(1) The Inspecting or Investigating Officer shall, on completion of the inspection or Investigation after taking into account all relevant facts and circumstances, submit a report to the Board.
(2) On the receipt of report under sub-regulation (1), the Board may initiate such action as it may be deemed fit to do in the interests of investors and the securities market.
Power of the Board to Issue directions.
20. The Board may in the interests of the securities market and without prejudice to its rights to initiate action, including criminal prosecution under Section 24 of the Act or Section 621 of Companies Act give such directions as it deems fit including:-
(a) directing the person concerned not to further deal in securities in any particular manner;
(b) directing the person concerned to sell or divest the sweat equity shares acquired in violation of the provisions of these Regulations or any other law or regulations;
(c) prohibiting the persons concerned, from accessing the securities market;
(d) directing the disgorgement of any ill-gotten gains or profits or avoidance of loss;
(e) restraining the company from making a further offer for sweat equity.
SCHEDULE SECURITIES AND EXCHANGE BOARD OF INDIA (ISSUE OF SWEAT EQUITY) Regulations, 2002 [Under Regulation 6(4)] The explanatory statement to the notice and the resolution proposed to be passed in the general meeting for approving the issuance of sweat equity shall, inter alia, contain the following information:
a) The total number of shares to be issued as sweat equity.
b) The current market price of the shares of the company.
c) The value of the intellectual property rights or technical know how or other value addition to be received from the employee or director along with the valuation report / basis of valuation.
d) The names of the employees or directors or promoters to whom the sweat equity shares shall be issued and their relationship with the company.
e) The consideration to be paid for the sweat equity.
f) The price at which the sweat equity shares shall be issued.
g) Ceiling on managerial remuneration, if any, which will be affected by issuance of such sweat equity.
h) A statement to the effect that he company shall conform to the accounting policies as specified by the Board.
i) Diluted Earning Per Share pursuant to the issue of securities to be calculated in accordance with International Accounting Standards / standards specified by the Institute of Chartered Accountants of India.
Notification: No. SO 1031 (E), dated 24-9-2002.