THE GAZETTE OF INDIA EXTRAORDINARY PART III -SECTION 4 PUBLISHED BY AUTHORITY

regulations · 1992 · State unknown

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Parent: THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 (7c4c1f5343adab106c3a94cafc08a5ecf5957ae7)

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THE GAZETTE OF INDIA EXTRAORDINARY PART III -SECTION 4 PUBLISHED BY AUTHORITY NEW DELHI, OCTOBER 3, 2018 SECURITIES AND EXCHANGE BOARD OF INDIA NOTIFICATION Mumbai, the 3 rd October, 2018 SECURITIES AND EXCHANGE BOARD OF INDIA (APPOINTMENT OF ADMINISTRATOR AND PROCEDURE FOR REFUNDING TO THE INVESTORS) REGULATIONS, 2018 No. SEBI/LAD -NRO/GN/2018/39 . -In exercise of the powers conferred by section 30 read with sub -section (1) of section 11 and section 28A of the Securities and Exchange Board of India Act, 1992 (15 of 1992), section 23JB of the Securities Contracts (Regulations) Act, 1956 and section 19-IB of the Depositories Act, 1996, the Board hereby makes the following regulations, namely,- CHAPTER I Preliminary Short title and commencement . (1) These regulations may be called the Securities and Exchange Board of India (Appointment of Administrator and Procedure for Refunding to the Investors) Regulations, 2018. They shall come into force on the date of their notification in the Official Gazette . Definitions . 2 . (1) In these regulations, unless the context otherwise requires,- " Act " means the Securities and Exchange Board of India Act, 1992 [15 of 1992]; " Administrator" means a person registered with the Insolvency and Bankruptcy Board of India as an Insolvency Resolution Professional and who has been engaged by the Recovery Officer for the purposes of these regulations. " advertisement" includes - (i) notices, brochures, pamphlets, circulars, show-cards, catalogues, hoardings, placards, posters, insertions in newspapers, pictures, films and documentaries; and (ii) any publicity through print medium, radio, television programmes or electronic media; " auditor" means a person qualified to audit the accounts of companies under the Companies Act, 2013; " Board " 

Rule TOC

2 · . (1) In these regulations, unless the context otherwise requires,-

3 · . (1) These regulations shall be applicable for all or any of the following:

4 · . For the purposes of these regulations, the Board shall, after attachment of the properties of the defaulter by the Recovery Officer, appoint an Administrator in the manner specified .

5 · (1) The Administrator shall be a person registered with the Insolvency and Bankruptcy Board of India as an Insolvency Resolution Professional and empanelled by the Board from time to time .

6 · . The terms and conditions of appointment including remuneration shall be specified by the Board , on a case to case basis, after taking into consideration the quantum of work, the number of investors and the quantum of money involved .

7 · . (1) An Administrator shall perform the following functions –

8 · . (1) The Administrator shall undertake the process of sale of properties after conducting an independent valuation of such properties by a registered valuer.

9 · . (1) For the purposes of inviting claims from the investors , the Administrator shall -(a) issue advertisements in an English and a Hindi newspaper having nationwide circulation and if so directed by the Recovery Officer, issue such advertisement in vernacular newspaper(s) having circulation in the area(s) where the investors are concentrated;

10 · . (1)The entire costs incurred in relation to the sale of properties, verification of investors' claims, remuneration of Administrator including the fees paid, if any, to the chartered accountant or valuer or such other person engaged by the Administrator and registrar and share transfer agent and all other expenses incurred in connection with the recovery and/or the repayment process shall be borne by the defaulter(s) , failing which , the monies recovered by the Board shall be appropriated in priority to the other liabilities .

11 · . The proceeds from the sale of properties of the defaulter shall be distributed in the following order of priority, namely , -

12 · . In case the proceeds realised by way of sale of properties of the defaulter is in excess of the monies due from him under the certificate and the applicable interest and other charges, the excess money shall be paid to the defaulter after completion of three years from the date of completion of the refund process .

13 · . U Upon completion of the repayments to all investors or recovery of the disgorgement amount from the defaulter, the Administrator shall file a detailed repayment/recovery report to the Recovery Officer or Board , as the case may be , within the period as may be specified.

14 · . The provisions of these regulations in relation to recovery of disgorgement amount ordered by the Board shall be applied in so far as it is applicable and the disgorgement amount so recovered shall be credited to the Investor Protection and Education Fund of the Board .

15 · . An Administrator -

16 · . (1) The Recovery Officer may, for reasons to be recorded in writing, recommend for replacement of the Administrator , in case the Administrator has -

17 · . In order to remove any difficulties in the application or interpretation of these regulations, the Board may issue clarifications and guidelines, as deemed necessary .

18 · . The Board or the Recovery Officer may specify the forms in respect of an order, notice, warrant, or certificate to be issued under these regulations .