finance_ragas.csv

,question,ground_truth,answer,contexts
0,Can an Informant be eligible for a Reward despite being liable for enforcement action by the Board?,"Yes, an Informant who may be liable for enforcement action by the Board based on their conduct in connection with securities laws violations reported in the Voluntary Information Disclosure Form filed with the Board, may simultaneously or at any time thereafter file an application seeking settlement with confidentiality under Chapter IX of the Securities and Exchange Board of India (Settlement Proceedings) Regulations, 2018.",,"[' \n 7H. (1) Any information including Original Information may, at the  discretion of the Board , be \nmade available:  \n(a) when it is required to be disclosed in connection with any legal  proceedings  in \nfurtherance of the Board’s legal position ;  \n(b) as permitted by these regulations; or \n(c) as may be otherwise required or permitted by law.  \n \n(2) Original Informati on may, at the discretion of the Board, be made available to - \n(i) any regulatory agency  constituted by or under any law in India or outside India ; \n(ii) a ny self-regulatory organization;  \n(iii) the surveillance or investigation wings of any recognised stock  exchange or clearing \ncorporation;  or \n(iv) any law enforcement organization  including the police or any central or state revenue \nauthorities; or  \n(v) a public prosecutor in connection wi th any criminal proceedings.  \n \nProvided that sharing of information shal l be  in accordance with such assurances of \nconfidentiality as the Board determines appropriate.  \nExplanation  - Nothing in th ese regulations  is intended to limit, or shall be construed to limit, the \nability of the public prosecutor to share such evidence wit h potential witnesses or accused  in \nconnection with any criminal proceedings . \n \n(3) The Original Information and identity provided by a n Informant  shall be  held in confidence \nand exempt ed from disclosure under  clauses (g) and (h) of sub -section (1) of  section 8 of the \nRight to Information Act, 2005  (No. 22 of 2005) . \n \n(4) Subject  to the law of evidence for the time being in force , nothing in these regulations shall \nprejudice the right of the Board to use or to rely on information received otherwise . \n  \n (5) No p erson shall have the right to compel disclosure of the  identity , existence of  an Informant  \nor the information provided by an Informant, except to the extent relied upon in any proceeding \ninitiated against such person by the Board.  \nExplanation  1. – The conf identiality in respect of the identity and existence of the Informant  \nshall be maintained throughout the process of investigation, inquiry and examination as well as \nduring  any proceedings  before the Board  and save where the evidence  of the Informant is \nrequired during such proceedings, advance notice of such evidence  may be provided to the \nnoticee at least  seven (7) working days prior to  the date of the scheduled hearing  for evidence . \nExplanation  2. – In proceedings before any authority other than the Boar d, the Board may \nrequest maintenance of confidentiality of the identity and existence of an Informant  in such \nproceeding . \n \n \nProtection against retaliation and victimisation  \n7I. (1) Every person required to have a Code of Conduct under these regulations sha ll ensure that \nsuch a Code of Conduct provides for suitable protection against any  discharge, termination, \ndemot ion, suspen sion, threat s, harass ment , directly or indirectly or discriminat ion against any \nemployee who files a Volunt ary Information Disclosure  Form , irrespective of whether the \ninformation is considered or rejected by the Board or he or she is eligible for a Reward  under \nthese regulations, by reason of : \n(i) filing a Voluntary Information Disclosure Form  under these regulations ; \n(ii)  testifying  in, participating in, or otherwise assisting or aiding the Board in a ny \ninvestigation, inquiry, audit, examination or  proceeding instituted or about to be instituted \nfor an alleged violation of insider trading laws  or in any manner aiding  the enforcement \naction  taken by the Board; or  \n(iii) breaching any confidentiality agreement or provisions of any terms and conditions of \nemployment or engagement solely to prevent any employee from cooperating with the \nBoard in any manner.  \nExplanation  1. - For the purpose of this Chapte r, “employee” means any individual who during \nemployment may become privy to information relating to violation of insider trading laws and  \n files a Voluntary Information Disclosure Form  under these regulations and is a director, partner, \nregular or contract ual employee, but does not include an advocate.  \nExplanation  2. - Nothing in this  regulation  shall require the employee to establish that,- \n(i) the Board has taken up any enforce ment  action  in furtherance of information provided by \nsuch person ; or \n(ii) the  information provided fulfils the criteria  of being considered as an Original \nInformation  under these regulations . \n \n(2) Nothing in these regulations shall prohibit a ny Informant  who believes that he or she has \nbeen subject to retaliation or victimisation b y his or her employer, from approaching the \ncompetent court or tribunal for appropriate relief . \n \n(3) Notwithstanding anything contained in sub -regulation (2), any employer who violates this \nChapter may be liable for penalty, debarment, suspension, and/or c riminal prosecution by the \nBoard, as the case may be:  \nProvided that nothing in these regulations will require the Board to direct re -instatement or \ncompensation by an employer.  \n \n(4) Nothing in these regulations shall diminish the rights  and privileges  of or remedies available  \nto any Informant under any other law in force.  \n \nVoid Agreements  \n7J. (1) Any term in an agreement  (oral or written) or Code of Conduct,  is void in so far as it \npurports to preclude any person, other than an advocate,  from submitting to  the Board \ninformation relating to the  violation of the securities laws  that has occurred, is occurring or has a \nreasonable belief that it would occur.  \n \n(2) No person shall by way of any threat or act impede an individual from communicating with \nthe Board,  including enforcing or threatening to enforce, a confidentiality agreement (other than \nagreements related to legal representations of a client and communications there under) with \nrespect to such communications.   \n Explanation . - No employer shall require an  employee to notify him of any Voluntary \nInformation Disclosure Form  filed with the Board or to seek its prior permission or consent or \nguidance of any person engaged by the employer before or after such filing.  \n \nNo Amnesty  \n7K. (1) Nothing in these regula tions shall be deemed to provide any amnesty or immunity to an \nInformant for violation of securities law.  \n \n(2) Where an action against an Informant  is deemed appropriate the Board may take into account \nthe co -operation rendered in the final determination o f any penalty, sanction, direction or \nsettlement thereof, as the case may be.  \n \n(3) Where an action against an Informant  is deemed appropriate, the Board while determining \nthe value of monetary sanctions shall not take into account the monetary sanctions th at the \nInformant  is ordered to pay or that which any other person is ordered to pay if the liability of \nsuch other person is based substantially on the conduct that the Informant  directed, planned, or \ninitiated.  \n \n(4) An Informant  who may be liable for enfo rcement action by the Board based on his or her \nconduct in connection with securities laws violations reported in the Voluntary Information \nDisclosure Form  filed with the Board, may simultaneously or at any time thereafter file an \napplication seeking settl ement with confidentiality under Chapter IX of the Securities and \nExchange Board of India ( Settlement Proceedings ) Regulations, 201 8. \n \n(5) Notwithstanding any action taken by the Board against an Informant, the Informant may, \nafter payment of any monetary amounts be eligible for a Reward.  \n \nFunctions of Informant  Incentive  Committee   \n7L. (1) The  Informant Incentive  Committee  shall be assisted by the Office of Informant \nProtection.  \n  \n (2) The Informant Incentive  Committee shall give its recommendations to the Board on the \nfollowing matters, - \ni. Eligibility of Informant for reward;  \nii. Determination under regulations 7E and 7G; and  \niii. Such other issues relating to Informant as the Board may require from time to time.  \n  \n(3) The Informant Incentive  Committee shall conduct i ts meetings in the manner specified by the \nBoard in this regard.  \n \nPublic dissemination and incentivisation of Informant . \n7M. (1) The Board shall upload on its website the following, - \ni. Annual report of the Office of Informant Protection;  \nii. Press release inform ing the public that an intimation to the Informant has been issued \nunder Regulation 7D;  \niii. Press release informing the public that a Reward has been paid under these \nregulations and the amount of Monetary Sanctions recovered pursuant to the \ninformation provid ed by the Informant;  \niv. The Order issuing the Reward;  \nExplanation . – Nothing in this regulation shall require the Boa rd to disclose information \nthat could identify the Informant or the information provided by the Informant. ] \n \nCHAPTER – IV \n \nCODES OF FAIR DISCL OSURE AND CONDUCT  \n \nCode of Fair Disclosure.  \n8. (1) The board of directors of every company, whose securities are listed on a stock \nexchange, shall formulate and publish on its official website, a code of practices and procedures \nfor fair disclosure of unpublished price sensitive information that it would follow in order to \nadhere to each of the principles set out in Schedule A to these regulations, without diluting the \nprovisions of these regulations in any manner.  ']"
1,"Within what period, which cannot be less than six months, shall a designated person who is permitted to trade not execute a contra trade?","The code of conduct shall specify the period, which in any event shall not be less than six months, within which a designated person who is permitted to trade shall not execute a contra trade.",,"[' \n 10. The code of conduct shall specify the period, which in any event shall not be less than  six \nmonths, within which a designated person who is permitted to trade shall not execute a contra \ntrade.  The compliance officer may be empowered to grant relaxation from strict application of \nsuch restriction for reasons to be recorded in writing provide d that such relaxation does not \nviolate these regulations. Should a contra trade be executed, inadvertently or otherwise, in \nviolation of such a restriction, the profits from such trade shall be liable to be disgorged for \nremittance to the Board for credit  to the Investor Protection and Education Fund administered by \nthe Board under the Act.  \n \n68[Provided that this shall not be applicable for trades pursuant to exercise of stock options. ] \n \n11. The code of conduct shall stipulate such formats as the board of d irectors  deems \nnecessary for making applications for pre -clearance, reporting of trades executed, reporting of \ndecisions not to trade after securing pre -clearance  69[***]  and for reporting level of holdings in \nsecurities at such intervals as may be determin ed as being necessary to monitor compliance with \nthese regulations.  \n \n12.  70[Without prejudice to the power of the Board under the Act, the code of conduct shall \nstipulate the sanctions and disciplinary actions, including wage freeze, suspension, recovery,  etc., \nthat may be imposed, by the listed company required to formulate a code of conduct under sub -\nregulation (1) of regulation 9, for the contravention of the code of conduct. Any amount \ncollected under this clause shall be remitted to the Board for cred it to the Investor Protection and \nEducation Fund administered by the Board under the Act. ] \n \n                                                           \n68 Inserted by Securities and Exchange Board of India (Prohibition of Insider Trading) (Amendment) Regulations, \n2018  (w.e.f. April 01, 2019)  \n69 Omitted by Securities and Exchange Board of India (Prohibition of Insider Trading) (Amendment) Regulations, \n2018  (w.e.f. April 01, 2019) which earlier read as “ recording of reasons  for such decisions”.  \n70 Substituted by Securities and Exchange Board of India (Prohibition of Insider Trading) (Amendment) \nRegulations, 2020 (w.e.f. July 17, 2020). Prior to the substitution, clause 12 read as  follows : - \n “Without prejudice to the power of  the Board under the Act, the code of conduct shall stipulate the \nsanctions and disciplinary actions, including wage freeze, suspension, recovery, clawback etc., that may be \nimposed, by the listed company required to formulate a code of conduct under sub -regulation (1) of \nregulation 9, for the contravention of the code of conduct”.   \n 13. The code of conduct shall specify that in case it is observed by the 71[listed company] \nrequired to formulate a code of conduct under sub -regulation (1) 72[***] of regulation 9, that \nthere has been a violation of these regulations, 73[it] shall  74[promptly inform the stock \nexchange(s) where the concerned securities are traded, in such form and such manner as may be \nspecified by the Board from time to time ].  \n \n75[14.  Designated persons shall be required to disclose names and Permanent Account Number \nor any other identifier authorized by law of the following persons to the company on an annual \nbasis and as and when the information changes:  \n \na) immediate relatives  \nb) persons with whom such designated person(s) shares a material financial \nrelationship  \nc) Phone, mobile and cell numbers which are used by them  \n \nIn addition, the names of educational institutions from which designated persons have graduated \nand names of their pa st employers shall also be disclosed on a one time basis.  \n \nExplanation – The term “material financial relationship” shall mean a relationship in which one \nperson is a recipient of any kind of payment such as by way of a loan or gift 76[from a designated \nperson] during the immediately preceding twelve months, equivalent to at least 25% 77[of the \nannual income of such designated person]  but shall exclude relationships in which the payment is \nbased on arm’s length transactions. ] \n                                                           \n71 Substituted for the word “persons” by Securities and Exchange Board of India (Prohibition of Insider Trading) \n(Amendment) Regulations, 2018  (w.e.f. April 01, 2019)  \n72 Omitted by  Securities and Exchange Board of India (Prohibition of Insider Trading) (Amendment) Regulations, \n2018  (w.e.f. April 01, 2019) which earlier read as “and sub -regulation (2)”  \n73 Substituted for the word “they” by Securities and Exchange Board of India (Prohi bition of Insider Trading) \n(Amendment) Regulations, 2018  (w.e.f. April 01, 2019)  \n74 Substituted for the words “inform the Board promptly” by Securities and Exchange Board of India (Prohibition of \nInsider Trading) (Amendment) Regulations, 2020 (w.e.f. July 1 7, 2020).  \n75 Inserted by Securities and Exchange Board of India (Prohibition of Insider Trading) (Amendment) Regulations, \n2018  (w.e.f. April 01, 2019)  \n76 Inserted by Securities and Exchange Board of India (Prohibition of Insider Trading) (Second Amendment) \nRegulations, 2019  (w.e.f. July 25, 2019)  \n77 Substituted for the words “of such payer’s annual income” by Securities and Exchange Board of India \n(Prohibition of Insider Trading) (Second Amendment) Regulations, 2019  (w.e.f. July 25, 2019)   \n  \n78[15. Listed entities shall have  a process for how and when people are brought ‘inside’ on \nsensitive transactions. Individuals should be made aware of the duties and responsibilities \nattached to the receipt of Inside Information, and the liability that attaches to misuse or \nunwarranted u se of such information. ] \n \n \n                                                           \n78 Inserted by Securit ies and Exchange Board of India (Prohibition of Insider Trading) (Amendment) Regulations, \n2018 (w.e.f. April 01, 2019)   \n 79[SCHEDULE C  \n[See sub -regulation (1) and sub -regulation (2) of regulation 9]  \n \nMinimum Standards for Code of Conduct for Intermediaries and Fiduciaries to Regulate, \nMonitor and Report Trading by Designated Persons  \n \n1. The complia nce officer shall report to the board of directors or head(s) of the organisation (or \ncommittee constituted in this regard) and in particular, shall provide reports to the Chairman of \nthe Audit Committee or other analogous body, if any, or to the Chairman of the board of \ndirectors or head(s) of the organisation at such frequency as may be stipulated by the board of \ndirectors or head(s) of the organization but not less than once in a year.  \n \n2. All information shall be handled within the organisation on a nee d-to-know basis and no \nunpublished price sensitive information shall be communicated to any person except in \nfurtherance of legitimate purposes, performance of duties or discharge of legal obligations. The \ncode of conduct shall contain norms for appropriat e Chinese Wall procedures, and processes for \npermitting any designated person to “cross the wall”.  \n \n3. Designated persons and immediate relatives of designated persons in the organisation shall be \ngoverned by an internal code of conduct governing dealing in securities.  \n \n4. Designated persons may execute trades subject to compliance with these regulations. Trading \nby designated persons shall be subject to pre - clearance by the compliance officer(s), if the value \nof the proposed trades is above such threshol ds as the board of directors or head(s) of the \norganisation may stipulate.  \n \n5. The compliance officer shall confidentially maintain a list of such securities as a “restricted \nlist” which shall be used as the basis for approving or rejecting applications fo r pre -clearance of \ntrades.  \n                                                           \n79 Inserted by Securities and Exchange Board of India (Prohibition of Insider Trading) (Amendment) Regulations, \n2018  (w.e.f. April 01, 201 9) ']"
2,"What is meant by 'unpublished price sensitive information' as per the SEBI (Prohibition of Insider Trading) Regulations, 2015?",Information that is not generally available and is likely to affect the market price of securities.,,"[' \n THE GAZETTE OF INDIA  \nEXTRAORDINARY  \nPART – III – SECTION 4  \nPUBLISHED BY AUTHORITY  \nNEW DELHI , JANUARY  15, 2015  \nSECURITIES AND EXCHANGE BOARD OF INDIA  \nNOTIFICATION  \nMumbai, the 15th January , 2015  \nSECURITIES AND EXCHANGE BOARD OF INDIA  \n(PROHIBITION OF INSIDER T RADING) REGULATIONS, 2015  \nNo. LAD -NRO/GN/2014 -15/21/85 .- In exercise of the powers conferred by section 30 read with \nclause (g) of sub -section (2) of section 11 and clause (d) and clause (e) of section 12A of the \nSecurities and Exchange Board of India Act,  1992 (15 of 1992), the Board hereby makes the \nfollowing regulations, to put in place a framework for prohibition of insider trading in securities \nand to strengthen the legal framework thereof, namely: — \n \nCHAPTER – I \n \nPRELIMINARY  \n \nShort title and commenceme nt. \n1. (1) These regulations may be called the SEBI (Prohibition of Insider Trading) \nRegulations, 2015 . \n \n(2) These regulations shall come into force on the one hundred and twentieth day from the \ndate of its publication in the Official Gazette.   \n  \nDefinitions . \n2. (1) In these regulations, unless the context otherwise requires, the following words, \nexpressions and derivations therefrom shall have the meanings assigned to them as under: –  \n \n(a) “Act” means the Securities and Exchange Board of India Act, 1992 (15 of 1992);  \n \n(b) “Board” means the Securities and Exchange Board of India;  \n \n(c)  “compliance officer” means any senior officer, designated so  and reporting to the \nboard of directors  or head of the organization  in case board is not there , who is \nfinancially l iterate and is capable of appreciating requirements for legal and regulatory \ncompliance under these regulations  and who shall be responsible for compliance of \npolicies, procedures, maintenance of records, monitoring adherence to the rules for the \npreservat ion of unpublished price sensitive information, monitoring of trades and the \nimplementation of the codes specified in these regulations under the overall supervision \nof the board of  directors of  the listed company or the head of an organization , as the cas e \nmay be . \n \n1[Explanation – For the purpose of this regulation , “financially literate” shall mean a \nperson who has the ability to read and understand basic financial statements i.e. balance \nsheet, profit and loss account, and statement of cash flows ]; \n \n(d) ""connected person"" means ,- \n(i) any person who  is or has during the six months prior to the concerned act been \nassociated with a company, directly or indirectly, in any capacity including  by \nreason of frequent communication with its officers or by being in  any contractual, \nfiduciary or employment relationship  or by being a director, officer or an \nemployee of the company or holds any position  including a professional or \n                                                           \n1 Inserted b y Securities and Exchange Board of India (Prohibition of Insider Trading) (Amendment) Regulations, \n2018  (w.e.f. April 01, 2019)   \n business relationship between himself and the company  whether temporary or \npermanent,  that allows such person , directly or indirectly,  access to unpublished \nprice sensitive information or is reasonably expected to allow such access .  \n \n(ii) Without prejudice to the generality of the foregoing, the persons falling within \nthe following categories shall be deemed to be connected persons  unless the \ncontrary is established,  -  \n(a). an immediate relative of connected persons specified in clause (i); or  \n(b). a holding company or associate company or subsidiary company; or  \n(c). an intermediary as specified in section 12 of the Act  or an employee or \ndirector thereof ; or  \n(d). an investment company, trustee company, asset management company or \nan employee or director thereof; or  \n(e). an official of a stock exchange or of clearing house or corporation; or  \n(f). a member of board of trus tees of a mutual fund or a member of the board \nof directors of the asset management company of a mutual fund or is an \nemployee thereof; or  \n(g). a member of the board of directors or an employee, of a public financial \ninstitution as defined in section 2 (72) of  the Companies Act , 2013; or \n(h). an official or an employee of a self-regulatory organization recognised or \nauthorized  by the Board ; or \n(i). a banker of the company;  or \n(j). a concern, firm, trust, Hindu undivided family, company or association of \npersons wherein a director of a company or his immediate relative or \nbanker of the company,  has more than ten per cent . of the holding or \ninterest ; \n \nNOTE : It is intended that a connected person is one who has a connection with \nthe company that is expected to put him in possessi on of unpublished price sensitive \ninformation. Immediate relatives and other categories of persons specified above are also \npresumed to be connected persons but such a presumption is a deeming legal fiction and  \n is rebuttable.  This definition is also intend ed to bring into its ambit persons who may not \nseemingly occupy any position in a company but are in regular touch with the company \nand its officers and are involved in the know of  the company ’s operat ions. It is intended \nto bring within its ambit those w ho would have access to or could access unpublished \nprice sensitive information about any company or class of companies by virtue of any \nconnection that would put them in possession of unpublished price sensitive information.  \n \n(e) ""generally available inf ormation"" means information that is accessible to the \npublic on a non -discriminatory basis;  \n \nNOTE : It is intended to define what constitutes generally available information so \nthat it is easier to crystallize and appreciate what unpublished price sensitive  information \nis.  Information published on the website of a stock exchange, would ordinarily be \nconsidered generally available.   \n \n(f)  “immediate relative” means a spouse of a person, and includes parent, sibling, and \nchild of such person or of the spouse , any of whom is either dependent financially on \nsuch person, or consults such person in taking decisions relating to trading in securities;  \n \nNOTE :  It is intended that the immediate relatives of a “connected person” too \nbecome connected persons for purpos es of these regulations. Indeed, this is  a rebuttable \npresumption . \n \n(g) ""insider"" means any person who is:  \n \ni)  a connected person;  or  \n \nii)  in possession of  or having access to unpublished price sensitive \ninformation;   \n  \n NOTE : Since “generally available i nformation” is defined, it is intended that \nanyone in possession of or having access to unpublished price sensitive information \nshould be considered an “insider” regardless of how one came in possession of or had \naccess to such information. Various circums tances are provided for such a person to \ndemonstrate that he has not indulged in insider trading. Therefore, this definition is \nintended to bring within its reach any person who is in receipt of  or has access to  \nunpublished price sensitive information. The  onus of showing that a certain person was \nin possession of or had access to unpublished price sensitive information at the time of \ntrading would, therefore, be on the person leveling the charge after which the person who \nhas traded when in possession of or having access to unpublished price sensitive \ninformation may demonstrate that he was not in such possession or that he has not traded \nor or he c ould not access or that his trading when in possession of such information was \nsquarely covered by the exonera ting circumstances .   \n \n(h) ""promoter"" shall have the meaning assigned to it under the Securities and \nExchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, \n2[2018] or any modification thereof ; \n \n3[(ha)  ""promoter group"" shall ha ve the meaning assigned to it under the Securities and Exchange \nBoard of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 or any \nmodification  thereof;]  \n \n4[(5[hb]) “proposed to be listed” shall include securities of an unlisted company : \n(i) if such unlisted company has filed offer documents or other documents, as the \ncase may be, with the Board, stock exchange(s) or registrar of companies in \nconnection with the listing; or  \n                                                           \n2 Substituted for the number “2009” by Securities and Exchange Board of India (Prohibition of Insider Trading) \n(Amendment) Regul ations, 2018 (w.e.f. April 01, 2019)   \n3 Inserted by Securities and Exchange Board of India (Prohibition of Insider Trading) (Amendment) Regulations, \n2019 (w.e.f. January 21, 2019)  \n4 Inserted by Securities and Exchange Board of India (Prohibition of Inside r Trading) (Amendment) Regulations, \n2018  (w.e.f. April 01, 2019)  \n5 Re-numbered by Securities and Exchange Board of India (Prohibition of Insider Trading) (Amendment) \nRegulations, 2019 (w.e.f. January 21, 2019)  ']"
