(1) Where it appears to the Board so to do, it may appoint one or more persons as inspecting authority to undertake inspection of the books of accounts, other records and documents of the Self Regulatory Organization for any of the purposes specified in subregulation (2).
(2) The purposes referred to in sub-regulation (1) shall be as follows, namely: -
(a) to ensure that the provisions of the Act, the regulations, the directions and the circulars issued by the Board are being complied with;
(b) to inquire into the complaints received from members, investors, or any other person on any matter having a bearing on the activities of the Self Regulatory Organization; or,
(c) to inquire suomotu, in the interest of securities business or investors' interest, into the affairs of the Self Regulatory Organization.
Procedure for inspection.
17.(1) Before undertaking any inspection under regulation 16, the Board shall give a reasonable notice to the Self Regulatory Organization for that purpose.
(2) Notwithstanding anything contained in sub-regulation (1), where the Board is satisfied that in the interest of the investors or in public interest, no such notice should be given, it may by an order in writing, direct that the inspection of the affairs of the Self Regulatory Organization be taken up without such notice.
(3) On being empowered by the Board, the inspecting authority shall undertake the inspection and the Self Regulatory Organization against whom an inspection is being carried out shall be bound to discharge its obligations as provided under regulation 18.
Obligations of Self Regulatory Organization on inspection by the Board.