Securities Contracts (Regulation) Act,1956
Act No : 42
Section :
Power of Central Government to call for periodical returns or directinquiries to be made.
6.Power of Central Government to call for periodical returns or direct inquiries to be made.(1) Every recognised stock exchange shall furnish to the Securities and Exchange Board of india such periodical returns relating to its affairs as may be prescribed. (2) Every recognised stock exchange and every member thereof shall maintain and preserve for such periods not exceeding five years such books of account, and other documents as the Central Government, after consultation with the stock exchange concerned, may prescribe in the interest of the trade or in the public interest, and ---------------------------------------------------------------------- 1 Subs. by Act 15 of 1992, s. 33 & Sch. (w.e.f. 21.2.1992) ----------------------------------------------------------------------- 131 such books of account, and other documents shall be subject to in- spection at all reasonable times by the Securities and Exchange Board of India (3) Without prejudice to the provisions contained in sub- subsection (1) and (2), the [Securities and Exchange Board of India]if it is satisfied that it is in the interest of the trade or in the public interest so to do, may, by order in writing,- (a)call upon a recognised stock exchange or any member thereof to furnish in writing such information or expla- nation relating to the affairs of the stock exchange or of the member in relation to the stock exchange or of Securities and Exchange Board of India may require; or (b)appoint one or more persons to make an inquiry in the prescribed manner in relation to the affairs of the governing body of a stock exchange or the affair.,; of a of the members of the stock exchange in relation to t stock exchange and submit a report of the result of such inquiry to the [Securities and Exchange Board of India] within such time as may be specified in the order or, in the case of an inquiry in relation to the affairs of any of the members of a stock exchange, direct the governing body to take the inquiry and submit its report to the Securities and Exchange Board of India. (4) Where an inquiry in relation to the affairs of a recognised stock exchange or the affairs of any of its members in relation to the stock exchange has been undertaken under sub-section (3),- (a)every director, manager, secretary or other officer of such stock exchange ; (b) every member of such stock exchange; (c)if the member of the stock exchange is a firm, every partner, manager, secretary or other officer of the firm ; and (d)every other person or body of persons who has had dealings in the course of business with any of the persons mentioned in clauses (a), (b) and (c), whether directly or indirectly ; shall be bound to produce before the authority making the inquiry all such books of account, and other documents in his custody or ,Power relating to or having a bearing on the subject-matter of such inquiry and also to furnish the authorities within such time as may be specified with any such statement or information relating thereto as may be required of him, ---------------------------------------------------------------------- 1 Subs. by Act 15 of 1992, s. 33 & Sch. (w.e.f. 21.2.1992) ---------------------------------------------------------------------- 132
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