3,How is the confidentiality of the Informant's identity protected under the SEBI regulations?,"The Office of Informant Protection is responsible for maintaining the confidentiality of the Informant's identity, and the Board is not required to send any intimation or acknowledgement to the Informant or any other person regarding the examination or action initiated by the Board.",,"[' \n (b) Has obtained a irrevocable consent from the Informant  to provide to the Board with \norigin al Voluntary Information Disclosure Form whenever required by the Board; \nand \n(c) Agrees to be legally obligated to provide the original Voluntary Information \nDisclosure Form within seven (7) calendar days of receivi ng such requests from the \nBoard.  \niv. Submit s to the Board , the copy of the Voluntary Information Disclosure Form in the \nmanner provided in Schedule D of these regulations along with a signed certificate as \nrequired under clause  (iii) of this sub -regulation (2) . \n \n(3) An Informant shall while submitting  the Volunt ary Information Disclosure Form shall \nexpunge such information from the content of the information which could reasonably be \nexpected to reveal his or her identity  and in case where such information cannot be expunged, \nthe Informant may identify such part of information or any document that the Informant believes \ncould reasonably be expected to reveal his or her identity . \n \nReceipt  of Original Information by the Board  \n7C. (1) The Board may designate a division to function as the independent Office of  Informant \nProtection.  \n \n(2) The Office of Informant Protection shall perform such functions as may be specified by the \nBoard, including, - \ni. Receiving and registering the Volunt ary Information Disclosure Form;  \nii. Making all necessary communications with the Info rmant;  \niii. Maintain ing a hotline for the benefit of potential Informant;  \niv. Maintain ing confidentiality of the legal representative of the Informant and act as an \ninterface between the Informant and the officers of the Board;  \nv. Interacting with the Informant Incent ive Committee;  \nvi. Issuing press releases and rewards relating to Informant; and  \nvii. Submit ting an annual report to the Board relating to the functioning of the Office of \nInformant Protection.   \n  \n(3) On receipt of the Volunt ary Information Disclosure Form, the  Office of Informant Protection \nshall communicate the substance of the information along with the evidence submitted by the \ninformant to the relevant department or division of the Board for examination and initiation of \nnecessary action, if any.  \n \n(4) The Board shall not be required to send any intimation or acknowledgement to the Informant \nor any other person, of the examination or action initiated by the Board, if any,  pursuant to \nreceipt of the Volunt ary Information Disclosure Form or information under these r egulations, \nincluding rejection thereof.  \n \nInformant  Reward.  \n7D. (1) 29[The] Board may at its sole discretion, declare a n Informant eligible for Reward and \nintimate the Informant or his or her legal representative to file an application in the format \nprovide d in Schedule -E for claiming such Reward:  \nProvided that the amount of Reward shall be ten percent of the monetary sanctions 30[***] and \nshall not exceed Rupees 31[ten crores] or such higher amount as the Board may specify from time \nto time:  \n32[***]  \n \n33[(1A) If  the total reward payable is less than or equal to Rupees One Crore, the Board may \ngrant the said reward upon the issuance of the final order by the Board:  \n                                                           \n29 Substituted for the word s ""Upon collection or substantial recovery of the monetary sanctions amounting to at least \ntwice the Reward, the "" by the Securities and Exchange Board of India (Prohibition  of Insider Trading)  (Second \nAmendment) Regulations, 2021  (w.e.f. August 05, 2021 ) \n30 Omitted  the words “ collected or recovered ” by the Securities and Exchange Board of India (Prohibition  of Insider \nTrading)  (Second Amendment) Regulations, 2021 (w.e.f. August 05, 2021)  \n31 Substituted for the word s ""one crore "" by the Securities and Exchange Board of India (Prohibition  of Insider \nTrading)  (Second Amendment) Regulations, 2021  (w.e.f. August 05, 2021 ) \n32 Omitted by Securities and Exchange Board of India (Prohibition of Insider Trading) ( Second Amendment) \nRegulations , 2021 (w.e.f. August 05 , 2021). Prior to omission, second proviso read as under:  \n“Provided further that the Board may if deemed fit, out of the total Reward payable, grant an interim reward not \nexceeding Rupees Ten lacs or such higher amount as the Board may specify from time to time, on the issue of final \norder by the Board against the person directed to disgorge. ” \n33 Inserted  by the Securities and Exchange Board of India (Prohibition of Insider Trading) (Amendment) (Second \nAmendment) Regulations, 2021 (w. e.f. August 05, 2021)   \n Provided that in case the total reward payable is more than Rupees One Crore, the Board may \ngrant an  interim reward not exceeding Rupees One Crore upon the issuance of the final order by \nthe Board and the remaining reward amount shall be paid only upon collection or recovery of the \nmonetary sanctions amounting to at least twice the  balance reward amount payable.]  \n \n(2) In case of more than one Informant jointly providing the Original I nformation, the Reward,  \nas specified in the  intimation under  sub-regulation ( 1), shall be divided equally amongst the total \nnumber of Informants . \n \n(3) 34[Any reward, whether i nterim or otherwise ] under these regulations shall be paid from the \nInvestor Protection and Education Fund . \n \n35[NOTE : An illustrative table of the reward payable under this provision is stated below:  \nIllustrative table of the reward payable  \n(Amount in crore  rupees)  \nA.  Monetary Sanctions  \n ≥ 100.00  20.00  \n 10.00  5.00 1.00 \nB.  Total Reward \nPayable  \n= 10% of Monetary \nSanctions subject to \nmaximum of \nRupees 10.0 crores.  \n 10.00  2.00 1.00 0.50 0.10 \nC.  Maximum Amount \nPayable as Interim \nReward (on the \nissuance of final \norder  by the Board \nagainst the person \ndirected to \ndisgorge)  \n= Total Reward \nPayable (B) or 1.00 1.00 \n                                                           \n34 Substituted for the word s ""The reward "" by the Securities and Exchange Board of India (Prohibition of Insider \nTrading) (Second Amendment) Regulations, 2021  (w.e.f. August 05, 2021 ) \n35 Inserted  by the Securities and Exchange Board of I ndia (Prohibition of Insider Trading) (Second Amendment) \nRegulations, 2021 (w.e.f. August 05, 2021)   \n Rupees 1.00 Crore, \nwhichever is less.  \n \nD.  Balance Amount of \nReward Payable (B \n- C).  \n 9.00 1.00 NIL because the entire reward \nwas paid after passing of final \norder \nE.  Minimum Amount to \nbe collected / \nrecovered by SEBI, \nfor balance amount \nof reward (D) to \nbecome payable  \n= Twice the \nBalance Amount of \nReward Payable (2 \nx D).  \n 18.00  2.00 \n Not \nApplicable \nas the \namount of \ninterim \nreward \nitself is \nequal to \ntotal \neligib le \nreward  Not \nApplicable \nas the \namount of \ninterim \nreward \nitself is \nequal to \ntotal \neligible \nreward  Not \nApplicable \nas the \namount of \ninterim \nreward \nitself is \nequal to \ntotal \neligible \nreward  \n] \nDetermination of amount of Reward.  \n7E. (1) The amount of the Reward , if payable , shall be determined by the Board.  \n \n(2) While  determining the amount of Reward under sub -regulation (1), the Board may specify \nthe factors that may be taken into consideration by the Informant Incentive Committee.  \n \n(3) An Informant  may be elig ible for a Reward whether or not he reported the matter to his \norganization as per its internal  legal and compliance procedures and irrespective of  such \norganization’s  compliance officer subsequently provid ing the same Information to the Board.  \n \nApplicatio n for Reward.  \n7F. (1) Informants  who are  considered tentatively  eligible for a Reward, shall submit th e \nInformant  Reward Claim F orm set out in Schedule E to the Board within the period specified in  \nthe intimation sent by the Board . \n  \n (2) Prior to the paymen t of a Reward, a n Informant  shall directly or through his or her legal \nrepresentative , disclose his or her  identity and provide such other information as the Board may \nrequire.  \n \nRejection of claim for Reward.  \n7G. No Reward shall be made  to an Informant :- \n(1) who does not submit original information;  \n(2) who has acquired the Original Information, through or as a member, officer, or an employee \nof:- \n(i)  any regulatory agency  constituted by or under any law in India or outside India, including \nthe Board ; \n(ii)  any self-regulatory organization;  \n(iii)      the surveillance or investigation wings of any recognised stock exchange or clearing \ncorporation;  or \n(iv)  any law enforcement organization  including the police or any central or state revenue \nauthorities.  \n(3) against whom the Board may initiate or has initiated criminal proceedings under securities laws ; \n(4) who wilfully refuse d to cooperate with the Board during its course of investigation , inquiry, \naudit, examination or other proceedings under securities law s;  \n(5) who:  \n(i) knowingly makes any false, fictitious, or fraudulent statement or representation; or  \n(ii) uses any false writing or document knowing that the writing or document contains any \nfalse, fictitious, or fraudulent statement or entry;  or  \n(iii) fails to furnish the complete information available with him or accessible by him in \nrelation to the alleged violation.  \n(6) who is obligated, under any law or otherwise, to report such Original Information to the Board , \nincluding a compliance officer under  securities laws . \nProvided that the Board may  if deemed fit , at its sole discretion, exempt a person from any of \nthese disqualification s. \n \nInformant  confidentiality.  ']"
4,How long should the trading plan not entail commencement of trading on behalf of the insider after public disclosure of the plan?,Not earlier than six months from the public disclosure of the plan.,,"[' \n maintained containing the nature of unpublished price sensitive information and the names of \nsuch persons who have shared the information and a lso the names of such persons with whom \ninformation is shared under this regulation along with the Permanent Account Number or any \nother identifier authorized by law where Permanent Account Number is not available. Such \ndatabase shall not be outsourced and  shall be maintained internally with adequate internal \ncontrols and checks such as time stamping and audit trails to ensure non -tampering of the \ndatabase. ] \n \n16[(6) The board of directors or head(s) of the organisation of every person required to handle \nunpu blished price sensitive information shall ensure that the structured digital database is \npreserved for a period of not less than eight years after completion of the relevant transactions \nand in the event of receipt of any information from the Board regardi ng any investigation or \nenforcement proceedings,  the relevant information in the structured digital database  shall be \npreserved till the completion of such proceedings .] \n \n \nTrading when in possession of unpublished price sensitive information.  \n4. (1) No ins ider shall trade in securities that are listed or proposed to be listed on a \nstock exchange when in possession of unpublished price sensitive information:  \n \n17[Explanation –When a person who has traded in securities has been in possession of \nunpublished pric e sensitive information, his trades would be presumed to have been motivated \nby the knowledge and awareness of such information in his possession .] \n \n Provided that the insider may prove his innocence by demonstrating the circumstances \nincluding the followi ng: – \n                                                                                                                                                                                           \navailable. Such databases shall be maintained with adequate internal controls and ch ecks such as time stamping and \naudit trails to ensure non -tampering of the database. ” \nEarlier, sub -regulation 5 was inserted by Securities and Exchange Board of India (Prohibition of Insider Trading) \n(Amendment) Regulations, 2018  (w.e.f. April 01, 2019).  \n16 Inserted by Securities and Exchange Board of India (Prohibition of Insider Trading) (Amendment) Regulations, \n2020 (w.e.f. July 17, 2020).  \n17 Inserted by Securities and Exchange Board of India (Prohibition of Insider Trading) (Amendment) Regulations, \n2018  (w.e.f. April 01, 2019)   \n  \n(i) the transaction is an off -market inter -se transfer between 18[insiders]  who were in \npossession of the same unpublished price sensitive information without being in breach \nof regulation 3 and both parties had made a conscious and informed trade de cision . \n \n19[Provided that such unpublished price sensitive information was not obtained under \nsub-regulation (3) of regulation 3 of these regulations . \n \nProvided further that such off -market trades shall be reported by the insiders to the \ncompany within two working days. Every company shall notify the particulars of such \ntrades to the stock exchange on which the securities are listed within two trading days \nfrom receipt of the disclosure or from becoming aware of such information. ]; \n \n20[(ii) the transaction wa s carried out through the block deal window mechanism between \npersons who were in possession of the unpublished price sensitive information without \nbeing in breach of regulation 3 and both parties had made a conscious and informed trade \ndecision;  \nProvided that such unpublished price sensitive information was not obtained by either \nperson under sub -regulation (3) of regulation 3 of these regulations.  \n  \n(iii) the transaction in question was carried out pursuant to a statutory or regulatory \nobligation to carry  out a bona fide transaction.  \n \n(iv) the transaction in question was undertaken pursuant to the exercise of stock options \nin respect of which the exercise price was pre -determined in compliance with applicable \nregulations. ] \n \n                                                           \n18 Substituted for the word “promoters” by Securities and Exchange Board of India (Prohibition of Insider Trading) \n(Amendment) Regulations, 2018  (w.e.f. April 01, 2019)  \n19 Inserted by Securities and Exchange Board of India (Prohibition  of Insider Trading) (Amendment) Regulations, \n2018  (w.e.f. April 01, 2019)  \n20 Inserted by Securities and Exchange Board of India (Prohibition of Insider Trading) (Amendment) Regulations, \n2018  (w.e.f. April 01, 2019)   \n (v) in the case of non -individu al insiders: –  \n \n(a)  the individuals who were in possession of such unpublished price sensitive \ninformation were different from the individuals taking trading decisions and such \ndecision -making individuals were not in possession of such unpublished price \nsensitive information when they took the decision to trade; and  \n \n(b) appropriate and adequate arrangements were in place to ensure that these \nregulations are not violated and no unpublished price sensitive information was \ncommunicated by the individuals po ssessing the information to the individuals \ntaking trading decisions and there is no evidence of such arrangements having \nbeen breached;  \n \n(vi) the trades were pursuant to a trading plan set up in accordance with regulation 5.  \n \nNOTE : When a person who has t raded in securities has been in possession of \nunpublished price sensitive information, his trades would be presumed to have been \nmotivated by the knowledge and awareness of such information in his possession. The \nreasons for which he trades or the purposes  to which he applies the proceeds of the \ntransactions are not intended to be relevant for determining whether a person has \nviolated the regulation . He traded when in possession of unpublished price sensitive \ninformation is what would need to be demonstrate d at the outset to bring a charge. Once \nthis is established, it would be open to the insider to prove his innocence by \ndemonstrating the circumstances mentioned in the proviso, failing which he would have \nviolated the prohibition.  \n \n(2)  In the case of conn ected persons the onus of establishing, that they were not in possession \nof unpublished price sensitive information, shall be on such connected persons  and in other \ncases, the onus would be on the Board .  \n  \n (3) The Board may specify such standards and requi rements , from time to time, as it may \ndeem necessary for the purpose of  these regulations . \n \nTrading Plans.  \n5. (1) An insider shall be entitled to formulate a trading plan and present it to the \ncompliance officer for approval and public disclosure pursuant to which trades may be carried \nout on his behalf in accordance with such plan.  \n \nNOTE : This provision intends to give an option to persons who may be perpetually in \npossession of unpublished price sensitive information and enabling them to trade in securit ies in \na compliant manner.  This provision would enable the formulation of a trading plan by an \ninsider to enable him to plan for trades to be executed in future.  By doing so, the possession of \nunpublished price sensitive information when a trade under a trading plan is actually executed \nwould not prohibit the execution of such trades that he had pre -decided even before the \nunpublished price sensitive information came into being.  \n \n(2) Such trading plan shall: –  \n \n(i) not entail commencement of trading on b ehalf of the insider earlier than six \nmonths from the public disclosure of the plan;  \n \nNOTE : It is intended that to get the benefit of a trading plan, a cool -off period of \nsix months is necessary. Such a period is considered reasonably long for unpublished \nprice sensitive information that is in possession of the insider when formulating the \ntrading plan, to become generally available.  It is also considered to be a reasonable \nperiod for a time lag in which new unpublished price sensitive information may come  into \nbeing without adversely affecting the trading plan formulated earlier. In any case, it \nshould be remembered that this is only a statutory cool -off period and would not grant \nimmunity from action if the insider were to be in possession of the same unp ublished ']"
