Section 29: Investigation and proceedings by the Commission

1[29. Investigation and proceedings by the Commission.—(1)Where the Commission, either on its own motion or on the basis of any information received, authorize one or more of its employees or one or more other persons to investigate, whether— (a) an offence or a contravention has been committed by any person under this Act or any administered legislation or a subordinate legislation; (b) a regulated person has been engaged in committing fraud, misfeasance or other misconduct in carrying on a regulated activity; or (c) the manner in which a regulated person has engaged or is engaging in his regulated activity is not in the interest of the financial services market or investors, and submit an investigation report thereof to the Commission, the Commission shall proceed in the matter in accordance with the provisions of the Act and the administered legislation: Provided that where any special procedure regarding investigation or inquiry is provided in the administered legislation the Commission may adopt such special procedure in addition to the procedure provided in this Act. (2) Any concerned person, who is reasonably believed or suspected by the investigator to have in his possession or under his control any record or document which contains or which is likely to contain information relevant to an investigation under this section or who is believed or suspected of otherwise having such information in his possession or under his control, shall— (a) produce to the investigator, within such time and at such place as the investigator requires in writing, any record or document specified by the investigator which is, or may be, relevant to the investigation and which is in his possession or under his control; (b) if required by the investigator give the investigator an explanation for or further particulars of any record or document produced under clause (a); 1Subs. by Act No. XXXVI of 2016, s. 14. (c) appear before the investigator at such time and at such place as the investigator requires in writing and answer truthfully and to the best of his ability any question relating to the matters under investigation as the investigator may put to him, whether orally or in writing; and (d) provide to the investigator all assistance in connection with the investigation which he is reasonably able to give. (3) Any person who without reasonable cause fails to— (a) produce any record or document required to be produced under clause (a) of sub­section (2); (b) give an explanation or further particulars as required under clause(b) of sub­section (2); (c) appear before the investigator as required under clause (c) of sub­section (2); (d) answer a question put to him by the investigator under clause (c) of sub­section (2) or in answering the question says anything which he knows to be false or misleading in a material particular or who in so answering recklessly makes a false statement; or (e) comply with clause (d) of sub­section (2), commits an offence under this Act and shall be punishable with imprisonment of either description which may extend to three years or with fine which may extend to two hundred million rupees or with both. (4) The Commission may, for the purposes of investigation under this Act or any administered legislation, also seek assistance of any other investigating agencies, bureau, local police and administration, statutory bodies, banks and other relevant entity, who shall provide such assistance to the Commission.]

Effective date: 1997-01-01

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