The amended rules specify the modes for service of notices and orders.
The finance ministry has notified amended Sebi rules pertaining to the procedure for holding an inquiry and imposing penalties. The new rules are — Depositories (Procedure for Holding Inquiry and Imposing Penalties) (Amendment) Rules, 2021; Securities Contracts (Regulation) (Procedure for Holding Inquiry and Imposing Penalties) (Amendment) Rules, 2021; and Securities and Exchange Board of India (Procedure for Holding Inquiry and Imposing Penalties) (Amendment) Rules, 2021. The rules have become effective from December 31.
The amended rules specify the modes for service of notices and orders. A notice or an order issued under these rules has to be served on the person by delivering or tendering it to that person or his duly authorised agent.
It can also be sent by fax, electronic mail or electronic instant messaging services along with electronic mail, by courier, speed post or registered post.
Sebi has also specified certain conditions in this regard.
In case of failure to serve a notice or an order through any one of the modes, the notice or order may be affixed on the outer door. It can also be on some other conspicuous part of the premises in which “the person resides or is known to have last resided, or carried on business or personally works, or last worked, for gain and a written report thereof shall be prepared in the presence of two witnesses”.
In case of failure to affix the notice or order, it has to be published in at least two newspapers, one in an English daily newspaper having nationwide circulation and another in a newspaper having wide circulation published in the language of the region where that person was last known to have resided or carried on business or personally worked for gain, as per the notifications.
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