5,Who is responsible for putting in place adequate and effective systems of internal controls to ensure compliance with the requirements given in these regulations to prevent insider trading?,"The Chief Executive Officer, Managing Director or such other analogous person of a listed company, intermediary or fiduciary.",,"[' \n  \n(ii) Employees of material subsidiaries of such lis ted companies designated on the basis \nof their functional role or access to unpublished price sensitive information in the \norganization by their board of directors;  \n \n(iii) All promoters of listed companies and promoters who are individuals or investment \ncompanies for intermediaries or fiduciaries;  \n \n(iv) Chief Executive Officer and employees upto two levels below Chief Executive \nOfficer of such listed company, intermediary, fiduciary and its material subsidiaries \nirrespective of their functional role in the company or ability to have access to \nunpublished price sensitive information;  \n \n(v) Any support staff of listed company, intermediary or fiduciary such as IT staff or \nsecretarial staff who have access to unpublished price sensitive information. ] \n \n48[Institut ional Mechanism for Prevention of Insider trading.  \n9A.  (1) The Chief Executive Officer, Managing Director or such other analogous person of a \nlisted company, intermediary or fiduciary shall put in place adequate and effective system of \ninternal controls t o ensure compliance with the requirements given in these regulations to \nprevent insider trading.  \n \n(2) The internal controls shall include the following:  \n(a). all employees who have access to unpublished price sensitive information are \nidentified as designated  49[person] ; \n \n(b). all the unpublished price sensitive information shall be identified and its \nconfidentiality shall be maintained as per the requirements of these regulations;  \n                                                           \n48 Inserted by Securities and Exchange Board of India (Prohibition of Insider Trading) (Amendment) Regulatio ns, \n2018  (w.e.f. April 01, 2019)  \n49 Substituted for the word “employee” by Securities and Exchange Board of India (Prohibition of Insider Trading) \n(Second Amendment) Regulations, 2019  (w.e.f. July 25, 2019)   \n  \n(c). adequate restrictions shall be placed on communication or procurement of \nunpublished  price sensitive information as required by these regulations;  \n \n(d). lists of all employees and other persons with whom unpublished price sensitive \ninformation is shared shall be maintained and confidentiality agreements shall be \nsigned or notice shall be serv ed to all such employees and persons;  \n \n(e). all other relevant requirements specified under these regulations shall be complied \nwith;  \n \n(f). periodic process review to evaluate effectiveness of such internal controls.  \n \n(3) The board of directors of every listed co mpany and the board of directors or head(s) of the \norganisation of intermediaries and fiduciaries shall ensure that the Chief Executive Officer or the \nManaging Director or such other analogous person ensures compliance with regulation 9 and \nsub-regulations  (1) and (2) of this regulation.  \n \n(4) The Audit Committee of a listed company or other analogous body for intermediary or \nfiduciary shall review compliance with the provisions of these regulations at least once in a \nfinancial year and shall verify that th e systems for internal control are adequate and are operating \neffectively.  \n \n(5) Every listed company shall formulate written policies and procedures for inquiry in case of \nleak of unpublished price sensitive information or suspected leak of unpublished pr ice sensitive \ninformation, which shall be approved by board of directors of the company and accordingly \ninitiate appropriate inquiries on becoming aware of leak of unpublished price sensitive \ninformation or suspected leak of unpublished price sensitive inf ormation and inform the Board \npromptly of such leaks, inquiries and results of such inquiries.  \n  \n (6) The listed company shall have a whistle -blower policy and make employees aware of such \npolicy to enable employees to report instances of leak of unpublishe d price sensitive information.  \n \n(7) If an inquiry has been initiated by a listed company in case of leak of unpublished price \nsensitive information or suspected leak of unpublished price sensitive information, the relevant \nintermediaries and fiduciaries s hall co -operate with the listed company in connection with such \ninquiry conducted by listed company. ] \n \n \n \n \nCHAPTER – V \n \nMISCELLANEOUS  \n \nSanction for violations.  \n10. Any contravention of these regulations shall be dealt with by the Board in accordance \nwith th e Act.  \n \nPower to remove difficulties.  \n50[11. (1) In order to remove any difficulties in the interpretation or application of the \nprovisions of these regulations, the Board shall have the power to issue directions through \nguidance notes or circulars:                                               \n Provided that where any direction is issued by the Board in a specific case relating to \ninterpretation or application of any provision of these regulations, it shall be done only after \naffording a reasonable opportun ity of being heard to the concerned persons and after recording \nreasons for the direction. ] \n \n51[(2) For the purpose of Chapter IIIA, the  Board may, -  \n                                                           \n50 Renumbered as 11 (1) by Securities and Exchange Board of India (Prohibition of Insider Trading) (Third \nAmendment) Regulations, 2019  (w.e.f. December 26, 2019)   \n i. by circular, specify procedures and processes for carrying out  the pu rposes of these \nregulations;  \nii. remove a ny difficulty in the interpretation or application  or implementation of the   \nprovisions of these  regulations, by  issuing  clarifications and specifying  procedures \nthrough circulars or guidelines .] \n \nRepeal and Savings.  \n12. (1) The Securities and Exchange Bo ard of India (Prohibition of Insider Trading) \nRegulations, 1992 are hereby repealed.  \n \n(2)  Notwithstanding such repeal, — \n \n(a)  the previous operation of the repealed regulations or anything duly done or suffered \nthereunder, any right, privilege, obligation  or liability acquired, accrued or incurred under the \nrepealed regulations, any penalty, forfeiture or punishment incurred in respect of any offence \ncommitted against the repealed regulations, or any investigation, legal proceeding or remedy in \nrespect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment as \naforesaid, shall remain unaffected as if the repealed regulations had never been repealed; and  \n \n(b) anything done or any action taken or purported to have been done or taken including any \nadjudication, enquiry or investigation commenced or show -cause notice issued under the \nrepealed regulations prior to such repeal, shall be deemed to have been done or taken under the \ncorresponding provisions of these regulations;  \n \n(3)  After the repeal of Securities and Exchange Board of India (Prohibition of Insider \nTrading) Regulations, 1992, any reference thereto in any other regulations made, guidelines or \ncirculars issued thereunder by the Board shall be deemed to be a reference to the corresponding \nprovisions of these regulations.  \n \n                                                                                                                                                                                           \n51 Inserted by Securities and Exchange Board of India (Prohibition of Insider Trading) (Third Amendment) \nRegulations, 2019  (w.e.f. December 26, 20 19)  \n  \n \n \n \n  \n SCHEDULE A  \n \n[See sub -regulation (1) of regulation 8 ] \n \nPrinciples of Fair Disclosure for purposes of Code of Practices and Procedures for Fair \nDisclosure of Unpublished Price Sensitive  Information  \n \n1. Prompt public disclosure of unpublished price sensitive  information that would impact \nprice discovery no sooner than credible and concrete information comes into being in order to \nmake such information generally available.  \n \n2. Uniform and universal disse mination of unpublished price sensitive unpublished price \nsensitive information to avoid selective disclosure.  \n \n3. Designation of a senior officer as a chief investor relations officer to deal with \ndissemination of information and disclosure of unpublished  price sensitive  information.  \n \n4. Prompt dissemination of unpublished price sensitive  information that gets disclosed \nselectively, inadvertently or otherwise to make such information generally available.   \n \n5. Appropriate and fair response to queries on new s reports and requests for verification of \nmarket rumours by regulatory authorities.  \n \n6. Ensuring that information shared with analysts and research personnel is not unpublished \nprice sensitive information.  \n \n7. Developing best practices to make transcripts  or records of proceedings of meetings with \nanalysts and other investor relations conferences on the official website to ensure official \nconfirmation and documentation of disclosures made.  \n \n8. Handling of all unpublished price sensitive information on a ne ed-to-know basis.  ']"
6,What is the definition of 'trading' under the regulations?,"Trading means and includes subscribing, buying, selling, dealing, or agreeing to subscribe, buy, sell, deal in any securities, and 'trade' shall be construed accordingly.",,"[' \n (ii) if such unlisted company is getting listed pursuant to any  merger or \namalgamation and has filed a copy of such scheme of merger or amalgamation \nunder the Companies Act , 2013; ] \n \n(i) ""securities"" shall have the meaning assigned to it under the Securities Contracts \n(Regulation) Act, 1956 (42 of 1956) or any modifica tion thereof except units of a mutual \nfund;  \n \n(j) ""specified"" means specified by the Board in writing;  \n \n(k) “takeover regulations” means the Securities and Exchange Board of India \n(Substantial Acquisition of Shares and Takeovers) Regulations, 2011  and any \namendments  thereto ; \n \n(l) ""trading"" means and includes subscribing, buying, selling, dealing, or agreeing to \nsubscribe, buy, sell, deal in any securities, and ""trade"" shall be construed accordingly ;  \n \nNOTE : Under the parliamentary mandate, since the Section  12A (e) and Section \n15G of the Act employs the term \'dealing in securities\', it is intended to widely define the \nterm “trading” to include dealing. Such a construction is intend ed to curb the activities \nbased on unpublished price sensitive information whi ch are strictly not buying, selling or \nsubscribing, such as pledging etc when in possession of unpublished price sensitive \ninformation.   \n \n(m) “trading day” means a day on which the recognized stock exchanges are open for \ntrading;  \n \n(n) ""unpublished price s ensitive information"" means any information, relating to a \ncompany or its securities, directly or indirectly, that is not generally available which upon \nbecoming generally available, is likely to materially affect the price of the securities and \nshall,  ordinarily including but not restricted to,  information relating to the following: –  \n  \n(i) financial results;  \n \n(ii) dividends;  \n \n(iii) change in capital structure;  \n \n(iv) mergers, de -mergers, acquisitions, delistings, disposals and expansion of business \nand suc h other transactions;  \n \n(v) changes in key managerial personnel . \n \n6[***].  \n \nNOTE : It is intended that information relating to a company or securities, that is \nnot generally available would be unpublished price sensitive information if it is likely to \nmater ially affect the price upon coming into the public domain. The types of matters that \nwould ordinarily give rise to unpublished price sensitive information have been listed \nabove to give illustrative guidance of unpublished price sensitive information .  \n \n(2) Words and expressions used and not defined in these regulations but defined in the \nSecurities and Exchange Board of India Act, 1992 (15 of 1992), the Securities Contracts \n(Regulation) Act, 1956 (42 of 1956), the Depositories Act, 1996 (22 of 1996) or the  Companies \nAct, 2013 (18 of 2013) and rules and regulations made thereunder shall have the meanings \nrespectively assigned to them in those legislation.  \n \nCHAPTER – II  \n \nRESTRICTIONS ON COMMUNICATION AND TRADING BY INSIDERS  \n                                                           \n6 Omitted by Securities and Exchange Board of India (Prohibition of Insider Trading) (Amendment) Regulations, \n2018  (w.e.f. April 01, 2019) which earlier read as follows:  \n“(vi) material events in accordance with the listing agreement”   \n  \nCommunication or procurement of u npublished price sensitive information.  \n3. (1) No insider shall communicate, provide, or allow access to any unpublished price \nsensitive information, relating to a company or securities listed or proposed to be listed, to any \nperson including other insider s except where such communication is in furtherance of legitimate \npurposes, performance of duties or discharge of legal obligations.  \n \nNOTE : This provision is intended to cast an obligation on all insiders who are essentially \npersons in possession of unpub lished price sensitive information to handle such information with \ncare and to deal with the information with them when transacting their business strictly on a \nneed -to-know basis.  It is also  intended to lead to organisations developing practices based on  \nneed -to-know principles for treatment of information in their possession.  \n \n(2) No person shall procure from or cause the communication by any insider of unpublished \nprice sensitive information, relating to a company or securities listed or proposed to be listed, \nexcept in furtherance of legitimate purposes, performance of duties or discharge of legal \nobligations.  \n \nNOTE : This provision is intended to impose a prohibition on unlawfully procuring \npossession of unpublished price sensitive information.  Inducem ent and procurement of \nunpublished price sensitive information not in furtherance of one’s legitimate duties and \ndischarge of obligations would be illegal under this provision.  \n \n7[(2A)  The board of directors of a listed company shall make a policy for det ermination of \n“legitimate purposes” as a part of “Codes of Fair Disclosure and Conduct” formulated under \nregulation 8.  \n \nExplanation – For the purpose of illustration, the term “legitimate purpose” shall include sharing \nof unpublished price sensitive inform ation in the ordinary course of business by an insider with \n                                                           \n7 Inserted by Securities and Exchange Board of India (Prohibition of  Insider Trading) (Amendment) Regulations, \n2018  (w.e.f. April 01, 2019).   \n partners, collaborators, lenders, customers, suppliers, merchant bankers, legal advisors, auditors, \ninsolvency professionals or other advisors or consultants, provided that such sharing has not be en \ncarried out to evade or circumvent the prohibitions of these regulations .] \n \n8[(2B)  Any person in receipt of unpublished price sensitive information pursuant to a “legitimate \npurpose” shall be considered an “insider” for purposes of these regulations an d due notice shall \nbe given to such persons to maintain confidentiality of such unpublished price sensitive \ninformation in compliance with these regulations. ] \n  \n(3) Notwithstanding anything contained in this regulation, an unpublished price sensitive \ninfor mation may be communicated, provided, allowed access to or procured, in connection with \na transaction that would: – \n \n(i) entail an obligation to make an open offer under the takeover regulations where \nthe board of directors of the 9[listed] company is of in formed opinion that 10[sharing of \nsuch information]  is in the best interests of the company;  \n \nNOTE : It is intended to acknowledge the necessity of communicating, providing, \nallowing access to or procuring UPSI for substantial transactions such as takeovers,  \nmergers and acquisitions involving trading in securities and change of control to assess a \npotential investment.  In an open offer under the takeover regulations, not only would the \nsame price be made available to all shareholders of the company but also all information \nnecessary to enable an informed divestment or retention decision by the public \nshareholders is required to be made available to all shareholders in the letter of offer \nunder those regulations.   \n \n                                                           \n8 Inserted by Securities and Exchange Board of India (Prohibition of Insider Trading) (Amendment) Regulations, \n2018 (w.e.f. April 01, 2019)  \n9 Inserted by Securities and Exchange Boar d of India (Prohibition of Insider Trading) (Amendment) Regulations, \n2018  (w.e.f. April 01, 2019)  \n10 Substituted for the words “the proposed transaction” by Securities and Exchange Board of India (Prohibition of \nInsider Trading) (Amendment) Regulations, 201 8 (w.e.f. April 01, 2019).   \n (ii) not attract the obligation to make an o pen offer under the takeover regulations but \nwhere the board of directors of the 11[listed] company is of informed opinion 12[that \nsharing of such information]  is in the best interests of the company and the information \nthat constitute unpublished price sens itive information is disseminated to be made \ngenerally available at least two trading days prior to the proposed transaction being \neffected in such form as the board of directors may determine  13[to be adequate and fair \nto cover all relevant and material fa cts]. \n \nNOTE : It is intended to permit communicating, providing, allowing access to or \nprocuring UPSI also in transactions that do not entail an open offer obligation under the \ntakeover regulations 14[when authorised by the board of directors if sharing of s uch \ninformation]  is in the best interests of the company. The board of directors, however , \nwould cause public disclosures of such unpublished price sensitive information well \nbefore the proposed transaction to rule out any information  asymmetry in the mar ket. \n \n(4) For purposes of sub -regulation (3), the board of directors shall require the parties to \nexecute agreements to contract confidentiality and non -disclosure obligations on the part of such \nparties and such parties shall keep information so received confidential, except for the purpose of \nsub-regulation (3), and shall not otherwise trade in securities of the company when in possession \nof unpublished price sensitive information.  \n \n15[(5) The board of directors or head(s) of the organisation of every pers on required to handle \nunpublished price sensitive information shall ensure that a structured digital database is \n                                                           \n11 Inserted by Securities and Exchange Board of India (Prohibition of Insider Trading) (Amendment) Regulations, \n2018  (w.e.f. April 01, 2019)  \n12 Substituted for the words “that the proposed transaction” by Securities and Exchange Bo ard of India (Prohibition \nof Insider Trading) (Amendment) Regulations, 2018  (w.e.f. April 01, 2019)  \n13 Inserted by Securities and Exchange Board of India (Prohibition of Insider Trading) (Amendment) Regulations, \n2018  (w.e.f. April 01, 2019)  \n14 Substituted fo r the words “if it” by Securities and Exchange Board of India (Prohibition of Insider Trading) \n(Amendment) Regulations, 2018  (w.e.f. April 01, 2019)  \n15 Substituted by Securities and Exchange Board of India (Prohibition of Insider Trading) (Amendment) \nRegula tions, 2020 (w.e.f. July 17, 2020). Prior to the substitution, sub -regulation 5  read as  follows : -  \n“The board of directors shall ensure that a structured digital database is maintained containing the names of such \npersons or entities as the case may be wi th whom information is shared under this regulation along with the \nPermanent Account Number or any other identifier authorized by law where Permanent Account Number is not ']"
7,What happens if a contra trade is executed in violation of the restriction in the code of conduct?,The profits from such trade shall be liable to be disgorged for remittance to the Board for credit to the Investor Protection and Education Fund administered by the Board under the Act.,,"[' \n 10. The code of conduct shall specify the period, which in any event shall not be less than  six \nmonths, within which a designated person who is permitted to trade shall not execute a contra \ntrade.  The compliance officer may be empowered to grant relaxation from strict application of \nsuch restriction for reasons to be recorded in writing provide d that such relaxation does not \nviolate these regulations. Should a contra trade be executed, inadvertently or otherwise, in \nviolation of such a restriction, the profits from such trade shall be liable to be disgorged for \nremittance to the Board for credit  to the Investor Protection and Education Fund administered by \nthe Board under the Act.  \n \n68[Provided that this shall not be applicable for trades pursuant to exercise of stock options. ] \n \n11. The code of conduct shall stipulate such formats as the board of d irectors  deems \nnecessary for making applications for pre -clearance, reporting of trades executed, reporting of \ndecisions not to trade after securing pre -clearance  69[***]  and for reporting level of holdings in \nsecurities at such intervals as may be determin ed as being necessary to monitor compliance with \nthese regulations.  \n \n12.  70[Without prejudice to the power of the Board under the Act, the code of conduct shall \nstipulate the sanctions and disciplinary actions, including wage freeze, suspension, recovery,  etc., \nthat may be imposed, by the listed company required to formulate a code of conduct under sub -\nregulation (1) of regulation 9, for the contravention of the code of conduct. Any amount \ncollected under this clause shall be remitted to the Board for cred it to the Investor Protection and \nEducation Fund administered by the Board under the Act. ] \n \n                                                           \n68 Inserted by Securities and Exchange Board of India (Prohibition of Insider Trading) (Amendment) Regulations, \n2018  (w.e.f. April 01, 2019)  \n69 Omitted by Securities and Exchange Board of India (Prohibition of Insider Trading) (Amendment) Regulations, \n2018  (w.e.f. April 01, 2019) which earlier read as “ recording of reasons  for such decisions”.  \n70 Substituted by Securities and Exchange Board of India (Prohibition of Insider Trading) (Amendment) \nRegulations, 2020 (w.e.f. July 17, 2020). Prior to the substitution, clause 12 read as  follows : - \n “Without prejudice to the power of  the Board under the Act, the code of conduct shall stipulate the \nsanctions and disciplinary actions, including wage freeze, suspension, recovery, clawback etc., that may be \nimposed, by the listed company required to formulate a code of conduct under sub -regulation (1) of \nregulation 9, for the contravention of the code of conduct”.   \n 13. The code of conduct shall specify that in case it is observed by the 71[listed company] \nrequired to formulate a code of conduct under sub -regulation (1) 72[***] of regulation 9, that \nthere has been a violation of these regulations, 73[it] shall  74[promptly inform the stock \nexchange(s) where the concerned securities are traded, in such form and such manner as may be \nspecified by the Board from time to time ].  \n \n75[14.  Designated persons shall be required to disclose names and Permanent Account Number \nor any other identifier authorized by law of the following persons to the company on an annual \nbasis and as and when the information changes:  \n \na) immediate relatives  \nb) persons with whom such designated person(s) shares a material financial \nrelationship  \nc) Phone, mobile and cell numbers which are used by them  \n \nIn addition, the names of educational institutions from which designated persons have graduated \nand names of their pa st employers shall also be disclosed on a one time basis.  \n \nExplanation – The term “material financial relationship” shall mean a relationship in which one \nperson is a recipient of any kind of payment such as by way of a loan or gift 76[from a designated \nperson] during the immediately preceding twelve months, equivalent to at least 25% 77[of the \nannual income of such designated person]  but shall exclude relationships in which the payment is \nbased on arm’s length transactions. ] \n                                                           \n71 Substituted for the word “persons” by Securities and Exchange Board of India (Prohibition of Insider Trading) \n(Amendment) Regulations, 2018  (w.e.f. April 01, 2019)  \n72 Omitted by  Securities and Exchange Board of India (Prohibition of Insider Trading) (Amendment) Regulations, \n2018  (w.e.f. April 01, 2019) which earlier read as “and sub -regulation (2)”  \n73 Substituted for the word “they” by Securities and Exchange Board of India (Prohi bition of Insider Trading) \n(Amendment) Regulations, 2018  (w.e.f. April 01, 2019)  \n74 Substituted for the words “inform the Board promptly” by Securities and Exchange Board of India (Prohibition of \nInsider Trading) (Amendment) Regulations, 2020 (w.e.f. July 1 7, 2020).  \n75 Inserted by Securities and Exchange Board of India (Prohibition of Insider Trading) (Amendment) Regulations, \n2018  (w.e.f. April 01, 2019)  \n76 Inserted by Securities and Exchange Board of India (Prohibition of Insider Trading) (Second Amendment) \nRegulations, 2019  (w.e.f. July 25, 2019)  \n77 Substituted for the words “of such payer’s annual income” by Securities and Exchange Board of India \n(Prohibition of Insider Trading) (Second Amendment) Regulations, 2019  (w.e.f. July 25, 2019)   \n  \n78[15. Listed entities shall have  a process for how and when people are brought ‘inside’ on \nsensitive transactions. Individuals should be made aware of the duties and responsibilities \nattached to the receipt of Inside Information, and the liability that attaches to misuse or \nunwarranted u se of such information. ] \n \n \n                                                           \n78 Inserted by Securit ies and Exchange Board of India (Prohibition of Insider Trading) (Amendment) Regulations, \n2018 (w.e.f. April 01, 2019)   \n 79[SCHEDULE C  \n[See sub -regulation (1) and sub -regulation (2) of regulation 9]  \n \nMinimum Standards for Code of Conduct for Intermediaries and Fiduciaries to Regulate, \nMonitor and Report Trading by Designated Persons  \n \n1. The complia nce officer shall report to the board of directors or head(s) of the organisation (or \ncommittee constituted in this regard) and in particular, shall provide reports to the Chairman of \nthe Audit Committee or other analogous body, if any, or to the Chairman of the board of \ndirectors or head(s) of the organisation at such frequency as may be stipulated by the board of \ndirectors or head(s) of the organization but not less than once in a year.  \n \n2. All information shall be handled within the organisation on a nee d-to-know basis and no \nunpublished price sensitive information shall be communicated to any person except in \nfurtherance of legitimate purposes, performance of duties or discharge of legal obligations. The \ncode of conduct shall contain norms for appropriat e Chinese Wall procedures, and processes for \npermitting any designated person to “cross the wall”.  \n \n3. Designated persons and immediate relatives of designated persons in the organisation shall be \ngoverned by an internal code of conduct governing dealing in securities.  \n \n4. Designated persons may execute trades subject to compliance with these regulations. Trading \nby designated persons shall be subject to pre - clearance by the compliance officer(s), if the value \nof the proposed trades is above such threshol ds as the board of directors or head(s) of the \norganisation may stipulate.  \n \n5. The compliance officer shall confidentially maintain a list of such securities as a “restricted \nlist” which shall be used as the basis for approving or rejecting applications fo r pre -clearance of \ntrades.  \n                                                           \n79 Inserted by Securities and Exchange Board of India (Prohibition of Insider Trading) (Amendment) Regulations, \n2018  (w.e.f. April 01, 201 9) ']"
