv)indulges in manipulating or price rigging or cornering activities;(v)is guilty of misconduct or improper or unbusiness like or unprofessional conduct;(vi)fails to maintain the capital adequacy requirement in accordance with the provisions of regulation 7.(vii)fails to pay the fees as specified in regulation 12;(viii)violates the conditions of registration;(ix)fails to fulfil his underwriting obligations.Provided that the Board for reasons 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 underwriter or cancellation of certificate of registration granted under section 12 of the Act on a stock broker or a merchant banker.
