Securities and Exchange Board of India (Appointment of Administrator and Procedure for Refunding to the Investors) Regulations, 2018
Summary
Part 1 establishes the Securities and Exchange Board of India (Appointment of Administrator and Procedure for Refunding to the Investors) Regulations, 2018 and defines key terms including Administrator, defaulter, investor, property, certificate, Recovery Officer and refund order. It specifies applicability to appointment of Administrator, sale of attached properties, claim verification and refunds pursuant to disgorgement or refund orders, excluding cases where the Securities Appellate Tribunal or a Court has appointed an administrator. It prescribes eligibility, conflict of interest undertakings, deemed public servant status and functions of the Administrator including property records, sale proclamation, claim verification and engagement of valuers and chartered accountants. This part governs the Administrator's power to engage a registrar and share transfer agent and other agencies with fees fixed within Board-approved remuneration and without conflict of interest, and requires monthly progress reports to the Recovery Officer. It prescribes the sale of attached properties after independent valuation by a registered valuer, fixation of reserve price by the Recovery Officer, e-au
Text
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.
"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.
"certificate" means the statement drawn up by the Recovery Officer under section 28A of the Act or section 23JB of the Securities Contracts (Regulations) Act, 1956 or section 19-IB of the Depositories Act, 1996 and shall not include a sale certificate
"defaulter" for the purposes of these regulations, means a person who has failed to comply with an order of the Board to refund monies to the investors or an order of the Board for disgorgement within the specified time period and who is mentioned as a defaulter in the certificate
"investor" means the person, whether identified or not, in whose favour the refund of monies had been directed by the Board
"property" means and includes assets of any kind, whether movable or immovable, tangible or intangible, corporeal or incorporeal and includes securities, bank accounts, deposits, any right or interest or legal documents or instruments evidencing title to or interest in the property and where the property is capable of conversion into some other form, then the property in the converted form and also includes the proceeds from the property.
"Recovery Officer" means an officer of the Board, who is authorised by a general or special order in writing, to exercise the powers of a recovery officer under section 28A of the Act or section 23JB of the Securities Contracts (Regulations) Act, 1956 or section 19-IB of the Depositories Act, 1996
"refund order" means a direction of the Board, issued under the Act or the Securities Contracts (Regulation) Act, 1956 or the Depositories Act, 1996, to refund monies to the investors
These regulations shall be applicable for all or any of the following: a. appointment of Administrator pursuant to failure to comply with disgorgement or refund orders passed by the Board; b. sale of properties attached by the Recovery Officer of the Board under the Act; c. collection of claim documents and verification of claims of investors for the purpose of effecting refunds; d. refund of monies to the investors pursuant to disgorgement or refund orders passed by the Board; e. recovery of disgorgement amounts directed by the Board; f. any act incidental or connected thereto.
Unless otherwise specifically ordered, these regulations shall not be applicable to cases where the Securities Appellate Tribunal or a Court has appointed an administrator or any other person for the purposes of recovery and/or repayment to investors.
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.
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Source: SecMarx — Securities and Exchange Board of India (Appointment of Administrator and Procedure for Refunding to the Investors) Regulations, 2018. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.