8,What is the requirement for listed companies in case of a leak of unpublished price sensitive information or suspected leak of unpublished price sensitive information?,"Every listed company shall formulate written policies and procedures for inquiry in case of leak of unpublished price sensitive information or suspected leak of unpublished price sensitive information, which shall be approved by the board of directors of the company, and initiate appropriate inquiries on becoming aware of leak of unpublished price sensitive information or suspected leak of unpublished price sensitive information.",,"[' \n  \n(ii) Employees of material subsidiaries of such lis ted companies designated on the basis \nof their functional role or access to unpublished price sensitive information in the \norganization by their board of directors;  \n \n(iii) All promoters of listed companies and promoters who are individuals or investment \ncompanies for intermediaries or fiduciaries;  \n \n(iv) Chief Executive Officer and employees upto two levels below Chief Executive \nOfficer of such listed company, intermediary, fiduciary and its material subsidiaries \nirrespective of their functional role in the company or ability to have access to \nunpublished price sensitive information;  \n \n(v) Any support staff of listed company, intermediary or fiduciary such as IT staff or \nsecretarial staff who have access to unpublished price sensitive information. ] \n \n48[Institut ional Mechanism for Prevention of Insider trading.  \n9A.  (1) The Chief Executive Officer, Managing Director or such other analogous person of a \nlisted company, intermediary or fiduciary shall put in place adequate and effective system of \ninternal controls t o ensure compliance with the requirements given in these regulations to \nprevent insider trading.  \n \n(2) The internal controls shall include the following:  \n(a). all employees who have access to unpublished price sensitive information are \nidentified as designated  49[person] ; \n \n(b). all the unpublished price sensitive information shall be identified and its \nconfidentiality shall be maintained as per the requirements of these regulations;  \n                                                           \n48 Inserted by Securities and Exchange Board of India (Prohibition of Insider Trading) (Amendment) Regulatio ns, \n2018  (w.e.f. April 01, 2019)  \n49 Substituted for the word “employee” by Securities and Exchange Board of India (Prohibition of Insider Trading) \n(Second Amendment) Regulations, 2019  (w.e.f. July 25, 2019)   \n  \n(c). adequate restrictions shall be placed on communication or procurement of \nunpublished  price sensitive information as required by these regulations;  \n \n(d). lists of all employees and other persons with whom unpublished price sensitive \ninformation is shared shall be maintained and confidentiality agreements shall be \nsigned or notice shall be serv ed to all such employees and persons;  \n \n(e). all other relevant requirements specified under these regulations shall be complied \nwith;  \n \n(f). periodic process review to evaluate effectiveness of such internal controls.  \n \n(3) The board of directors of every listed co mpany and the board of directors or head(s) of the \norganisation of intermediaries and fiduciaries shall ensure that the Chief Executive Officer or the \nManaging Director or such other analogous person ensures compliance with regulation 9 and \nsub-regulations  (1) and (2) of this regulation.  \n \n(4) The Audit Committee of a listed company or other analogous body for intermediary or \nfiduciary shall review compliance with the provisions of these regulations at least once in a \nfinancial year and shall verify that th e systems for internal control are adequate and are operating \neffectively.  \n \n(5) Every listed company shall formulate written policies and procedures for inquiry in case of \nleak of unpublished price sensitive information or suspected leak of unpublished pr ice sensitive \ninformation, which shall be approved by board of directors of the company and accordingly \ninitiate appropriate inquiries on becoming aware of leak of unpublished price sensitive \ninformation or suspected leak of unpublished price sensitive inf ormation and inform the Board \npromptly of such leaks, inquiries and results of such inquiries.  \n  \n (6) The listed company shall have a whistle -blower policy and make employees aware of such \npolicy to enable employees to report instances of leak of unpublishe d price sensitive information.  \n \n(7) If an inquiry has been initiated by a listed company in case of leak of unpublished price \nsensitive information or suspected leak of unpublished price sensitive information, the relevant \nintermediaries and fiduciaries s hall co -operate with the listed company in connection with such \ninquiry conducted by listed company. ] \n \n \n \n \nCHAPTER – V \n \nMISCELLANEOUS  \n \nSanction for violations.  \n10. Any contravention of these regulations shall be dealt with by the Board in accordance \nwith th e Act.  \n \nPower to remove difficulties.  \n50[11. (1) In order to remove any difficulties in the interpretation or application of the \nprovisions of these regulations, the Board shall have the power to issue directions through \nguidance notes or circulars:                                               \n Provided that where any direction is issued by the Board in a specific case relating to \ninterpretation or application of any provision of these regulations, it shall be done only after \naffording a reasonable opportun ity of being heard to the concerned persons and after recording \nreasons for the direction. ] \n \n51[(2) For the purpose of Chapter IIIA, the  Board may, -  \n                                                           \n50 Renumbered as 11 (1) by Securities and Exchange Board of India (Prohibition of Insider Trading) (Third \nAmendment) Regulations, 2019  (w.e.f. December 26, 2019)   \n i. by circular, specify procedures and processes for carrying out  the pu rposes of these \nregulations;  \nii. remove a ny difficulty in the interpretation or application  or implementation of the   \nprovisions of these  regulations, by  issuing  clarifications and specifying  procedures \nthrough circulars or guidelines .] \n \nRepeal and Savings.  \n12. (1) The Securities and Exchange Bo ard of India (Prohibition of Insider Trading) \nRegulations, 1992 are hereby repealed.  \n \n(2)  Notwithstanding such repeal, — \n \n(a)  the previous operation of the repealed regulations or anything duly done or suffered \nthereunder, any right, privilege, obligation  or liability acquired, accrued or incurred under the \nrepealed regulations, any penalty, forfeiture or punishment incurred in respect of any offence \ncommitted against the repealed regulations, or any investigation, legal proceeding or remedy in \nrespect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment as \naforesaid, shall remain unaffected as if the repealed regulations had never been repealed; and  \n \n(b) anything done or any action taken or purported to have been done or taken including any \nadjudication, enquiry or investigation commenced or show -cause notice issued under the \nrepealed regulations prior to such repeal, shall be deemed to have been done or taken under the \ncorresponding provisions of these regulations;  \n \n(3)  After the repeal of Securities and Exchange Board of India (Prohibition of Insider \nTrading) Regulations, 1992, any reference thereto in any other regulations made, guidelines or \ncirculars issued thereunder by the Board shall be deemed to be a reference to the corresponding \nprovisions of these regulations.  \n \n                                                                                                                                                                                           \n51 Inserted by Securities and Exchange Board of India (Prohibition of Insider Trading) (Third Amendment) \nRegulations, 2019  (w.e.f. December 26, 20 19)  \n  \n \n \n \n  \n SCHEDULE A  \n \n[See sub -regulation (1) of regulation 8 ] \n \nPrinciples of Fair Disclosure for purposes of Code of Practices and Procedures for Fair \nDisclosure of Unpublished Price Sensitive  Information  \n \n1. Prompt public disclosure of unpublished price sensitive  information that would impact \nprice discovery no sooner than credible and concrete information comes into being in order to \nmake such information generally available.  \n \n2. Uniform and universal disse mination of unpublished price sensitive unpublished price \nsensitive information to avoid selective disclosure.  \n \n3. Designation of a senior officer as a chief investor relations officer to deal with \ndissemination of information and disclosure of unpublished  price sensitive  information.  \n \n4. Prompt dissemination of unpublished price sensitive  information that gets disclosed \nselectively, inadvertently or otherwise to make such information generally available.   \n \n5. Appropriate and fair response to queries on new s reports and requests for verification of \nmarket rumours by regulatory authorities.  \n \n6. Ensuring that information shared with analysts and research personnel is not unpublished \nprice sensitive information.  \n \n7. Developing best practices to make transcripts  or records of proceedings of meetings with \nanalysts and other investor relations conferences on the official website to ensure official \nconfirmation and documentation of disclosures made.  \n \n8. Handling of all unpublished price sensitive information on a ne ed-to-know basis.  ']"
9,What are the requirements for the verification of documents lodged for sub-division or consolidation or renewal through the clearing house of the exchange?,"The company must verify when the company is unable to issue units or any other instruments or split receipt or consolidation receipts or renewal receipts immediately on lodgement whether the discharge of the registered holders, on the documents lodged for sub-division or consolidation or renewal and their signatures on the relative transfers are in order.",,"['(2) Apart from complying with such other terms and conditions as may be laid down by a \nrecognised stock exchange, an applicant shall s atisfy the stock exchange that :  \n (a) Its articles of association provide for the following among others — \n (i) that the company shall use a common form of transfer of units of a particular \nscheme;  \n (ii) that the fully paid units issued under the scheme wil l be free from all lien, \nwhile in the case of partly paid units the company’s lien, if any, will be \nrestricted to moneys called or payable at a fixed time in respect of such units;  \n (iii) that any amount paid -up in advance of calls on any units may carry i nterest \nbut shall not entitle the holder of the unit to participate in respect thereof, in a \nreturn subsequently declared;  \n (iv) there will be no forfeiture of unclaimed returns before the claim becomes \nbarred by law;  \n (v) that option or right to call of u nits shall not be given to any person except \nwith the sanction of the company in general meeting :  \n  Provided that a recognised stock exchange may provisionally admit to dealings the \nunits of a scheme which undertakes to amend its articles of association a t its next \ngeneral meeting so as to fulfil the foregoing requirements and agrees to act in the \nmeantime strictly in accordance with the provisions of this clause.  \n (b) At least twenty -five per cent of the units or any other instrument of a scheme \nissued by  the company was offered to the public for subscription through \nadvertisement in newspapers for a period not less than two days and not more than \nninety days, and that applications received in pursuance of such offer were allotted \nfairly and unconditionall y : \nProvided that a recognised stock exchange may relax this requirement, with the previous \napproval of the Securities and Exchange Board of India in respect of a Government \ncompany within the meaning of section 617 of the Companies Act, 1956 (1 of 1956) a nd \nsubject to such instructions as the Securities and Exchange Board of India may issue in \nthis behalf from time to time.  \nExplanation. —Where any part of the units or any other instruments sought to be listed \nhave been or are agreed to be taken up by the Ce ntral Government, a State Government, \ndevelopment or investment agency of a State Government, Industrial Development Bank \nof India, Industrial Finance Corporation of India, Industrial Credit and Investment \nCorporation of India Limited, Life Insurance Corpo ration of India, General Insurance \nCorporation of India and its subsidiaries, namely, the National Insurance Company \nLimited, the New India Assurance Company Limited, the Oriental Insurance Company \nLimited and the United Insurance Company Limited, or Unit Trust of India, the total \nsubscription to the units or any other instrument, whether by one or more of such bodies, \nshall not form part of the twenty -five per cent of the units or any other instrument to be \noffered to the public.  \n(3) A company applying for  listing of a scheme shall, as a condition precedent, \nundertake, inter alia ,— \n (a) (i) that letters of allotment of units or any other instrument will be issued \nsimultaneously and that, in the event of its being impossible to issue letters of regret at the  same time, a notice to that effect will be inserted in the press \nso that it will appear on the morning after the letters of allotment have been \nposted;  \n (ii) that letters of right will be issued simultaneously;  \n (iii) that letters of allotment, acceptance  or rights will be serially numbered, \nprinted on good quality paper and, examined and signed by a responsible \nofficer of the company and that whenever possible, they will contain the \ndistinctive numbers of the units or any other instrument to which they re late; \n (iv) that letters of allotment and renounceable letters of right will contain a \nproviso for splitting and that, when so required by the exchange, the form of \nrenunciation will be printed on the back of or attached to the letters of \nallotment and let ters of right;  \n (v) that letters of allotment and letters of right will state how the next payment of \ninterest or return on the units or any other instrument will be calculated;  \n (b) to issue, when so required, receipts for all units and any other instrume nt deposited \nwith it whether for registration, sub -division, exchange or for other purposes; and \nnot to charge any fees for registration of transfers, for sub -division and \nconsolidation of units and any other instrument and for sub -division of letters of \nallotment, renounceable letters of right, and split, consolidation, renewal and \ntransfer receipts into denominations of the market unit of trading;  \n (c) to issue, when so required, consolidation and renewal units or any other instrument \nin denominations of the market unit of trading, to split units or any other \ninstrument, letters of allotment, letters of right, and transfer, renewal, consolidation \nand split receipts into smaller units, to split call notices, issue duplicates thereof \nand not require any disc harge on call receipts and to accept the discharge of \nmembers of stock exchange on split, consolidation and renewal receipts as good \nand sufficient without insisting on the discharge of the registered holders;  \n (d) when documents are lodged for sub -divisio n or consolidation or renewal through \nthe clearing house of the exchange :  \n (i) to accept the discharge of an official of the stock exchange clearing house on \nthe company’s split receipts and consolidation receipts and renewal receipts \nas good and sufficie nt discharge without insisting on the discharge of the \nregistered holders; and  \n (ii) to verify when the company is unable to issue units or any other instruments \nor split receipt or consolidation receipts or renewal receipts immediately on \nlodgement whethe r the discharge of the registered holders, on the documents \nlodged for sub -division or consolidation or renewal and their signatures on \nthe relative transfers are in order;  \n (e) on production of the necessary documents by unit holders or by members of the \nexchange, to make on transfers an endorsement to the effect that the power of \nattorney or probate or letters of administration or death certificate or similar other \ndocument has been duly exhibited to and registered by the company;  \n (f) to issue certificat es in respect of units or any other instrument lodged for transfer \nwithin a period of one month of the date of lodgement of transfer and to issue balance units or any other instrument within the same period where the transfer is \naccompanied by a larger uni t or any other instrument certificate;  \n (g) to advise the stock exchange of the date of the board meeting at which the \ndeclaration or recommendation of a return or the issue or right or bonus units or \nany other instrument will be considered;  \n (h) to recomm end or declare all returns and/or cash bonuses at least five days before \nthe commencement of the closure of its transfer books or the record date fixed for \nthe purpose and to advise the stock exchange in writing of all returns and/or cash \nbonuses recommend ed or declared immediately after a meeting of the board of the \ncompany has been held to finalise the same;  \n (i) to notify the stock exchange of any change — \n (i) in the company’s directorate by death, resignation, removal or otherwise,  \n (ii) of managing dir ector,  \n (iii) of auditors appointed to audit the books and account of the company;  \n (j) to forward to the stock exchange copies of statutory and annual reports and audited \naccounts of such scheme as soon as issued, including directors’ report;  \n (k) to forw ard to the stock exchange as soon as they are issued copies of all other \nnotices and circulars sent to the unit/other instrument holders regarding any \nimportant development or resolutions passed by the company affecting the \nperformance of the scheme and to  file with the stock exchange certified copies of \nresolutions of the company as soon as such resolutions become effective;  \n (l) to notify the stock exchange prior to intimating the unit/any other instrument \nholders, of any new issue of units/other instrume nts whether by way of right, \nprivilege, bonus or otherwise and the manner in which it is proposed to offer or \nallot the same;  \n (m) to notify the stock exchange in the event of re -issue of any forfeited units/other \ninstruments or the issue of units/other in struments held in reserve for future issue;  \n (n) to notify the stock exchange of any other alteration of unit capital including calls;  \n (o) to close the transfer books only for the purpose of declaration of returns or issue of \nright or bonus units/any othe r instruments in the scheme or for such other purposes \nas the stock exchange may agree and to give notice to the stock exchange as many \ndays in advance as the exchange may from time to time reasonably prescribe, \nstating the dates of closure of its transfer  books or, when the transfer books are not \nto be closed, the date fixed for taking a record of its unit/other instrument holders \nand specifying the purpose or purposes for which the transfer books are to be \nclosed or the record is to be taken; and in the c ase of a right or bonus issue to so \nclose the transfer books or fix a record date only after the sanctions of the \ncompetent authority, subject to which the issue is proposed to be made, have been \nduly obtained, unless the exchange agrees otherwise;  \n (p) to forward to the stock exchange an annual return immediately after the preparation \nof annual accounts of at least ten principal holders of each class of units/any other \ninstruments of the company along with particulars as to the number of units/any \nother in strument held by, and address of, each such holder;  ']"
