(1) If the Board is of the opinion that the recognition granted to a Self Regulatory Organization under the provisions of these Regulations should, in the interest of the trade or in the public interest, be withdrawn, it may serve a written notice in Form "C" on Board of Directors of the Self Regulatory Organization calling upon it to show cause as to why the recognition should not be withdrawn for the reasons stated in the notice.
(2) Where a notice is issued under sub-regulation (1), the Board may, after giving an opportunity to Board of Directors of the Self Regulatory Organization to be heard in the matter, withdraw, by passing an order, the recognition granted to the Self Regulatory Organization and thereupon sub-regulations (3), (4) and (5) of regulation 11 would apply as if the application of the Self Regulatory Organization for renewal of recognition has been rejected under regulation 10.
(3) The Board shall promptly communicate such order to the concerned Self Regulatory Organization.
(4) On receipt of the order passed under sub-regulation (2), the Self Regulatory Organization shall cease to carry on any activity as a Self Regulatory Organization and shall comply with such directions as may be issued by the Board under sub-regulation (2) read with sub- regulations (3), (4) or (5) of regulation 11, as the case may be.
Action in case of violation.
24. If any Self Regulatory Organization, any office bearer or member thereof violates any provisions of the Act or these regulations, it may be liable for -
(a) action under Chapter VIA of the Act;
(b) action under subsection (3) of section 12 of the Act;
(c) action under subsection (4) of section 11 and section 11B of the Act;
(d) action under section 24 of the Act;
(e) such other action permissible under the Act which may be deemed appropriate in the facts and circumstances of the case.
FIRST SCHEDULE FORMS FORM A (See Regulations 3 and 9) Application for recognition / renewal of a Self Regulatory Organization under Regulation 3 of Securities and Exchange Board of India (Self Regulatory Organizations) Regulations, 2003.
To Subject : Application for recognition / renewal of a Self Regulatory Organization under Regulation 3 of Securities and Exchange Board of India (Self Regulatory Organizations) Regulations, 2003. Sir,
1. I, being duly authorized for the purpose, hereby apply on behalf of ............ (name and address of the applicant) being a company eligible to be recognized as a Self Regulatory Organization as defined in Regulation 2(i) of Securities and Exchange Board of India (Self Regulatory Organizations) Regulations, 2003 for recognition / renewal for the purpose of the said Regulations.
2. Four copies of the memorandum and articles of association of the Self Regulatory Organization and four copies of the governing norms are enclosed, alongwith the applicant's Board resolution dated _____ authorizing the undersigned to make this application on its behalf.
3. All the necessary information required in the Annexure to this Form is enclosed. Any additional information will be furnished as and when called for by the Securities and Exchange Board of India.
4. I on behalf the Self Regulatory Organization hereby undertake to comply with the requirements of Regulation 4 of the said Regulations and such other conditions and terms as may be contained in the certificate of recognition or be specified or imposed subsequently.
5. 10 [The fees has been remittedthrough electronic payment mode as per details below/]Demand Draft No ....dated for Rs ........... is attached.
Yours faithfully Signature of authorized signatory with name and designation (On behalf of ________ <name of the applicant>) ANNEXURE TO FORM 'A' Part I - General
1. Name of the applicant.
2. Address.
3. Date of establishment.
Part II - Membership
1. State the number of members at the time of application. Also specify how many are inactive.
2. Do you insist on any minimum qualifications and experience before enrolling new members? If so give details.
3. Do you collect any admission / entrance fee from your member? If so, how much?
Part III - Board of Directors
1. What is the present strength of your Board of Directors? Give details of the constitution, powers of management, election and tenure of the office Board of Directors, and the manner in which its business is transacted.
2. How many SEBI's representatives are there? Furnish their names.
10 Inserted by the SEBI (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2017, w.e.f. 6.3.2017.
3. Do you have any provision for the appointment of disciplinary committee, screening committee etc? If so, furnish the details of the method of their appointment, terms of office, powers and functions.
4. Give the designations, powers and duties of office-bearers of your organization. Are any of these office - bearers in the pay of the Self Regulatory Organization? If so, give details as to the mode of their appointment, tenure of office and remuneration.
Part IV - Miscellaneous
1. Do you have any machinery for arbitration of disputes between members and / or between members and their constituents ? Give details.
2. Are you charging admission fees from your members ? If so, give details.
FORM B1 Securities and Exchange Board of India (Self Regulatory Organizations) Regulations, 2003 (See Regulation 5 ) Certificate of Recognition
1. In exercise of the powers conferred by regulation 5 of these regulations, the Board hereby grants a certificate of recognition No to M/s __________________ to act as a Self Regulatory Organization in accordance with these regulations and the conditions mentioned in the annexure.
2. Recognition Code for Self Regulatory Organization is ...............
3. The certificate shall be valid from ............. to .................... and may be renewed as specified in Regulation 9 of Securities and Exchange Board of India (Self Regulatory Organizations) Regulations, 2003.
Place: By order Date : Sd/- For and on behalf of Securities and Exchange Board of India Note: - Application for renewal of recognition shall be made so as to reach the Board not less than three months before the expiry of the period.
Form B2 Securities and Exchange Board of India (Self Regulatory Organizations) Regulations, 2003 ( See Regulation 9(4) ) Certificate of renewal of Recognition
1. In exercise of the powers conferred by sub-regulation (4) of regulation 9, the Board hereby renews the certificate of recognition No. dated __________ , issued to M/s. ________________ , to function as a Self Regulatory Organization, for a further period of ______ years from ______ .
2. Recognition Code for Self Regulatory Organization is ...............
Place: By order Date : Sd/- For and on behalf of Securities and Exchange Board of India Note: - Application for further renewal of recognition shall be made so as to reach the Board not less than three months before the expiry of the validity period of this certificate.
FORM C (See Regulation 23) Notice to show cause against the withdrawal of registration THE SECURITIES AND EXCHANGE BOARD OF INDIA Mumbai, the .... day of ..2003 To, ………………………… ……………………………….
(name and address of the Self Regulatory Organization) You are hereby called upon to show cause on or before .......................... at the office of ................................. (designation of the officer) why the certificate of recognition No.
....... granted to you under Regulation 5 of Securities and Exchange Board of India (Self Regulatory Organizations) Regulations, 2003, should not be withdrawn for the reasons given below:
Signature of the Officer Designation SECOND SCHEDULE
PART 'A' Securities And Exchange Board Of India (Self Regulatory Organizations) Regulations, 2003 [ See Regulation 3 (4) and 9 (3) ] FEES
PART A AMOUNT TO BE PAID AS FEES Application fee 25,000 Recognition fee for grant of certificate 5,00,000 Renewal fee 3,00,000
PART B The fees specified above shall be paid 11[by way of direct credit in the bank account through NEFT/RTGS/IMPS or any other mode allowed by RBI or] by way of a demand draft in favour of 'Securities and Exchange Board of India' payable at Mumbai.
****** 11Inserted by the SEBI (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2017, w.e.f. 6.3.2017.