(1) The company shall ensure that -
(a) The explanatory statement to the notice for general meeting shall contain disclosures as are specified under clause (b) of sub section (1) of Section 79A and sub regulation (1) of Regulation 5.
(b) The Auditor’s certificate as required under Regulation 10 shall be placed in the general meeting of shareholders.
(c) The company shall within seven days of the issue of sweat equity, issue or send statement to the exchange, disclosing:
(i) number of sweat equity shares;
(ii) price at which the sweat equity shares are issued;
(iii) total amount invested in sweat equity shares;
(iv) details of the persons to whom sweat equity shares are issued; and
(v) the consequent changes in the capital structure and the shareholding pattern after and before the issues of sweat equity.
Action against intermediaries.
16. The Board may, on failure of the merchant banker to comply with the obligations under these regulations or failing to observe due diligence in respect of valuation of intellectual property or value addition, initiate action against merchant banker in terms of Securities and Exchange Board of India (Merchant Bankers) Regulations,
1992.
CHAPTER IV PENALTIES AND PROCEDURE Power of the Board to order inspection or investigation.