10,What are the conditions for a person to be eligible for admission as a member of a stock exchange?,"A person is eligible for admission as a member of a stock exchange if he is a citizen of India, is at least 21 years old, has a minimum of two years of experience in the securities business, and is not disqualified under any of the provisions of sub-rule (1) of rule 6.",,"[' (g) 11[***]  \n (h) he has been at any time expelled or declared a defaulter by any other stock \nexchange;  \n (i) he has been previously refused admission to membership unless a period of \none year has elapsed since the date of such rejection.  \n (2) No person eligible for admission as a member under sub -rule (1) shall be admitted \nas a member unless : — \n (a) he has worked for not less than two years as a partner with, or an authorised \nassistant or  authorised clerk or remisier or apprentice to, a member; or  \n (b) he agrees to work for a minimum period of two years as a partner or \nrepresentative member with another member and to enter into bargains on \nthe floor of the stock exchange and not in his own  name but in the name of \nsuch other member ; or  \n (c) he succeeds to the established business of a deceased or retiring member who \nis his father, uncle, brother or any other person who is, in the opinion of the \ngoverning body, a close relative :  \n  Provided that the rules of the stock exchange may authorise the governing \nbody to waive compliance with any of the foregoing conditions if the person \nseeking admission is in respect of means, position, integrity, knowledge and \nexperience of business in securities, considered by the governing body to be \notherwise qualified for membership.  \n (3) No person who is a member at the time of application for recognition or \nsubsequently admitted as a member shall continue as such if — \n (a) he ceases to be a citizen of India :  \n  Provided that nothing herein shall affect those who are not citizens of India \nbut who were members at the time of such application or were admitted \nsubsequently under the provisions of clause ( b) of sub -rule (1) of this rule, \nsubject to their complying wi th all other requirements of this rule;  \n (b) he is adjudged bankrupt or a receiving order in bankruptcy is made against \nhim or he is proved to be insolvent;  \n (c) he is convicted of an offence involving fraud or dishonesty;  \n (d) 12[* * *]  \n (e) 13[* * *]  \n (f) he engages either as principal or employee in any business other than that of \nsecurities  14[or commodity derivatives] except as a broker or agent not \ninvolving any personal financial liability, provided that — \n                                                                                                                                                 \n10 Substituted by the Securities Contracts (Regulation) (Second A mendment) Rules, 2017, w.e.f. \n27.06.2017. Prior to substitution it read as under:  \n“Provided further that nothing herein shall be applicable to any corporations, bodies corporate, companies \nor institutions referred to in items (a) to (n)10 of the proviso to sub-rule (4).];”  \nFootnote in above amendment read as under - “Substituted for ""(a) to (k)"" by Securities Contracts \n(Regulation) (Amendment) Rules, 2014, w.e.f.16.1.2014.”  \n11 Omitted by GSR 1070(E) dated 15.11.1988  \n12 Ibid. \n13 Ibid.   (i) the governing body may, for reasons, to be recorded in writing, permit a \nmember to engage himself as principal or employee in any such \nbusiness, if the member in question ceases to carry on business on the \nstock exchange either as an individual or as a partner in a firm,  \n (ii) in the case of those members who were under the rules in force at the \ntime of such application permitted to engage in any such business and \nwere actually so engaged on the date of such application, a period of \nthree years from the date of the grant of recognition shall be allo wed for \nsevering their connection with any such business,  \n15[(iii) nothing herein shall affect members of a recognised stock exchange \nwhich are corporations, bodies corporate, companies or institutions \nreferred to in items [(a) to ( n) of sub -rule (8) ]16. \n (4) A company as defined in the Companies Act, 1956 (1 of 1956), shall be eligible to \nbe elected as a member of a stock exchange if — \n (i) such company is formed in compliance with the provisions of section 322 of \nthe said Act;  \n (ii) a majority of the direct ors of such company are shareholders of such \ncompany and also members of that stock exchange; and  \n (iii) the directors of such company, who are members of that stock exchange, \nhave ult imate liability in such company.  \n  17[***] \n                                                                                                                                                 \n14 Inserted by the Securiti es Contracts (Regulation) (Amendment) Rules, 2003, w.e.f. 28.08.2003.  \n15 Substituted, ibid. Prior to its substitution, sub -clause (iii) read as under:  \n    “(iii) nothing herein shall affect members of a recognized stock exchange permitted under the proviso to \nclause (f) of sub -rule(1) to suspend the enforcement of the aforesaid clause, for so long as such \nsuspension is effective, except that no member of such exchange shall engage in forward business of any \nkind whether in goods or commodities or otherwise a nd , if actually so engaged on the date of such \napplication , he shall sever his connection with any such business within a period of three years from the \ndate of the grant of recognition.”  \n16 Substituted for “items (a) to (n) of the proviso to sub -rule (4) ”, by the Securities Contracts (Regulation) \n(Second Amendment) Rules, 2017, w.e.f. 27.06.2017.  \nPrior to this, Substituted ""(a) to (k)"" by Securities Contracts (Regu lation) (Amendment) Rules, 2014, \nw.e.f.16.1.2014  \n17 Omitted by the Securities Contracts (Regu lation) (Amendment) Rules, 2017, w.e.f. 20.03.2017.  Prior to \nomission th e proviso read as u nder- \n“Provided that where the17[Securities and Exchange Board of India] makes a recommendation in this \nregard, the governing body of a stock exchange shall, in relax ation of the requirements of this clause, admit \nas member the following corporations 18[,bodies corporate], companies or institutions, namely  :— \n(a) the Industrial Finance Corporation, established under the Industrial Finance Corporation Act, 1948 \n(15 of 1 948);  \n(b) the Industrial Development Bank of India, established under the Industrial Development Bank Act, \n1964 (18 of 1964);  \n 18[(c) any insurance company granted registration by the Insurance Regulatory Development Authority \nunder the Insurance Act, 1938  (4 of 1938)]   \n(d)19 [* * *]   \n(e)the Unit Trust of India, established under the Unit Trust of India Act, 1963 (52 of 1963);  \n(f)the Industrial Credit and Investment Corporation of India, a company registered under the Companies \nAct, 1956 (1 of 1956);     \n (4A) A company as defined in the Companies Act, 1956 (1 of 1956), shall also be \neligible to be elected as a member of a stock exchange if — \n (i) such company is formed in compliance with the provisions of section 12 of \nthe said Act;  \n (ii) such company undertakes to comply with such financial requirements and \nnorms as may be specified by the Securities and Exchange Board of India for \nthe registration of such company under sub -section (1) of section 12 of the \nSecurities and Exchange Board of India Act, 1992 (15 of 1992);  \n (iii) 18[* * * ] \n (iv) the directors of the company are not disqualified from being members of a \nstock exchange under  19[clause (1) [except sub -clause ( b) and sub -clause ( f) \nthereof] or clause (3) [except sub -clause ( a) and sub -clause ( f) thereof]] and \nthe Directors of th e company had not held the offices of the Directors in any \ncompany which had been a member of the stock exchange and had been \ndeclared defaulter or expelled by the stock exchange; and  \n (v) not less than two directors of the company are persons who possess a \nminimum two years’ experience :  \n                                                                                                                                                 \n(g)the subsidiaries of any of the corporations or companies specified in ( a) to ( f) and any subsidiary of \nthe State Bank of India or any nationalised bank set up for providing merchant banking services, buying \nand selling securities and other similar activiti es. \n20[(h)any bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934);  \n(i)the Export Import Bank of India, established under the Export Import Bank of India Act, 1981 (28 of \n1981);  \n(j)the National Bank for Agriculture and  Rural Development, established under the National Bank for \nAgriculture and Rural Development Act, 1981 (61 of 1981); and  \n(k)the National Housing Bank, established under the National Housing Bank Act, 1987 (53 of 1987).]  \n21[(l) Central Board of Trustees, Employees\' Provident Fund, established under the Employees\' Provident \nFunds and Miscellaneous Provisions Act, 1952 (19 of 1952);  \n(m) any pension fund registered or appointed or regulated by the Pension Fund Regulatory and \nDevelopment Authority under the P ension Fund Regulatory And Development Authority Act, 2013 (23 \nof 2013); and  \n(n) any Standalone Primary Dealers authorised by the Reserve Bank of India constituted under the \nReserve Bank of India Act, 1934 (2 of 1934)] ” \n Note - Footnotes  for the above amen ded portion are as under -  \n17 Inserted by the Securities Contracts (Regulation) (Amendment) Rules, 2003, w.e.f. 28.08.2003.  \n18 Substituted for"" the Life Insurance Corporation of India, established under the Life Insurance \nCorporation Act, 1956 (31 of 1956)""  by Securities Contracts (Regulation) (Amendment) Rules, \n2014, w.e.f.16.1.2014  \n19 Omitted, by Securities Contracts (Regulation) (Amendment) Rules, 2014. w.e.f.16.1.2014. Prior \nto its omission, item (d) read as under:  \n""the General Insurance Corporation of India constituted under the General Insurance Corporation \n(Nationalisation) Act, 1972 (57 of 1972)""  \n20 Inserted, ibid.  \n21Inserted by Securities Contracts (Regulation) (Amendment) Rules, 2014.  w.e.f.16.1.2014  \n \n18 Omitted by GSR 749 (E), dated 12.10.1994  \n19 Substituted by GSR 790(E), dated 07.11.1994  ']"
11,What is the definition of 'public shareholding' in the context of these rules?,"Equity shares of the company held by public, including shares underlying depository receipts if the holder of such depository receipts has the right to issue voting instruction and such depository receipts are listed on an international exchange in accordance with the Depository Receipts Scheme, 2014.",,"[' *SECURITIES CONTRACTS  (REGULATION) RULES,  1957  \nIn exercise of the powers conferred by section 30 of the Securities Contracts (Regulation) \nAct, 1956 (42 of 1956), the Central Government hereby makes the following rules, the \nsame having been previously publ ished as required by sub -section (3) of the said section, \nnamely  :— \nShort title.  \n1. These rules may be called the Securities Contracts (Regulation) Rules, 1957.  \nDefinitions.  \n2. In these rules, unless the context otherwise requires, — \n (a) “form” means a for m appended to these rules;  \n (b) “the Act” means the Securities Contracts (Regulation) Act, 1956 (42 of 1956);  \n(c) “Government company” means a company in which not less than fifty -one per cent \nof the share capital is held by the Central Government or by any S tate Government \nor Governments or partly by the Central Government and partly by one or more \nState Governments ; \n 1[(d) “public” means persons other than – \n(i) the promoter and promoter group;  \n(ii) subsidiaries and associates of the company.  \nExplanation:  For the purpose of this clause the words “promoter” and “promoter \ngroup” shall have the same meaning as assigned to them under the Securities and \nExchange Board of India (Issue of Capital and Disclosure Requirements) \nRegulations, 2009 ;] \n2[(da) ""public sect or company"" means a body corporate constituted by an Act of \nParliament or any State Legislature and includes a government company:]  \n3[(e) “public shareholding” means equity shares of the company held by public \nincluding shares underlying the depository rec eipts if the holder of such \ndepository receipts has the right to issue voting instruction and such depository \nreceipts are listed on an international exchange in accordance with the Depository \nReceipts Scheme, 2014:  \n  \n Provided that the equity shares of th e company held by the trust set up for \nimplementing employee benefit schemes under the regulations framed by the \n                                                 \n* These Ru les have been updated based on the Rules and Amendments available on the website of the \nDepartment of Economic Affairs - http://finmin.nic.in/law/index.asp   and available amendment \nnotifications.  \n1 Insert ed by the Securities Contracts (Regulation) (Amendment) Rules, 2010, w.e.f. 04.06.2010.  \n2 Inserted by the Securities Contracts (Regulation) (Second Amendment) Rules, 2010, w.e.f. 09.08.2010.  \n3 Substituted by  the Securities Contracts (Regulation) (Amendment ) Rules, 2015, w.e.f. 25.02.2015. Prior \nto substitution, clause (e) read as under -  \n“public shareholding” means equity shares of the company held by public and shall exclude shares which \nare held by custodian against depository receipts issued overseas.  Securities and Exchange Board of India shall be excluded from public \nshareholding ] \n \nApplication for recognition.  \n3. An application under sectio n 3 of the Act for recognition of a stock exchange shall be \nmade to the  4[Securities and Exchange Board of India] in Form A.  \n \nFees for application.  \n4. (1) There shall be paid in respect of every application under rule 3 a fee of rupees five \nhundred.  \n(2) Th e amount of the fee shall be deposited in the nearest Government treasury or the \nnearest branch of the State Bank of India:  \nProvided that at Bombay, Calcutta, Madras, Delhi and Kanpur, the amount shall be \ndeposited in the Reserve Bank of India.  \n(3) The amo unt of the fee so deposited shall be credited to the receipt head “XLVI — \nMiscellaneous —Other fees, fines and forfeitures”.  \n \nDocuments to be filed along with the application and particulars it should contain.   \n5. Every application shall be accompanied by fo ur copies of the rules (including the \nmemorandum and articles of association where the applicant stock exchange is an \nincorporated body) and bye -laws of the stock exchange applying for recognition as \nspecified in section 3 of the Act and the receipt grante d by the Government treasury, or as \nthe case may be, the State Bank of India or the Reserve Bank of India, in respect of the \namount of the fee deposited and shall contain clear particulars as to the matters specified \nin the Annexure to Form A.  \n \n5[Power to make inquiries and call for information.  \n5A. Before granting recognition to a stock exchange under section 4 of the Act, the \n6[Securities and Exchange Board of India] may make such inquiries and require such \nfurther information to be furnished, as it deems  necessary, relating to the information \nfurnished by the stock exchange in the Annexure to its application in Form A. ] \n \nForm of recognition.  \n6. The recognition granted to a stock exchange shall be in Form B and be subject to the \nfollowing conditions, namel y :— \n (a) that the recognition unless granted on a permanent basis, shall be for such period \nnot less than one year as may be specified in the recognition;  \n                                                 \n4 Substituted for “Central Government” by the Securities Contracts (Regulation) (Amendment) Rules, \n1996, w.e.f. 23.12.1996.  \n5 Inserted by GSR 1096 dated 14.07.1967, w.e.f. 22.07.1967  \n6 Substituted for “Central Government” by the Securities Contracts (Regulat ion)(Amendment )Rules, 1996, \nw.e.f. 23.12.1996.   (b) that the stock exchange shall comply with such conditions as are or may be \nprescribed or impose d under the provisions of the Act and these rules from time to \ntime.  \n \nRenewal of recognition.  \n7. (1) Three months before the expiry of the period of recognition, a recognised stock \nexchange desirous of renewal of such recognition may make an application to  the \n7[Securities and Exchange Board of India] in Form A.  \n(2) The provisions of rule 3, rule 4, rule 5, rule 5A and rule 6 shall apply in relation to \nrenewal of recognition as they apply in relation to grant of recognition except that the fee \npayable in re spect of an application for renewal of recognition shall be rupees two \nhundred.  \n \nQualifications for membership of a recognised stock exchange.  \n8. The rules relating to admission of members of a stock exchange seeking recognition \nshall inter alia  provide th at : \n (1) No person shall be eligible to be elected as a member if — \n (a) he is less than twenty -one years of age;  \n (b) he is not a citizen of India; provided that the governing body may in suitable \ncases relax this condition with the prior approval of the 9[Securities and \nExchange Board of India];  \n (c) he has been adjudged bankrupt or a receiving order in bankruptcy has been \nmade against him or he has been proved to be insolvent even though he has \nobtained his final discharge;  \n (d) he has compounded with hi s creditors unless he has paid sixteen annas in the \nrupee;  \n (e) he has been convicted of an offence involving fraud or dishonesty;  \n (f) he is engaged as principal or employee in any business other than that of \nsecurities  8[or commodity derivatives] except  as a broker or agent not \ninvolving any personal financial liability unless he undertakes on admission \nto sever his connection with such business :  \n  9[***]  \n  10[Provided that nothing herein shall be applicable to any corporations, \nbodies corporate, compani es or institutions referred to in clauses (a) to (n) of \nsub-rule (8). ] \n                                                 \n7 Substituted for “Central Government” by the Securities Contracts (Regulation) (Amendment) Rules, \nw.e.f. 23.12.1996.  \n8 Inserted by the Securities Contracts (Regulation) (Amendment) Rules, 2003, w.e.f. 28.08. 2003.  \n9 Omitted by the Securities Contracts (Regulation) (Second Amendment) Rules, 2017, w.e.f. 27.06.2017. \nPrior to omission it read as under:  \n“[Provided that no member may conduct business in commodity derivatives, except by setting up a separate \ncompany  which shall comply with the regulatory requirements, such as, networth, capital adequacy, \nmargins and exposure norms as may be specified by the Forward Market Commission, from time to time:”  ']"
12,What is the procedure for suspension or withdrawal of admission to dealings in units or other instruments by a recognized stock exchange?,"A recognized stock exchange may suspend or withdraw admission to dealings in units or other instruments for a breach of or non-compliance with any of the conditions of admission to dealings or for any other reason, after affording the company a reasonable opportunity to show cause against the proposed action.",,"[' (q) to grant to unit/any other instrument holders of the scheme the right of renunciation \nin all cases of issue of rights, privileges and benefits and to allow them reasonable \ntime, not being less than f our weeks, within which to record, exercise, or renounce \nsuch rights, privileges and benefits, and to issue, where necessary, coupons or \nfractional certificates or provide for the payment of the equivalent of the value of \nthe fractional right in cash unles s the company in general meeting or the stock \nexchange agrees otherwise;  \n (r) to promptly notify the stock exchange — \n (i) of any action which will result in the redemption, cancellation or retirement \nin whole or in part of any unit/other instrument listed on the exchange;  \n (ii) of the intention to make a drawing of such unit/other instrument intimating at \nthe same time the date of the drawing and the period of the closing of the \ntransfer books (or the date of the striking off the balance) for the drawing;  \n (iii) of the amount of units/other instruments outstanding after any drawing has \nbeen made;  \n (s) to intimate the stock exchange any other information necessary to enable the \nunit/any other instrument holders to appraise the position of the scheme and to \navoid the establishment of a false market in the units/any other instruments of the \ncompany;  \n (t) that in the event of the application for listing being granted, such listing shall be \nsubject to the rules and bye -laws of the exchange in force from time to ti me and \nthat the company will comply within a reasonable time, with such further listing \nrequirements as may be promulgated by the exchange as a general condition for \nnew listings.  \n(4) A fresh application for listing will be necessary in respect of all new schemes desired \nto be dealt in :  \nProvided that, where such new units/other instruments are identical in all respects with \nthose already listed, admission to dealing will be granted on the company intimating to \nthe stock exchange particulars of such new sch emes.  \nExplanation .—Units/any other instruments are identical in all respects only if — \n (a) they are issued under the same scheme;  \n (b) they are of the same nominal value and the same amount per unit/other instruments \nhas been called up;  \n (c) they are entit led to returns at the same rate and for the same period, so that at the \nnext ensuing distribution, the return payable on each unit/other issue will amount to \nexactly the same sum, net and gross; and  \n (d) they carry the same rights in all other respects.  \n(5) A recognised stock exchange may suspend or withdraw admission to dealings in the \nunits/other instruments of a scheme of a company or body corporate either for a breach of \nor non -compliance with, any of the conditions of admission to dealings or for any o ther \nreason, to be recorded in writing, which in the opinion of the stock exchange justifies \nsuch action :  Provided , however, that no such action shall be taken by a stock exchange without \naffording to the company or body corporate concerned a reasonable o pportunity by a \nnotice in writing, stating the reasons, to show cause against the proposed action :  \nProvided  further that where a recognised stock exchange has withdrawn admission to \ndealings in any unit/other instrument of a collective investment scheme, or where \nsuspension of admission to dealings has continued for a period exceeding three months, \nthe company or body corporate concerned may prefer an appeal to the Securities \nAppellate Tribunal constituted under section 15K of the Securities and Exchange B oard \nof India Act, 1992 (15 of 1992), and the procedure laid down under the Securities \nContracts (Regulation) (Appeal to Securities Appellate Tribunal) Rules, 2000 shall apply \nto such appeal. The Securities Appellate Tribunal may, after giving the stock ex change an \nopportunity of being heard, vary or set aside the decision of the stock exchange and \nthereupon the orders of the Securities Appellate Tribunal shall be carried out by the stock \nexchange.  \n(6) A recognised stock exchange may, either at its own disc retion or shall in accordance \nwith the orders of the Securities Appellate Tribunal under sub -rule (5) restore or readmit \nto dealings any units/other instruments suspended or withdrawn from the list.  \n(7) All the requirements with respect to listing prescrib ed by these rules, shall, so far as \nthey may be, also apply to a body corporate constituted by an Act of Parliament or any \nState Legislature :  \nProvided that a recognised stock exchange may relax the requirement of offer to the \npublic for subscription of at  least twenty -five per cent of the units or any other instrument \nof a collective investment scheme issued in respect of a body corporate referred to in this \nsub-rule with the previous approval of the Securities and Exchange Board of India and \nalso subject to such instructions as the Securities and Exchange Board of India may issue \nin this behalf from time to time.  \n(8) The Securities and Exchange Board of India may, at its own discretion or on the \nrecommendation of a recognised stock exchange, waive or relax  the strict enforcement of \nany or all of the requirements with respect of listing prescribed by these rules.]  \n \n59[Delisting of securities.  \n21. A recognized stock exchange may, without prejudice to any other action that may be \ntaken under the Act or under an y other law for the time being in force, delist any \nsecurities listed thereon on any of the following grounds in accordance with the \nregulations made by the Securities and Exchange Board of India, namely: — \n (a) the company has incurred losses during the pr eceding three consecutive years and \nit has negative networth;  \n (b) trading in the securities of the company has remained suspended for a period of \nmore than six months;  \n (c) the securities of the company have remained infrequently traded during the \nprecedi ng three years;  \n                                                 \n59 Inserted by the Securities Contracts (Regulation) (Amendment) Rules, 2008, w.e.f. 10.06.2009   (d) the company or any of its promoters or any of its director has been convicted for \nfailure to comply with any of the provisions of the Act or the Securities and \nExchange Board of India Act, 1992 or the Depositories Act, 1996 (22 of 1996 ) or \nrules, regulations, agreements made thereunder, as the case may be and awarded a \npenalty of not less than rupees one crore or imprisonment of not less than three \nyears;  \n (e) the addresses of the company or any of its promoter or any of its directors, are not \nknown or false addresses have been furnished or the company has changed its \nregistered office in contravention of the provisions of the Companies Act, 1956 (1 \nof 1956); or  \n (f) shareholding of the company held by the public has come below the minim um \nlevel applicable to the company as per the listing agreement under the Act and the \ncompany has failed to raise public holding to the required level within the time \nspecified by the recognized stock exchange :  \nProvided  that no securities shall be deliste d unless the company concerned has been \ngiven a reasonable opportunity of being heard.  \n(2) If the securities is delisted under clause (1),  \n (a) the company, promoter and director of the company shall be jointly and severally \nliable to purchase the outstand ing securities from those holders who wish to sell \nthem at a fair price determined in accordance with regulations made by Securities \nand Exchange Board of India, under the Act; and  \n (b) the said securities shall be delisted from all recognized stock exchan ges. \n(3) A recognized stock exchange may, on the request of the company, delist any \nsecurities listed thereon in accordance with the regulations made under the Act by \nSecurities and Exchange Board of India, subject to the following conditions, namely : — \n (a) the securities of the company have been listed for a minimum period of three years \non the recognized stock exchange;  \n (b) the delisting of such securities has been approved by the two -third of public \nshareholders; and  \n (c) the company, promoter and/or t he director of the company purchase the \noutstanding securities from those holders who wish to sell them at a price \ndetermined in accordance with regulations made by Securities and Exchange Board \nof India under the Act:  \nProvided  that the condition at (c) ma y be dispensed with by Securities and Exchange \nBoard of India if the securities remain listed at least on the National Stock Exchange of \nIndia Limited or the Bombay Stock Exchange Limited.]  ']"
