Regulation 7 Investigation by the Board.
(1) The Board may conduct investigation of a service provider under section 218.
(2) The Board may, for the purposes of this regulation, by an order, direct an Investigating Authority to conduct an investigation of the affairs of the service provider and to report thereon to the Board.
(3) The order referred to in sub-regulation (2) shall contain the following particulars: –
(a) scope of investigation in terms of records, activities, places, and persons;
(b) composition of Investigating Authority;
(c) timelines for conducting investigation;
(d) reporting of progress in investigation;
(e) submission of interim investigation report, if any; and
(f) submission of investigation report.
(4) The Board and the Investigating Authority shall make every effort to keep investigation confidential and to cause the least burden on, or disruption to, the business of the service provider under investigation.
(5) The Board may, at any time, modify the order referred to under sub-regulation (2) to enlarge the scope of investigation or other terms of investigation, for reasons to be recorded in writing.
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Regulation 8 Conduct of Investigation.
(1) The Investigating Authority shall serve a notice of investigation to the service provider at least 10 days before the commencement of investigation:
Provided that where the Investigating Authority is satisfied that the notice will cause undue delay in investigation or there is an apprehension that records of the service provider may be destroyed, mutilated, altered, falsified or secreted, after the notice is served, it may, for reasons to be recorded in writing, dispense with such notice.
(2) The Investigating Authority may require the service provider or an associated person to submit records as may be required, before the commencement of investigation.
(3) The Investigating Authority may visit the offices of the service provider for conducting the on-site investigation.
(4) It shall be the duty of the service provider and an associated person to produce before the Investigating Authority such records in his custody or control and furnish to the Investigating Authority such statements and information relating to its activities within such time as the Investigating Authority may require.
(5) The service provider shall allow the Investigating Authority to have access to the premises occupied by such service provider or by any other person on its behalf and extend facility for examination of any records in the possession of the service provider or any such other person and provide copies of records or other material which in the opinion of the Investigating Authority are relevant for the investigation.
(6) The Investigating Authority shall, in the course of investigation, may examine and record statements of any associated person of the service provider in relation to the affairs of his business and for that purpose may require any of those persons to appear before it personally.
(7) Notes of any examination referred to in sub-regulation (6) shall be recorded and shall be read over to, or by, and signed by, the person examined.
(8) It shall be the duty of the service provider and an associated person to give to the Investigating Authority all assistance which the Investigating Authority may reasonably require in connection with the investigation.
(9) The Investigating Authority may keep in its custody any record produced to it up to six months and thereafter shall return the same to the person by whom or on whose behalf the records were produced:
Provided that it may call for these records again if it considers necessary and shall give certified copies of these to the person by whom or on whose behalf these were produced, if required by him.
(10) Where in the course of investigation, the Investigating Authority has reasonable grounds to believe that the records of, or relating to, a service provider or an associated person in any manner, may be destroyed, mutilated, altered, falsified or secreted, the Investigating Authority may make an application to the competent court having jurisdiction for an order for the seizure of such records.
(11) After considering the application under sub-regulation
(10) and hearing the Investigating Authority, if necessary, the competent court may, by order, authorise the Investigating Authority –
(a) to enter, with such assistance, as may be required, the place or places where such records are kept;
(b) to search that place or those places in the manner specified in the order; and
(c) to seize records, it considers necessary, for the purposes of the investigation.
(12) The Investigating Authority may requisition the services of any police officer or any officer of the Central Government, or of both to assist him in search and seizure under the order under sub-regulation (11) and it shall be the duty of every such officer to comply with such requisition.
(13) Every search or seizure shall be carried out in accordance with the provisions of the Code of Criminal Procedure, 1973 (2 of 1974) relating to searches or seizures made under that Code.
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Regulation 9 Interim Investigation Report.
(1) The Investigating Authority may submit an interim investigation report to the Board, if it considers appropriate, keeping in view the nature and progress of investigation.
(2) The Investigating Authority shall submit an interim investigation report, if required by the Board.
(3) If the Board is satisfied from the interim investigation report that prima facie, there is a gross violation of the provisions of the Code, or the rules or regulations made thereunder, by the service provider and an immediate action under sub-section (2) of section 220 is warranted, the Board shall refer the matter to the Disciplinary Committee for an appropriate action.
(4) On consideration of the interim investigation report, the Disciplinary Committee may pass an interim order with appropriate directions to the service provider.
(5) The interim order referred to sub-regulation (4) shall lapse on expiry of 90 days.
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Regulation 10 Investigation Report.
(1) The Investigating Authority shall submit a copy of the draft investigation report to the Board.
(2) The Board shall examine the draft investigation report as to whether investigation is complete and satisfactory or requires further investigation and advise the Investigating Authority accordingly within 15 days of receipt of the draft investigation report.
(3) After taking into account advice of the Board, the Investigating Authority shall prepare the investigation report and submit it to the Board.
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