(1) If an issuer or its agent -
(a) contravenes any of the provisions of the Depositories Act, the byelaws, agreements, these regulations and directions issued thereunder;
(b) fails to furnish any information relating to its activity as an issuer as required under these regulations;
(c) does not furnish the information called for by the Board under clause (a) of subsection (1) of section 18 of the Depositories Act or furnishes information which is false or misleading in any material particular;
(d) does not co-operate in any inspection or investigation or enquiry conducted by the Board;
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(e) fails to comply with any direction of the Board issued under section 18 of the Depositories Act, the Board may, without prejudice to any other action which it may take under the Act, take any action against such issuer or its agent under the Depositories Act.
(2) The depository shall conduct inspection of the records of the issuers or agents, as the case may be to ensure that the records of dematerialised securities are reconciled with all the securities issued by the issuer and submit its report to the Board if there is failure by the issuers or agents in such reconciliation of records.
CHAPTER XI MISCELLANEOUS Power to call for information
94. The Board may from time to time call for any information, documents or records from the depository or its governing board or any shareholder or applicant thereof and from depository participant.
Directions by the Board
95. Without prejudice to exercise of its powers under the provisions of the Act, Depositories Act, 1996 and rules and regulations made thereunder, the Board may, either suo motu or on receipt of any information or during pendency of any inspection, inquiry or investigation or on completion thereof, in the interest of public or trade or investors or the securities market, issue such directions as it deems fit, including but not limited to any or all of the following:─
(a) directing a person holding equity shares or rights over equity shares in a depository in contravention of these regulations to divest his holding, in such manner as may be specified in the direction;
(b) directing transfer of any proceeds or securities to the Investor Protection Fund of a depository;
(c) debarring any depository, any shareholder of such depository, or any associate and agent of such shareholder, or any transferee of shares from such shareholder, or applicant(s), director(s) and key management personnel(s) of the depository from accessing the securities market and/or dealing in securities for such period as may be determined by the Board.
Power to remove difficulties
96. In order to remove any difficulties in the interpretation or application of the provisions of these regulations, the Board shall have the power to issue directions through guidance notes or circulars.
36 Power to specify procedures, etc. and issue clarifications
97. For the purposes of implementation of these regulations and matters incidental thereto, the Board may specify norms, procedures, processes, manners or guidelines as specified in these regulations, by way of circulars.
Repeal and savings