13,"What is the time period within which a listed company must bring its public shareholding to twenty-five per cent if it falls below that level as a result of the implementation of a resolution plan approved under the Insolvency and Bankruptcy Code, 2016?",Within a maximum period of three years from the date of such fall.,,"['(Regulation) (Second Amendment) Rules, 2018, shall increase its public shareholding to \nat least twenty -five per cent, within a period of 49[three years ] from  the date of such \ncommencement, in the manner specified by the Securiti es and Exchange Board of India.]  \nExplanation: For the purposes of this sub -rule, a company whose securities has been \nlisted pursuant to an offer and allotment made to public in terms of 50[***]  clause (b) of \nsub-rule (2) of rule 19, shall maintain minimum t wenty five per cent, public shareholding \nfrom the date on which the public shareholding in the company reaches the level of \ntwenty five percent in terms of said sub -clause.]  \n(2) Where the public shareholding in a listed company falls below twenty five per cent. at \nany time, such company shall bring the public shareholding to twenty five per cent. \nwithin a maximum period of twelve months from the date of such fall in the manner \nspecified by the Securities and Exchange Board of India.]  \n51[Provided that every l isted public sector company whose public shareholding falls \nbelow twenty five per -cent. at any time after the commencement of the Securities \nContracts (Regulation) (Second Amendment) Rules, 2018, shall increase its public \nshareholding to at least twenty fi ve per -cent, within a period of two years from such fall, \nin the manner specified by the Securities and Exchange Board of India .] \n (3) 52[***]  \n53[(4) Where the public shareholding in a listed company falls below twenty -five per cent. \nin consequence to the Se curities Contracts (Regulation) (Amendment) Rules, 2015, such \ncompany shall increase its public shareholding to at least twenty -five per cent. in the \nmanner specified by the Securities and Exchange Board of India within a period of three \nyears, as the case  may be, from the date of notification of:  \n(a) the Depository Receipts Scheme, 2014 in cases where the public shareholding \nfalls below twenty five per cent. as a result of such scheme;  \n(b) the Securities and Exchange Board of India (Share Based Employee Benefits) \nRegulations, 2014 in cases where the public shareholding falls below twenty -five per \ncent., as a result of such regulations.]  \n                                                                                                                                                 \nof at least five per cent per annum beginning from the date of such commencement, in the manner specified \nby the Securities and Exchange Board of India:   \nProvided further that the company may increase its public shareholdin g by less than five per cent in a  year \nif such increase brings its public shareholding to the level of twenty five per cent in that year.”  \n48 Substituted vide  Securities Contract (Regulation)(Second Amendment) Rules, 2018, w.e.f. 03.08.2018, \nPrior to subst itution, proviso, read as under:  \n“Provided that any listed company which has public shareholding below twenty five per cent, on the \ncommencement of the Securities Contracts (Regulation) (Amendment) Rules, 2014, shall increase its \npublic shareholding to at least twenty five per cent, within a period of 48[four] years from the date of such \ncommencement, in the manner specified by the Securities and Exchange Board of India "".” \n49 Substituted for “two years” by the Securities Contracts (Regulation) (Second Amendme nt) Rules, 2020, \nw.e.f. 31.07.2020.  \n50 Words ""sub -clause (ii) of"" omitted by the Securities Contracts (Regulation) Third Amendment Rules, \n2014, w.e.f.  19-11-2014.  \n51 Inserted vide Securities Contract (Regulation) (Second Amendment) Rules, 2018 w.e.f. 03.08. 2018.  \n52 Sub-rule (3) omitted by the Securities Contracts (Regulation) (Second Amendment) Rules, 2014, \nw.e.f.  22-8-2014. Prior to its omission, said sub -rule, as inserted by the Securities Contracts (Regulation) \n(Second Amendment) Rules, 2010, w.e.f. 9 -8-2010, read as under :  \n""(3) Notwithstanding anything contained in this rule, every listed public sector company shall maintain \npublic shareholding of at least ten per cent :""  \n53 Inserted by the Securities Contracts (Regulation) (Amendment) Rules, 2015, w.e.f. 25.02.2015.  54[(5) Where the public shareholding in a listed company falls below twenty -five per cent, \nas a result of implementation of the resolution plan approved under section 31 of the \nInsolvency and Bankruptcy Code, 2016 (31 of 2016), such company shall bring the \npublic shareholding to twenty -five per cent within a maximum period of three years from \nthe date of such fall, in the ma nner specified by the Securities and Exchange Board of \nIndia:  \nProvided that, if the public shareholding falls below ten per cent, the same shall be \nincreased to at least ten per cent, within a maximum period of 55[twelve] months from the \ndate of such fall, in the manner specified by the Securities and Exchange Board of India.]  \n56[Provided further that, every listed company shall maintain public shareho lding of at \nleast five per cent as a result of implementation of the resolution plan approved under \nsection 3 1 of the Insolvency and  Bankruptcy Code, 2016. ] \n57[(6) Notwithstanding anything contained in sub -rules (1) to (5), the Central Government \nmay, in the public interest, exempt any listed public sector company from any or all of \nthe provisions of this rule. ] \n \n58[Requirements with respect to the listing of units or any other instrument of a \nCollective Investment Scheme on a recognised stock exchange.  \n20. (1) A Collective Investment Management Company (CIMC) which i s desirous of \ngetting its any collective investment scheme listed on a recognised stock exchange, shall \napply for the purpose to the stock exchange and forward along with its application the \nfollowing documents and particulars :  \n (a) Certificate of incorpo ration, memorandum and articles of association of the \ncompany and the copy of the trust deed of the scheme intended to be listed.  \n (b) Copies of all prospectuses or statements in lieu of prospectuses issued by the \ncompany at any time.  \n (c) Copies of offers  for sale and circulars or advertisements offering any unit or other \ninstrument for subscription or sale during the last five years, or in the case of a new \ncompany, such shorter period during which the company has been in existence.  \n (d) Copies of balance  sheets and audited accounts for the last five years, or in the case \nof a new company, for such completed financial year for which accounts have been \nmade up.  \n (e) A statement showing, — \n (i) returns and cash bonuses, if any, paid during the last ten years (or such \nshorter period as the company has been in existence whether as a private or \npublic company);  \n (ii) returns or interest in arrears, if any.  \n                                                 \n54 Inserted by the Securities Contract (Regulation) (Amendment) Rules, 2018, w.e.f. 24.27.2018 . \n55 Substituted for “eighteen” by the Securities Contracts (Regulation) (Amendment) Rules, 2021, w.e.f. \n18.06.2021.  \n56 Inserted by the Securities Contr acts (Regulation) (Amendment) Rules, 2021, w.e.f. 18.06.2021.  \n57 Inserted by the Securities Contracts (Regulation) ( Second Amendment) Rules, 2021, w.e.f. 30.07 .2021 . \n58  Inserted by the Securities Contracts (Regulation) (Amendment) Rules, 2000, w.e.f. 08.08.2000   (f) Certified copies of agreements or other documents relating to arrangements \npertaining to each scheme of  the company with or between, — \n (i) vendors and/or promoters;  \n (ii) underwriters and sub -underwriters;  \n (iii) brokers and sub -brokers.  \n (g) Certified copies of agreements pertaining to each scheme of a company with — \n (i) selling agents and other service pr oviders;  \n (ii) managing directors and technical directors;  \n (iii) general manager, sales manager, manager or secretary.  \n (h) Certified copies of every letter, report, balance sheet, valuation contract, court \norder or other document, part of which is reprod uced or referred to in any \nprospectus, offer for sale, circular or advertisement offering units or any other \ninstruments of the scheme for subscription or sale, during the last five years.  \n (i) A statement containing particulars of the dates of, and partie s to all material \ncontracts, agreements (including agreements for technical advice and \ncollaboration), concessions and similar other documents (except those entered into \nin the ordinary course of business carried on or intended to be carried on by the \ncomp any) together with a brief description of the terms, subject -matter and general \nnature of the documents pertaining to such scheme.  \n (j) A brief history of the Company since its incorporation giving details of its \nactivities including any re -organisation, r econstruction or amalgamation, changes \nin its capital structure (authorised, issued and subscribed) and debenture \nborrowings, if any, and the performance of other collective investment schemes of \nthe company.  \n (k) Particulars of units of the scheme and/or shares, debentures of the company issued \n(i) for consideration other than cash, whether in whole or part, ( ii) at a premium or \ndiscount, or ( iii) in pursuance of an option.  \n (l) A statement containing particulars of any commission, brokerage, discount or o ther \nspecial terms granted to any person pertaining to such scheme.  \n (m) Certified copies of — \n (i) certificate of registration granted by the Securities and Exchange Board of \nIndia;  \n (ii) acknowledgement card or the receipt of filing offer document with th e \nSecurities and Exchange Board of India;  \n (iii) agreements, if any, with any public financial institution as specified in \nsection 4A of the Companies Act, 1956 (1 of 1956).  \n (n) A list of the highest ten holders of units of each scheme of the company as o n the \ndate of application along with particulars as to the number of units held by and the \naddress of each such holder.  \n (o) Particulars of units of the scheme for which permission to deal is applied for :  \nProvided that a recognised stock exchange may eith er generally by its bye -laws or in any \nparticular case call for such further particulars or documents as it deems proper.  ']"
14,What is the provision for a listed company that wants to increase its public shareholding by less than five per cent in a year?,The company may increase its public shareholding by less than five per cent in a year if such increase brings its public shareholding to the level of twenty-five per cent in that year.,,"['(Regulation) (Second Amendment) Rules, 2018, shall increase its public shareholding to \nat least twenty -five per cent, within a period of 49[three years ] from  the date of such \ncommencement, in the manner specified by the Securiti es and Exchange Board of India.]  \nExplanation: For the purposes of this sub -rule, a company whose securities has been \nlisted pursuant to an offer and allotment made to public in terms of 50[***]  clause (b) of \nsub-rule (2) of rule 19, shall maintain minimum t wenty five per cent, public shareholding \nfrom the date on which the public shareholding in the company reaches the level of \ntwenty five percent in terms of said sub -clause.]  \n(2) Where the public shareholding in a listed company falls below twenty five per cent. at \nany time, such company shall bring the public shareholding to twenty five per cent. \nwithin a maximum period of twelve months from the date of such fall in the manner \nspecified by the Securities and Exchange Board of India.]  \n51[Provided that every l isted public sector company whose public shareholding falls \nbelow twenty five per -cent. at any time after the commencement of the Securities \nContracts (Regulation) (Second Amendment) Rules, 2018, shall increase its public \nshareholding to at least twenty fi ve per -cent, within a period of two years from such fall, \nin the manner specified by the Securities and Exchange Board of India .] \n (3) 52[***]  \n53[(4) Where the public shareholding in a listed company falls below twenty -five per cent. \nin consequence to the Se curities Contracts (Regulation) (Amendment) Rules, 2015, such \ncompany shall increase its public shareholding to at least twenty -five per cent. in the \nmanner specified by the Securities and Exchange Board of India within a period of three \nyears, as the case  may be, from the date of notification of:  \n(a) the Depository Receipts Scheme, 2014 in cases where the public shareholding \nfalls below twenty five per cent. as a result of such scheme;  \n(b) the Securities and Exchange Board of India (Share Based Employee Benefits) \nRegulations, 2014 in cases where the public shareholding falls below twenty -five per \ncent., as a result of such regulations.]  \n                                                                                                                                                 \nof at least five per cent per annum beginning from the date of such commencement, in the manner specified \nby the Securities and Exchange Board of India:   \nProvided further that the company may increase its public shareholdin g by less than five per cent in a  year \nif such increase brings its public shareholding to the level of twenty five per cent in that year.”  \n48 Substituted vide  Securities Contract (Regulation)(Second Amendment) Rules, 2018, w.e.f. 03.08.2018, \nPrior to subst itution, proviso, read as under:  \n“Provided that any listed company which has public shareholding below twenty five per cent, on the \ncommencement of the Securities Contracts (Regulation) (Amendment) Rules, 2014, shall increase its \npublic shareholding to at least twenty five per cent, within a period of 48[four] years from the date of such \ncommencement, in the manner specified by the Securities and Exchange Board of India "".” \n49 Substituted for “two years” by the Securities Contracts (Regulation) (Second Amendme nt) Rules, 2020, \nw.e.f. 31.07.2020.  \n50 Words ""sub -clause (ii) of"" omitted by the Securities Contracts (Regulation) Third Amendment Rules, \n2014, w.e.f.  19-11-2014.  \n51 Inserted vide Securities Contract (Regulation) (Second Amendment) Rules, 2018 w.e.f. 03.08. 2018.  \n52 Sub-rule (3) omitted by the Securities Contracts (Regulation) (Second Amendment) Rules, 2014, \nw.e.f.  22-8-2014. Prior to its omission, said sub -rule, as inserted by the Securities Contracts (Regulation) \n(Second Amendment) Rules, 2010, w.e.f. 9 -8-2010, read as under :  \n""(3) Notwithstanding anything contained in this rule, every listed public sector company shall maintain \npublic shareholding of at least ten per cent :""  \n53 Inserted by the Securities Contracts (Regulation) (Amendment) Rules, 2015, w.e.f. 25.02.2015.  54[(5) Where the public shareholding in a listed company falls below twenty -five per cent, \nas a result of implementation of the resolution plan approved under section 31 of the \nInsolvency and Bankruptcy Code, 2016 (31 of 2016), such company shall bring the \npublic shareholding to twenty -five per cent within a maximum period of three years from \nthe date of such fall, in the ma nner specified by the Securities and Exchange Board of \nIndia:  \nProvided that, if the public shareholding falls below ten per cent, the same shall be \nincreased to at least ten per cent, within a maximum period of 55[twelve] months from the \ndate of such fall, in the manner specified by the Securities and Exchange Board of India.]  \n56[Provided further that, every listed company shall maintain public shareho lding of at \nleast five per cent as a result of implementation of the resolution plan approved under \nsection 3 1 of the Insolvency and  Bankruptcy Code, 2016. ] \n57[(6) Notwithstanding anything contained in sub -rules (1) to (5), the Central Government \nmay, in the public interest, exempt any listed public sector company from any or all of \nthe provisions of this rule. ] \n \n58[Requirements with respect to the listing of units or any other instrument of a \nCollective Investment Scheme on a recognised stock exchange.  \n20. (1) A Collective Investment Management Company (CIMC) which i s desirous of \ngetting its any collective investment scheme listed on a recognised stock exchange, shall \napply for the purpose to the stock exchange and forward along with its application the \nfollowing documents and particulars :  \n (a) Certificate of incorpo ration, memorandum and articles of association of the \ncompany and the copy of the trust deed of the scheme intended to be listed.  \n (b) Copies of all prospectuses or statements in lieu of prospectuses issued by the \ncompany at any time.  \n (c) Copies of offers  for sale and circulars or advertisements offering any unit or other \ninstrument for subscription or sale during the last five years, or in the case of a new \ncompany, such shorter period during which the company has been in existence.  \n (d) Copies of balance  sheets and audited accounts for the last five years, or in the case \nof a new company, for such completed financial year for which accounts have been \nmade up.  \n (e) A statement showing, — \n (i) returns and cash bonuses, if any, paid during the last ten years (or such \nshorter period as the company has been in existence whether as a private or \npublic company);  \n (ii) returns or interest in arrears, if any.  \n                                                 \n54 Inserted by the Securities Contract (Regulation) (Amendment) Rules, 2018, w.e.f. 24.27.2018 . \n55 Substituted for “eighteen” by the Securities Contracts (Regulation) (Amendment) Rules, 2021, w.e.f. \n18.06.2021.  \n56 Inserted by the Securities Contr acts (Regulation) (Amendment) Rules, 2021, w.e.f. 18.06.2021.  \n57 Inserted by the Securities Contracts (Regulation) ( Second Amendment) Rules, 2021, w.e.f. 30.07 .2021 . \n58  Inserted by the Securities Contracts (Regulation) (Amendment) Rules, 2000, w.e.f. 08.08.2000   (f) Certified copies of agreements or other documents relating to arrangements \npertaining to each scheme of  the company with or between, — \n (i) vendors and/or promoters;  \n (ii) underwriters and sub -underwriters;  \n (iii) brokers and sub -brokers.  \n (g) Certified copies of agreements pertaining to each scheme of a company with — \n (i) selling agents and other service pr oviders;  \n (ii) managing directors and technical directors;  \n (iii) general manager, sales manager, manager or secretary.  \n (h) Certified copies of every letter, report, balance sheet, valuation contract, court \norder or other document, part of which is reprod uced or referred to in any \nprospectus, offer for sale, circular or advertisement offering units or any other \ninstruments of the scheme for subscription or sale, during the last five years.  \n (i) A statement containing particulars of the dates of, and partie s to all material \ncontracts, agreements (including agreements for technical advice and \ncollaboration), concessions and similar other documents (except those entered into \nin the ordinary course of business carried on or intended to be carried on by the \ncomp any) together with a brief description of the terms, subject -matter and general \nnature of the documents pertaining to such scheme.  \n (j) A brief history of the Company since its incorporation giving details of its \nactivities including any re -organisation, r econstruction or amalgamation, changes \nin its capital structure (authorised, issued and subscribed) and debenture \nborrowings, if any, and the performance of other collective investment schemes of \nthe company.  \n (k) Particulars of units of the scheme and/or shares, debentures of the company issued \n(i) for consideration other than cash, whether in whole or part, ( ii) at a premium or \ndiscount, or ( iii) in pursuance of an option.  \n (l) A statement containing particulars of any commission, brokerage, discount or o ther \nspecial terms granted to any person pertaining to such scheme.  \n (m) Certified copies of — \n (i) certificate of registration granted by the Securities and Exchange Board of \nIndia;  \n (ii) acknowledgement card or the receipt of filing offer document with th e \nSecurities and Exchange Board of India;  \n (iii) agreements, if any, with any public financial institution as specified in \nsection 4A of the Companies Act, 1956 (1 of 1956).  \n (n) A list of the highest ten holders of units of each scheme of the company as o n the \ndate of application along with particulars as to the number of units held by and the \naddress of each such holder.  \n (o) Particulars of units of the scheme for which permission to deal is applied for :  \nProvided that a recognised stock exchange may eith er generally by its bye -laws or in any \nparticular case call for such further particulars or documents as it deems proper.  ']"
