Section 36G: Powers of the Commission to issue directions to self­regulatory organization

36G. Powers of the Commission to issue directions to self­regulatory organization.—(1) Without prejudice to the powers conferred by section 40B the Commission may issue directions to self­regulatory organization of a general or specific nature where the Commission considers it necessary or expedient, in the public interest or for the protection of investors or in the interest of financial services market. (2) Where the self­regulatory organization contravenes any provision of this Act or any administered legislation or any rules or regulations made thereunder or fails to comply with any direction of the Commission, the Commission may, after providing a reasonable opportunity of being heard,— (a) remove the chief executive officer, any director or officer of the self­regulatory organization from office; (b) impose a penalty of such sum which may extend to fifty million rupees; or (c) suspend or cancel the registration of the self­regulatory organization. PART IXC AUDIT OVERSIGHT BOARD

Effective date: 1997-01-01

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