15,What is the manner of inquiry in relation to the affairs of the governing body of a recognised stock exchange or the affairs of any member of the stock exchange in relation to the stock exchange?,"The person or persons appointed by the Securities and Exchange Board of India to make an inquiry under clause (b) of sub-section (3) of section 6 of the Act shall hand over a statement of issues to be inquired into to the governing body or the member concerned, who will be given a reasonable opportunity to state their or his side of the case.",,"['Manner of inquiry in relation to the affairs of the governing body of a recognised \nstock exchange or the affairs of any  member of the stock exchange in relation to the \nstock exchange.  \n16. (1)(a) The person or persons appointed by the  26[Securities and Exchange Board of \nIndia] to make an inquiry under clause ( b) of sub -section (3) of section 6 of the Act shall \nhereafter in t his rule be referred to as the ‘inquiring authority’;  \n(b) where the inquiring authority consists of two or more persons, one of them shall be \nappointed as the chairman or senior member thereof;  \n(c) the inquiring authority shall hand over a statement of iss ues to be inquired into to the \ngoverning body or the member concerned, as the case may be, who will be given a \nreasonable opportunity to state their or his side of the case;  \n(d) if any witness is called for examination, an opportunity shall be provided to the \ngoverning body or the member whose affairs are being inquired into, as the case may be, \nto cross -examine such witness;  \n(e) where the inquiring authority consists of more than one person, the views of the \nmajority shall be deemed to represent the findin gs of such authority and, in the event of \nan equality of votes, the chairman or senior member shall have a casting vote;  \n(f) the inquiring authority shall submit its report in writing to the  22[Securities and \nExchange Board of India] within the period spec ified in the order of appointment;  \n(g) temporary absence from any hearing or hearings of any member of the inquiring \nauthority shall not vitiate its proceedings.  \n(2) Where the 22[Securities and Exchange Board of India] has directed the governing \nbody of a stock exchange to make an inquiry under clause ( b) of sub -section (3) of \nsection 6 of the Act, the governing body concerned shall appoint one or more members \nthereof to make the inquiry and the provisions of sub -rule (1) shall apply mutatis \nmutandis  to suc h inquiry.  \n \nSubmission of annual report.  \n17. (1) Every recognised stock exchange shall before the 31st day of January in each year \nor within such extended time as the 27[Securities and Exchange Board of India] may, \nfrom time to time, allow, furnish the 23[Securities and Exchange Board of India] annually \nwith a report about its activities during the preceding calendar year, which shall inter alia  \ncontain detailed information about the following matters :  \n (a) changes in rules and bye -laws, if any;  \n (b) change s in the composition of the governing body;  \n (c) any new sub -committees set up and changes in the composition of existing ones;  \n (d) admissions, re -admissions, deaths or resignations of members;  \n (e) disciplinary action against members;  \n                                                 \n26 Substituted for “Central Government” by the Securities Contracts (Regulation) (Amendment) Rules, \n1996, w.e.f. 23.12.1996  \n27 Ibid.  (f) arbitration of  disputes (nature and number) between members and non -members;  \n (g) defaults;  \n (h) action taken to combat any emergency in trade;  \n (i) securities listed and de -listed; and  \n (j) securities brought on or removed from the forward list.  \n(2) Every recognised st ock exchange shall within one month of the date of the holding of \nits annual general meeting, furnish the 28[Securities and Exchange Board of India] with a \ncopy of its audited balance -sheet and profit and loss account for its preceding financial \nyear.  \n \nSubm ission of periodical returns.  \n17A.  Every recognised stock exchange shall furnish the  24[Securities and Exchange \nBoard of India] periodical returns relating to — \n (i) the official rates for the securities enlisted thereon;  \n (ii) the number of shares delivere d through the clearing house;  \n (iii) the making -up prices;  \n (iv) the clearing house programmes;  \n (v) the number of securities listed and de -listed during the previous three months;  \n (vi) the number of securities brought on or removed from the forward list during the \nprevious three months; and  \n (vii) any other matter as may be specified by the 24[Securities and Exchange Board of \nIndia].  \n \nManner of publication of bye -laws for criticism.  \n18. The bye -laws to be made, amended or revised under the Act shall be pu blished for \ncriticism in accordance with the provisions of section 23 of the General Clauses Act, \n1897 both in the Gazette of India and Official Gazette of the State in which the principal \noffice of the recognised stock exchange is situate.  \n \nRequirements w ith respect to the listing of securities on a recognised stock \nexchange.  \n19. (1) A public company as defined under the Companies Act, 1956, desirous of getting \nits securities listed on a recognised stock exchange, shall apply for the purpose to the \nstock e xchange and forward along with its application the following documents and \nparticulars  : \n (a) Memorandum and articles of association and, in the case of a debenture issue, a \ncopy of the trust deed.  \n (b) Copies of all prospectuses or statements in lieu of p rospectuses issued by the \ncompany at any time.  \n                                                 \n28 Ibid.   (c) Copies of offers for sale and circulars or advertisements offering any securities for \nsubscription or sale during the last five years.  \n (d) Copies of balance -sheets and audited accounts for the last five years, or in the case \nof new companies, for such shorter period for which accounts have been made up.  \n (e) A statement showing — \n (i) dividends and cash bonuses, if any, paid during the last ten years (or such \nshorter period as the company has been in exist ence, whether as a private or \npublic company),  \n (ii) dividends or interest in arrears, if any.  \n (f) Certified copies of agreements or other documents relating to arrangements with or \nbetween : — \n (i) vendors and/or promoters,  \n (ii) underwriters and sub -unde rwriters,  \n (iii) brokers and sub -brokers.  \n (g) Certified copies of agreements with — \n (i) managing agents and secretaries and treasurers,  \n (ii) selling agents,  \n (iii) managing directors and technical directors,  \n (iv) general manager, sales manager, manager or secretary.  \n (h) Certified copy of every letter, report, balance -sheet, valuation contract, court order \nor other document, part of which is reproduced or referred to in any prospectus, \noffer for sale, circular or advertisement offering securities for sub scription or sale, \nduring the last five years.  \n (i) A statement containing particulars of the dates of, and parties to all material \ncontracts, agreements (including agreements for technical advice and \ncollaboration), concessions and similar other documents  (except those entered into \nin the ordinary course of business carried on or intended to be carried on by the \ncompany) together with a brief description of the terms, subject -matter and general \nnature of the documents.  \n (j) A brief history of the company s ince its incorporation giving details of its activities \nincluding any reorganisation, reconstruction or amalgamation, changes in its \ncapital structure, (authorised, issued and subscribed) and debenture borrowings, if \nany. \n (k) Particulars of shares and deb entures issued —(i) for consideration other than cash, \nwhether in whole or part, ( ii) at a premium or discount, or ( iii) in pursuance of an \noption.  \n (l) A statement containing particulars of any commission, brokerage, discount or other \nspecial terms includi ng an option for the issue of any kind of the securities granted \nto any person.  \n (m) Certified copies of —  29[(i) acknowledgement card or the receipt of filing offer document with the \nSecurities and Exchange Board of India;]  \n (ii) agreements, if any, with t he Industrial Finance Corporation, Industrial Credit \nand Investment Corporation and similar bodies.  \n (n) Particulars of shares forfeited.  \n (o) A list of highest ten holders of each class or kind of securities of the company as on \nthe date of application al ong with particulars as to the number of shares or \ndebentures held by and the address of each such holder.  \n (p) Particulars of shares or debentures for which permission to deal is applied for :  \n  Provided that a recognised stock exchange may either general ly by its bye -laws or \nin any particular case call for such further particulars or documents as it deems \nproper.  \n(2) Apart from complying with such other terms and conditions as may be laid down by a \nrecognised stock exchange, an applicant company shall sat isfy the stock exchange that  : \n (a) Its articles of association provide for the following among others — \n (i) that the company shall use a common form of transfer,  \n (ii) that the fully paid shares will be free from all lien, while in the case of partly \npaid shares, the company’s lien, if any, will be restricted to moneys called or \npayable at a fixed time in respect of such shares,  \n (iii) that any amount paid -up in advance of calls on any share may carry interest \nbut shall not entitle the holder of the share to participate in respect thereof, in \na dividend subsequently declared,  \n (iv) there will be no forfeiture of unclaimed dividends before the claim becomes \nbarred by law,  \n (v) that option or right to call of shares shall not be given to any person except \nwith the sanction of the company in general meeting :  \n  Provided that a recognised stock exchange may provisionally admit to \ndealings the securities of a company which undertakes to amend its articles \nof association at its next general meeting so as to fulfil  the foregoing \nrequirements and agrees to act in the meantime strictly in accordance with \nthe provisions of this clause.  \n 30[ (b) 31[The minimum offer and allotment to public in terms of an offer document \nshall be -] \n                                                 \n29  Substituted by the Securities Contracts (Regulation) (Amendment) Rules, 1996, w.e.f. 23.12. 1996. Prior \nto its substitution, sub -clause (i), read as under:  \n“(i) letters of consent of the Controller of Capital Issues.”  \n  \n30 Clause ( b) substituted by the Securities Contracts (Regulation) Third Amendment Rules, 2014, w.e.f.  19-\n11-2014.  Prior to its substitution , the said clause, as amended by the Amendment Rules, 2001, w.e.f. 1 -6-\n2001; the Securities Contracts (Amendment) Rules, 2010, w.e.f. 4 -6-2010 and the Securities Contracts \n(Regulation) (Second Amendment) Rules, 2010, w.e.f. 9 -8-2010, read as un der : \n""(b)( i) At least twenty five per cent of each class or kind of equity shares or debentures convertible into \nequity shares issued by the company was offered and allotted to public in terms of an offer document; or  ']"
16,"What is the requirement for a company whose draft offer document is pending with the Securities and Exchange Board of India on or before the commencement of the Securities Contracts (Regulation) Third Amendment Rules, 2014?",The company shall increase its public shareholding to at least twenty-five per cent within a period of three years from the date of listing of the securities.,,"['  (i)     at least twenty five per cent of  each class or kind of equity shares or debenture \nconvertible into equity shares issued by the company, if the post issue capital \nof the company calculated at offer price is less than or equal to one thousand \nsix hundred crore rupees;  \n(ii)   at least such percentage of each class or kind of equity shares or debentures \nconvertible into equity shares issued by the company equivalent to the value \nof four hundred crore rupees, if the post issue capital of the company \ncalculated at offer price is more than one t housand six hundred crore rupees \nbut less than or equal to four thousand crore rupees;  \n(iii)   at least ten per cent of each class or kind of equity shares or debentures \nconvertible into equity shares issued by the company, if the post issue capital \nof the  company calculated at offer price is above four thousand crore rupees  \n32[but less than or equal to one lakh crore rupees ]: \n                      33[(iv)  at least such percentage of each class or kind of equity shares or debentures \nconvertible into equity s hares issued by the company equivalent to the value \nof five thousand crore rupees and at least five per cent of each such class or \nkind of equity shares or debenture convertible into equity shares issued by the \ncompany, if the post issue capital of the com pany calculated at offer price is \nabove one lakh crore rupees:  \n  Provided that the company referred to in this sub -clause (iv) shall increase its \npublic shareholding to at least ten per cent within a period of two years and at \nleast twenty -five per cent. w ithin a period of five years, from the date of \nlisting of the securities, in the manner specified by the Securities and \nExchange Board of India; ] \n  Provided  that the company referred to in sub -clause (ii) or sub -clause (iii), \nshall increase its public shar eholding to at least twenty five per cent within a \nperiod of three years from the date of listing of the securities, in the manner \nspecified by the Securities and Exchange Board of India:  \n   Provided further  that this clause shall not apply to a company wh ose draft \noffer document is pending with the Securities and Exchange Board of India \non or before the commencement of the Securities Contracts (Regulation) \nThird Amendment Rules, 2014, if it satisfies the conditions prescribed in \n                                                                                                                                                 \n(ii) At least ten per cent of each cl ass or kind of equity shares or debentures convertible into equity shares \nissued by the company was ofered and allotted to public in terms of an offer document if the post issue \ncapital of the company calculated at offer price is more than four thousand cr ore rupees:  \nProvided  that the requirement of post issue capital being more than four thousand crore rupees shall not \napply to a company whose draft offer document is pending with the Securities and Exchange Board of \nIndia on or before the commencement of t he Securities Contracts (Regulation) (Amendment) Rules, 2010, \nif it satisfies the conditions prescribed in clause ( b) of sub -rule (2) of rule 19 of the Securities Contracts \n(Regulation) Rules, 1957 as existed prior to the date of such commencement :  \nProvid ed further  that the company, referred to in sub -clause ( ii), shall increase its public shareholding to \nat least twenty five per cent, within a period of three years from the date of listing of the securities, in the \nmanner specified by the Securities and E xchange Board of India.""  \n31 Inserted by the Securities Contracts (Regulation) (Amendment) Rules, 2015, w.e.f. 25.02.2015.  \n32 Inserted by the Securities Contracts (Regulation) (Amendment) Rules, 2021, w.e.f. 18.06.2021.  \n33 Inserted by the Securities Contracts (Regulation) (Amendment) Rules, 2021, w.e.f. 18.06.2021.  clause (b) of sub -rule (2) of rule 19 of the Securities Contracts (Regulation) \nRules, 1956 as existed prior to the date of such commencement. ] \n34[***]  \n35[Provided also that the applicant company  36[referred to in clause (b) ], who \nhas issued equity shares having superior voting rights t o its promoters or \nfounders and is seeking listing of its ordinary shares for offering to the public \nunder this rule and the regulations made by the Securities and Exchange \nBoard of India in this regard, shall mandatorily list its equity shares having \nsuperior voting rights at the same recognized stock exchange along with the \nordinary shares being offered to the public; ] \n \n (c) 37[***]   \n(3) A company applying for listing shall, as a condition precedent, undertake inter alia — \n (a) (i) that letters of allotment  will be issued simultaneously and that, in the event \nof its being impossible to issue letters of regret at the same time, a notice to \nthat effect will be inserted in the press so that it will appear on the morning \nafter the letters of allotment have been posted,  \n (ii) that letters of right will be issued simultaneously,  \n (iii) that letters of allotment, acceptance or rights will be serially numbered, \nprinted on good quality paper and examined and signed by a responsible \nofficer of the company and that when ever possible, they will contain the \ndistinctive numbers of the securities to which they relate,  \n (iv) that letters of allotment and renounceable letters of right will contain a \nproviso for splitting and that, when so required by the exchange, the form of \nrenunciation will be printed on the back of or attached to the letters of \nallotment and letters of right,  \n (v) that letters of allotment and letters of right will state how the next payment of \ninterest or dividend on the securities will be calculated,  \n (b) to issue, when so required, receipts for all securities deposited with it whether for \nregistration, sub -division, exchange or for other purposes;  and not to charge any \nfees for registration of transfers, for sub -division and consolidation of certificates \nand for sub -division of letters of allotment, renounceable letters of right, and split, \n                                                 \n34 Omitted, ibid . Prior to its omission, third proviso, read as under:  \n“Provided further that the company may increase its public shareholding by less than five per cent in a year \nif such increase bei ngs its public shareholding to the level of twenty five per cent in that year.”  \n35 Inserted by the Securities Contracts (Regulation) (Amendment) Rules, 2020, w.e.f. 19.03.2020.  \n36 Inserted by the Securities Contracts (Regulation) (Amendment) Rules, 2021, w. e.f. 18.06.2021.  \n37 Clause ( c) omitted by the Securities Contracts (Regulation) Third Amendment Rules, 2014, w.e.f.  19-11-\n2014.  Prior to its omission, the said clause, as inserted by the Securities Contracts (Regulation) (Second \nAmendment) Rules, 2010, w.e. f. 9-8-2010, read as under :  \n""(c) Notwithstanding anything contained in clause ( b), a public sector company, shall offer and allot at least \nten per cent of each class or kind of equity shares or debentures convertible into equity shares to public in \nterms of an offer document.""  \n consolidation, renewal and transfer receipts into denominations of the market unit \nof trading;  \n (bb) to issue, when so required, consolidation and renewal certificates in denominations \nof the market unit of trading to split certificates, letters of allotment, letters of right, \nand transfer, renewal, consolidation and split receipts into smaller units, to split call \nnotices, issue duplicates thereof and not require any di scharge on call receipts and \nto accept the discharge of members of stock exchange on split, consolidation and \nrenewal receipts as good and sufficient without insisting on the discharge of the \nregistered holders;  \n (c) when documents are lodged for sub -divis ion or consolidation or renewal through \nthe clearing house of the exchange :  \n (i) to accept the discharge of an official of the stock exchange clearing house on \nthe company’s split receipts and consolidation receipts and renewal receipts \nas good and suffic ient discharge without insisting on the discharge of the \nregistered holders, and  \n (ii) to verify when the company is unable to issue certificates or split receipt or \nconsolidation receipts or renewal receipts immediately on lodgement \nwhether the discharge of the registered holders, on the documents lodged for \nsub-division or consolidation or renewal and their signatures on the relative \ntransfers are in order;  \n (d) on production of the necessary documents by shareholders or by members of the \nexchange, to mak e on transfers an endorsement to the effect that the power of \nattorney or probate or letters of administration or death certificate or certificate of \nthe Controller of Estate Duty or similar other document has been duly exhibited to \nand registered by the c ompany;  \n (e) to issue certificates in respect of shares or debentures lodged for transfer within a \nperiod of one month of the date of lodgement of transfer and to issue balance \ncertificates within the same period where the transfer is accompanied by a larg er \ncertificate;  \n (f) to advise the stock exchange of the date of the board meeting at which the \ndeclaration or recommendation of a dividend or the issue of right or bonus share \nwill be considered;  \n (g) to recommend or declare all dividends and/or cash bonu ses at least five days before \nthe commencement of the closure of its transfer books or the record date fixed for \nthe purpose and to advise the stock exchange in writing of all dividends and/or cash \nbonuses recommended or declared immediately after a meetin g of the board of the \ncompany has been held to finalise the same;  \n (h) to notify the stock exchange of any material change in the general character or \nnature of the company’s business;  \n (i) to notify the stock exchange of any change — \n (i) in the company’s directorate by death, resignation, removal or otherwise,  \n (ii) of managing director, managing agent or secretaries and treasurers,  \n (iii) of auditors appointed to audit the books and account of the company;  ']"
17,What provisions have to be made by a stock exchange applying for recognition/renewal of recognition for periodical settlement of contracts and differences thereunder?,"The stock exchange should make provisions for periodical settlement of contracts, including delivery and payment of securities, passing of delivery orders, and determination of making-up prices.",,"['FORM A  \n(See Rules 3 and 7)  \nApplication for recognition/renewal of  recognition of a stock exchange under section \n3 of the Securities Contracts (Regulation) Act, 1956  \nTo \n......................................  \n......................................  \nSubject:—Application for recognition/renewal of recognition of a stock exch ange under \nsection 3 of the Securities Contracts (Regulation) Act, 1956.  \nSir, \nPursuant to the  60[Securities and Exchange Board of India] Notification No. \n.......................... ................. dated ................................./Certificate of rec ognition \ndated...............................We/I on behalf of .................. (name and address of stock \nexchange) being a stock exchange as defined in section 2 of the Securities Contracts \n(Regulation) Act, 1956 hereby apply for recognition/renewal of  recognition for the \npurposes of the said Act in respect of contracts in securities.  \n2. Four copies of the rules, memorandum and articles of association relating in general to \nthe constitution and management of the stock exchange and four copies of the bye -laws \nfor the regulation and control contracts in securities are enclosed.  \n3. All the necessary information required in the Annexure to this Form is enclosed. Any \nadditional information will be furnished as and when called for by the  61[Securities and \nExcha nge Board of India].  \n4. We/I on behalf of the said stock exchange hereby undertake to comply with the \nrequirements of section 4 of the said Act and such other conditions and terms as may be \ncontained in the certificate of recognition or be prescribed or im posed subsequently.  \n5. Treasury Receipt No. ......dated......for Rs............is attached.  \n Yours faithfully,  \n Signature of applicant  \nANNEXURE TO FORM ‘A’  \nPart I - General  \n 1. Name of the applicant stock exchange.  \n 2. Address.  \n 3. Date of establishment.  \n 4. Is your exchange a joint stock company (state whether public or private) registered \nunder the Indian Companies Act or an association for profit or otherwise ? If it is \norganised on some other basis, this may be stated.  \n 5. Give details of your capital s tructure and attach three copies of the audited balance \nsheets and profit and loss account of the Exchange for the preceding three years.  \n                                                 \n60 Substituted for “Central Government” by the Securities Contracts (Regulation) (Amendment) Rules, \n1996, w.e.f. 23.12.1996.  \n61 Substituted for “Central Government” by the Securities Contracts (Regulation) (Amendment) Rules, \n1996, w.e.f. 23.12.1996.  Part II - Membership  \n 6. State the number of members at the time of application. Also specify how many are \ninactive.  \n 7. State whether there is any provision, resolution or convention for limiting the \nnumber of members and whether in pursuance thereof you have fixed a ceiling on \nthe number of members that you would take.  \n 8. Do you insist on any minimum qualifications and  experience before enrolling new \nmembers  ? If so give details.  \n 9. State the different classes of members, if any, the number thereof and the privileges \nenjoyed by each class. What is the procedure followed by your exchange for the \nadmission of different c lasses of new members ?  \n 10. What are the rates of your annual subscription in respect of the different classes of \nmembers ?  \n 11. Do you collect any security deposit from your members ? If so, give details and also \nstate the manner in which such deposits a re utilised and the rate of interest allowed, \nif any.  \n 12. Do you collect any admission or entrance fees from your members or from partners \nof firms who are members ? If so, how much ?  \n 13. Do you insist on your members and partners of firms who are member s divesting \nthemselves of other activities either as principal or as employee ?  \n 14. Do your rules permit firms to become members ? If so, is it incumbent on members \nto seek the approval of the governing body before admitting new partners ? State the \ncondi tions, if any, laid down in your rules for the admission of such partners.  \n 15. If your rules do not permit of firms being enrolled as members, do you permit \nindividual members to form a partnership ? State the procedure followed for the \nrecognition of suc h partnership.  \n 16. Do you permit members to work in partnership with non -members ? If so, how far \nsuch non -members subject to the control of the stock exchange ?  \nPart III - Governing Body  \n 17. What is the present strength of your governing body ? Give det ails of the \nconstitution, powers of management, election and tenure of office of members of the \ngoverning body, and the manner in which its business is transacted.  \n 18. Are any trade or commercial interest represented on your governing body ? If so, \ngive d etails of interests represented.  \n 19. Do you associate shareholders of investors associations with the management of \nyour exchange ? If so, state the manner in which it is done.  \n 20. Are there any Government representatives on your governing body ? If so, furnish \ntheir names.  \n 21. Do your rules provide for the direct election by members of any other bodies or \ncommittees, apart from the governing body ? If so, give details of their constitution, \ntenure, powers and functions.   22. Do you have any provision fo r the appointment of standing or ad hoc  sub-\ncommittees of the governing body ? If so, furnish details of the method of their \nappointment, terms of office, powers and functions.  \n 23. Give the designations, powers and duties of principal office -bearers of yo ur \nexchange. Are any of these office -bearers in the pay of the stock exchange ? If so, \ngive details as to the mode of their appointment, tenure of office and remuneration.  \nPart IV - Trading  \n 24. Do you have a trading ring ? If not, how do you carry on the business ? Give details.  \n 25. State the different kinds of contracts in use on your exchange e.g., spot, ready and \nforward. State the period of delivery and payment in each case.  \n 26. Give details of business hours for each type of contract.  \n 27. Give deta ils of the scale of brokerage and other charges, if any, prescribed by your \nexchange.  \n 28. Do you prescribe standard forms of contract for the use of your members ? Attach \nthree copies of each such contract form.  \n 29. Do you classify your members into brok ers and jobbers ? If so, specify the bye -law \nunder which this is done.  \n 30. Do you have a system of registration of remisiers and/or authorised clerks ? If so, \ngive details as to their qualifications, obligations and rights, etc.  \n 31. Do you have any regul ations regarding dealings by members on their own account \nwhether in the nature of Taravani  (day-to-day) or otherwise ?  \n 32. Do you have any provisions for regulating the volume of business done by any \nindividual member other than through a system of margi ns ? If so, give details.  \n 33. What provisions have you made for periodical settlement of contracts and \ndifferences thereunder, the delivery of, and payment for securities and the passing of \ndelivery orders  ? \n 34. Do you have a clearing house for the settl ement of contracts ? If so, give details of \nits organisation and management.  \n 35. If you have clearing house, what returns do the members of your exchange submit \nregarding the transactions cleared through such clearing house ? Does the exchange \nask for any  regular returns in respect of transactions settled outside the clearing \nhouse ? Submit three copies of forms used in this connection.  \n 36. How do you fix, alter or postpone the dates of settlement ?  \n 37. How do you determine and declare making -up prices ?  \n 38. Do you have any arrangements for making or recording of bargains ?  \n 39. Have you any arrangements for recording and publishing market rates including \nopening, closing, highest and lowest rates ?  \n 40. What provisions have you made for regulating —(a) the entering into contracts, their \nperformance and rescission, including contracts : ( i) between members, ( ii) between \na member and his constituent, and ( iii) between a member and a non -member; ( b) \nthe consequences of breach, default or insolvency on the pa rt of members whether \nacting as buyers, sellers or intermediaries ; and ( c) ‘havalas’  and other matters \nrelating to conduct of business of members in the exchange ?  ']"
18,Can a company be a member of a stock exchange?,"Yes, a company can be a member of a stock exchange if it is formed in compliance with the provisions of section 322 of the Companies Act, 1956, and a majority of its directors are shareholders of the company and also members of the stock exchange.",,"[' (g) 11[***]  \n (h) he has been at any time expelled or declared a defaulter by any other stock \nexchange;  \n (i) he has been previously refused admission to membership unless a period of \none year has elapsed since the date of such rejection.  \n (2) No person eligible for admission as a member under sub -rule (1) shall be admitted \nas a member unless : — \n (a) he has worked for not less than two years as a partner with, or an authorised \nassistant or  authorised clerk or remisier or apprentice to, a member; or  \n (b) he agrees to work for a minimum period of two years as a partner or \nrepresentative member with another member and to enter into bargains on \nthe floor of the stock exchange and not in his own  name but in the name of \nsuch other member ; or  \n (c) he succeeds to the established business of a deceased or retiring member who \nis his father, uncle, brother or any other person who is, in the opinion of the \ngoverning body, a close relative :  \n  Provided that the rules of the stock exchange may authorise the governing \nbody to waive compliance with any of the foregoing conditions if the person \nseeking admission is in respect of means, position, integrity, knowledge and \nexperience of business in securities, considered by the governing body to be \notherwise qualified for membership.  \n (3) No person who is a member at the time of application for recognition or \nsubsequently admitted as a member shall continue as such if — \n (a) he ceases to be a citizen of India :  \n  Provided that nothing herein shall affect those who are not citizens of India \nbut who were members at the time of such application or were admitted \nsubsequently under the provisions of clause ( b) of sub -rule (1) of this rule, \nsubject to their complying wi th all other requirements of this rule;  \n (b) he is adjudged bankrupt or a receiving order in bankruptcy is made against \nhim or he is proved to be insolvent;  \n (c) he is convicted of an offence involving fraud or dishonesty;  \n (d) 12[* * *]  \n (e) 13[* * *]  \n (f) he engages either as principal or employee in any business other than that of \nsecurities  14[or commodity derivatives] except as a broker or agent not \ninvolving any personal financial liability, provided that — \n                                                                                                                                                 \n10 Substituted by the Securities Contracts (Regulation) (Second A mendment) Rules, 2017, w.e.f. \n27.06.2017. Prior to substitution it read as under:  \n“Provided further that nothing herein shall be applicable to any corporations, bodies corporate, companies \nor institutions referred to in items (a) to (n)10 of the proviso to sub-rule (4).];”  \nFootnote in above amendment read as under - “Substituted for ""(a) to (k)"" by Securities Contracts \n(Regulation) (Amendment) Rules, 2014, w.e.f.16.1.2014.”  \n11 Omitted by GSR 1070(E) dated 15.11.1988  \n12 Ibid. \n13 Ibid.   (i) the governing body may, for reasons, to be recorded in writing, permit a \nmember to engage himself as principal or employee in any such \nbusiness, if the member in question ceases to carry on business on the \nstock exchange either as an individual or as a partner in a firm,  \n (ii) in the case of those members who were under the rules in force at the \ntime of such application permitted to engage in any such business and \nwere actually so engaged on the date of such application, a period of \nthree years from the date of the grant of recognition shall be allo wed for \nsevering their connection with any such business,  \n15[(iii) nothing herein shall affect members of a recognised stock exchange \nwhich are corporations, bodies corporate, companies or institutions \nreferred to in items [(a) to ( n) of sub -rule (8) ]16. \n (4) A company as defined in the Companies Act, 1956 (1 of 1956), shall be eligible to \nbe elected as a member of a stock exchange if — \n (i) such company is formed in compliance with the provisions of section 322 of \nthe said Act;  \n (ii) a majority of the direct ors of such company are shareholders of such \ncompany and also members of that stock exchange; and  \n (iii) the directors of such company, who are members of that stock exchange, \nhave ult imate liability in such company.  \n  17[***] \n                                                                                                                                                 \n14 Inserted by the Securiti es Contracts (Regulation) (Amendment) Rules, 2003, w.e.f. 28.08.2003.  \n15 Substituted, ibid. Prior to its substitution, sub -clause (iii) read as under:  \n    “(iii) nothing herein shall affect members of a recognized stock exchange permitted under the proviso to \nclause (f) of sub -rule(1) to suspend the enforcement of the aforesaid clause, for so long as such \nsuspension is effective, except that no member of such exchange shall engage in forward business of any \nkind whether in goods or commodities or otherwise a nd , if actually so engaged on the date of such \napplication , he shall sever his connection with any such business within a period of three years from the \ndate of the grant of recognition.”  \n16 Substituted for “items (a) to (n) of the proviso to sub -rule (4) ”, by the Securities Contracts (Regulation) \n(Second Amendment) Rules, 2017, w.e.f. 27.06.2017.  \nPrior to this, Substituted ""(a) to (k)"" by Securities Contracts (Regu lation) (Amendment) Rules, 2014, \nw.e.f.16.1.2014  \n17 Omitted by the Securities Contracts (Regu lation) (Amendment) Rules, 2017, w.e.f. 20.03.2017.  Prior to \nomission th e proviso read as u nder- \n“Provided that where the17[Securities and Exchange Board of India] makes a recommendation in this \nregard, the governing body of a stock exchange shall, in relax ation of the requirements of this clause, admit \nas member the following corporations 18[,bodies corporate], companies or institutions, namely  :— \n(a) the Industrial Finance Corporation, established under the Industrial Finance Corporation Act, 1948 \n(15 of 1 948);  \n(b) the Industrial Development Bank of India, established under the Industrial Development Bank Act, \n1964 (18 of 1964);  \n 18[(c) any insurance company granted registration by the Insurance Regulatory Development Authority \nunder the Insurance Act, 1938  (4 of 1938)]   \n(d)19 [* * *]   \n(e)the Unit Trust of India, established under the Unit Trust of India Act, 1963 (52 of 1963);  \n(f)the Industrial Credit and Investment Corporation of India, a company registered under the Companies \nAct, 1956 (1 of 1956);     \n (4A) A company as defined in the Companies Act, 1956 (1 of 1956), shall also be \neligible to be elected as a member of a stock exchange if — \n (i) such company is formed in compliance with the provisions of section 12 of \nthe said Act;  \n (ii) such company undertakes to comply with such financial requirements and \nnorms as may be specified by the Securities and Exchange Board of India for \nthe registration of such company under sub -section (1) of section 12 of the \nSecurities and Exchange Board of India Act, 1992 (15 of 1992);  \n (iii) 18[* * * ] \n (iv) the directors of the company are not disqualified from being members of a \nstock exchange under  19[clause (1) [except sub -clause ( b) and sub -clause ( f) \nthereof] or clause (3) [except sub -clause ( a) and sub -clause ( f) thereof]] and \nthe Directors of th e company had not held the offices of the Directors in any \ncompany which had been a member of the stock exchange and had been \ndeclared defaulter or expelled by the stock exchange; and  \n (v) not less than two directors of the company are persons who possess a \nminimum two years’ experience :  \n                                                                                                                                                 \n(g)the subsidiaries of any of the corporations or companies specified in ( a) to ( f) and any subsidiary of \nthe State Bank of India or any nationalised bank set up for providing merchant banking services, buying \nand selling securities and other similar activiti es. \n20[(h)any bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934);  \n(i)the Export Import Bank of India, established under the Export Import Bank of India Act, 1981 (28 of \n1981);  \n(j)the National Bank for Agriculture and  Rural Development, established under the National Bank for \nAgriculture and Rural Development Act, 1981 (61 of 1981); and  \n(k)the National Housing Bank, established under the National Housing Bank Act, 1987 (53 of 1987).]  \n21[(l) Central Board of Trustees, Employees\' Provident Fund, established under the Employees\' Provident \nFunds and Miscellaneous Provisions Act, 1952 (19 of 1952);  \n(m) any pension fund registered or appointed or regulated by the Pension Fund Regulatory and \nDevelopment Authority under the P ension Fund Regulatory And Development Authority Act, 2013 (23 \nof 2013); and  \n(n) any Standalone Primary Dealers authorised by the Reserve Bank of India constituted under the \nReserve Bank of India Act, 1934 (2 of 1934)] ” \n Note - Footnotes  for the above amen ded portion are as under -  \n17 Inserted by the Securities Contracts (Regulation) (Amendment) Rules, 2003, w.e.f. 28.08.2003.  \n18 Substituted for"" the Life Insurance Corporation of India, established under the Life Insurance \nCorporation Act, 1956 (31 of 1956)""  by Securities Contracts (Regulation) (Amendment) Rules, \n2014, w.e.f.16.1.2014  \n19 Omitted, by Securities Contracts (Regulation) (Amendment) Rules, 2014. w.e.f.16.1.2014. Prior \nto its omission, item (d) read as under:  \n""the General Insurance Corporation of India constituted under the General Insurance Corporation \n(Nationalisation) Act, 1972 (57 of 1972)""  \n20 Inserted, ibid.  \n21Inserted by Securities Contracts (Regulation) (Amendment) Rules, 2014.  w.e.f.16.1.2014  \n \n18 Omitted by GSR 749 (E), dated 12.10.1994  \n19 Substituted by GSR 790(E), dated 07.11.1994  ']"
19,What is the name of the Act that provides for the regulation and supervision of payment systems in India?,"The Payment and Settlement Systems Act, 2007",,"['1 \n THE PAYMENT AND SETTLEMENT SYSTEMS ACT, 2007 \n____________ \nARRANGEMENT OF SECTIONS \n____________ \nCHAPTER I \nPRELIMINARY \nSECTIONS \n1.  Short title, extent and commencement. \n2.  Definitions. \n \nCHAPTER II \nDESIGNATED AUTHORITY AND ITS COMMITTEE \n3.  Designated authority and its Committee. \n \nCHAPTER III \nAUTHORISATION OF PAYMENT SYSTEMS \n4.  Payment system not to operate without authorisation . \n5.  Application for authorisation. \n6.  Inquiry by the Reserve Bank. \n7.  Issue or refusal of authorisation. \n8.  Revocation of authorisation. \n9.  Appeal to the Central Government. \n \nCHAPTER IV \nREGULATION AND SUPERVISION BY THE RESERVE  BANK \n10.  Power to determine standards. \n11.  Notice of change in the payment system. \n12.  Power to call for returns, documents or other infor mation. \n13.  Access to information. \n14.  Power to enter and inspect. \n15.  Information, etc., to be confidential. \n16.  Power to carry out audit and inspection. \n17.  Power to issue directions. \n18.  Power of Reserve Bank to give directions generally.  \n19.  Directions of Reserve Bank to be complied with. \n \nCHAPTER V \nRIGHTS AND DUTIES OF A SYSTEM PROVIDER \n20.  System provider to act in accordance with the Act, regulations, etc. \n21.  Duties of a system provider. \n22.  Duty to keep documents in the payment system confid ential. \n23.  Settlement and netting. \n23A. Protection of funds collected from customers. \n 2 \n CHAPTER VI \nSETTLEMENT OF DISPUTES \nSECTIONS \n24.  Settlement of disputes. \n25.  Dishonour of electronic funds transfer for insuffic iency, etc., of funds in the account. \n \nCHAPTER VII \nOFFENCES AND PENALTIES \n26.  Penalties. \n27.  Offences by companies. \n28.  Cognizance of offences. \n29.  Application of fine. \n30.  Power of Reserve Bank to impose fines. \n31.  Power to compound offences. \n \nCHAPTER VIII \nMISCELLANEOUS \n32.  Act to have overriding effect. \n33.  Mode of recovery of penalty. \n34.  Act not to apply to stock exchanges or clearing cor porations of stock exchanges. \n34A. Act to apply to designated trade repository an d issuer. \n35.  Certain persons deemed to be public servants. \n36.  Protection of action taken in good faith. \n37.  Power to remove difficulties. \n38.  Power of Reserve Bank to make regulations.  3 \n THE PAYMENT AND SETTLEMENT SYSTEMS ACT, 2007 \nACT NO. 51 OF  2007 \n[20 th December , 2007.] \nAn Act to provide for the regulation and supervisio n of payment systems in Indiaand to \ndesignate the Reserve Bank of India as the authorit y for that purpose and for matters \nconnected therewith or incidental thereto. \nBE it enacted by Parliament in the Fifty-eighth Year of the Republic of India as follows: — \nCHAPTER I \nPRELIMINARY  \n1. Short title, extent and commencement.— (1) This Act may be called the Payment and Settlement  \nSystems Act, 2007. \n(2) It extends to the whole of India. \n(3) It shall come into force on such date 1 as the Central Government may, by notification in the \nOfficial Gazette, appoint and different dates may b e appointed for different provisions of this Act, a nd \nany reference to the commencement in any such provi sion of this Act shall be construed as a reference to \nthe commencement of that provision. \n2. Definitions.— (1) In this Act, unless the context otherwise require s, — \n(a) “bank” means, — \n(i) a bank included in the Second Schedule to the Res erve Bank of India Act, 1934(2 of \n1934); \n(ii ) a post office savings bank; \n(iii ) a banking company as defined in clause ( c) of section 5 of the Banking Regulation Act, \n1949 (10 of 1949); \n(iv ) a co-operative bank as defined in clause ( cci ) of section 5, as inserted by section 56 of the \nBanking Regulation Act, 1949 (10 of 1949); and \n(v) such other bank as the Reserve Bank may, by notif ication, specify for the purposes of this \nAct; \n(b) “derivative” means an instrument, to be settled a t a future date, whose value is derived from \nchange in interest rate, foreign exchange rate, cre dit rating or credit index, price of securities (al so \ncalled “underlying”), or any other underlying or a combination of more than one of them and includes \ninterest rate swaps, forward rate agreements, forei gn currency swaps, foreign currency rupee swaps, \nforeign currency options, foreign currency rupee op tions or any other instrument, as may be specified \nby the Reserve Bank from time to time; \n(c) “electronic funds transfer” means any transfer of  funds which is initiated by a person by way \nof instruction, authorisation or order to a bank to  debit or credit an account maintained with that ba nk \nthrough electronic means and includes point of sale  transfers, automated teller machine transactions, \ndirect deposits or withdrawal of funds, transfers i nitiated by telephone, internet and card payment; \n(d) “gross settlement system” means a payment system in which each settlement of funds or \nsecurities occurs on the basis of separate or indiv idual instructions; \n2[(da )“issuer” means a person who issues a legal entity identifier or suchother unique \nidentification (by whatever name called), as may be  specified bythe Reserve Bank from time to time; \n                                                      \n1. 12th August, 2008, vide notification No. S.O. 2032(E), dated 12th August, 2 008, see Gazette of India, Extraordinary, Part II, \nsec. 3( ii ). \n2. Ins. by Act 18 of 2015, s. 2 (w.e.f. 1-6-2015). 4 \n (db ) “legal entity identifier” means a unique identity  code assigned to aperson by an issuer for the \npurpose of identifying that person in such derivati vesor financial transactions, as may be specified b y \nthe Reserve Bank from time totime;] \n(e) “netting” means the determination by the system p rovider of the amount of money or \nsecurities, due or payable or deliverable, as a res ult of setting off or adjusting, the payment \nobligations or delivery obligations among the syste m participants, including the claims and \nobligations arising out of the termination by the s ystem provider, on the insolvency or dissolution or  \nwinding up of any system participant or such other circumstances as the system provider may specify \nin its rules or regulations or bye-laws (by whateve r name called), of the transactions admitted for \nsettlement at a future date so that only a net clai m be demanded or a net obligation be owned; \n(f) “notification” means a notification published in the Official Gazette; \n(g) “payment instruction” means any instrument, autho risation or order in any form, including \nelectronic means, to effect a payment, — \n(i) by a person to a system participant; or \n(ii ) by a system participant to another system partici pant; \n(h) “payment obligation” means an indebtedness that i s owned by one system participant to \nanother system participant as a result of clearing or settlement of one or more payment instructions \nrelating to funds, securities or foreign exchange o r derivatives or other transactions; \n(i) “payment system” means a system that enables paym ent to be effected between a payer and a \nbeneficiary, involving clearing, payment or settlem ent service or all of them, but does not include a \nstock exchange. \nExplanation .—For the purposes of this clause, “payment system” i ncludes the systems enabling \ncredit card operations, debit card operations, smar t card operations, money transfer operations or \nsimilar operations; \n(j) “prescribed” means prescribed by regulations made  under this Act; \n(k) “regulation” means a regulation made under this A ct; \n(l) “Reserve Bank” means the Reserve Bank of India, c onstituted under the Reserve Bank of India \nAct, 1934 (2 of 1934); \n(m) “securities” means the Government securities as d efined in the Public Debt Act, 1944 (18 of \n1944) or such other securities as may be notified b y the Central Government from time to time under \nthat Act; \n(n) “settlement” means settlement of payment instruct ions and includes the settlement of \nsecurities, foreign exchange or derivatives or othe r transactions which involve payment obligations; \n(o) “systemic risk” means the risk arising from — \n(i) the inability of a system participant to meet his  payment obligations under the payment \nsystem as and when they become due; or \n(ii ) any disruption in the system, \nwhich may cause other participants to fail to meet their obligations when due and is likely to have an  \nimpact on the stability of the system: \nProvided that if any doubt or difference arises as to whether a particular risk is likely to have an \nimpact on the stability of the system, the decision  of the Reserve Bank shall be final; \n(p) “system participant” means a bank or any other pe rson participating in a payment system and \nincludes the system provider; \n(q) “system provider” means a person who operates an authorised payment system; ']"
20,What is the definition of 'electronic funds transfer' under the Act?,"Electronic funds transfer means any transfer of funds which is initiated by a person by way of instruction, authorisation or order to a bank to debit or credit an account maintained with that bank through electronic means.",,"['1 \n THE PAYMENT AND SETTLEMENT SYSTEMS ACT, 2007 \n____________ \nARRANGEMENT OF SECTIONS \n____________ \nCHAPTER I \nPRELIMINARY \nSECTIONS \n1.  Short title, extent and commencement. \n2.  Definitions. \n \nCHAPTER II \nDESIGNATED AUTHORITY AND ITS COMMITTEE \n3.  Designated authority and its Committee. \n \nCHAPTER III \nAUTHORISATION OF PAYMENT SYSTEMS \n4.  Payment system not to operate without authorisation . \n5.  Application for authorisation. \n6.  Inquiry by the Reserve Bank. \n7.  Issue or refusal of authorisation. \n8.  Revocation of authorisation. \n9.  Appeal to the Central Government. \n \nCHAPTER IV \nREGULATION AND SUPERVISION BY THE RESERVE  BANK \n10.  Power to determine standards. \n11.  Notice of change in the payment system. \n12.  Power to call for returns, documents or other infor mation. \n13.  Access to information. \n14.  Power to enter and inspect. \n15.  Information, etc., to be confidential. \n16.  Power to carry out audit and inspection. \n17.  Power to issue directions. \n18.  Power of Reserve Bank to give directions generally.  \n19.  Directions of Reserve Bank to be complied with. \n \nCHAPTER V \nRIGHTS AND DUTIES OF A SYSTEM PROVIDER \n20.  System provider to act in accordance with the Act, regulations, etc. \n21.  Duties of a system provider. \n22.  Duty to keep documents in the payment system confid ential. \n23.  Settlement and netting. \n23A. Protection of funds collected from customers. \n 2 \n CHAPTER VI \nSETTLEMENT OF DISPUTES \nSECTIONS \n24.  Settlement of disputes. \n25.  Dishonour of electronic funds transfer for insuffic iency, etc., of funds in the account. \n \nCHAPTER VII \nOFFENCES AND PENALTIES \n26.  Penalties. \n27.  Offences by companies. \n28.  Cognizance of offences. \n29.  Application of fine. \n30.  Power of Reserve Bank to impose fines. \n31.  Power to compound offences. \n \nCHAPTER VIII \nMISCELLANEOUS \n32.  Act to have overriding effect. \n33.  Mode of recovery of penalty. \n34.  Act not to apply to stock exchanges or clearing cor porations of stock exchanges. \n34A. Act to apply to designated trade repository an d issuer. \n35.  Certain persons deemed to be public servants. \n36.  Protection of action taken in good faith. \n37.  Power to remove difficulties. \n38.  Power of Reserve Bank to make regulations.  3 \n THE PAYMENT AND SETTLEMENT SYSTEMS ACT, 2007 \nACT NO. 51 OF  2007 \n[20 th December , 2007.] \nAn Act to provide for the regulation and supervisio n of payment systems in Indiaand to \ndesignate the Reserve Bank of India as the authorit y for that purpose and for matters \nconnected therewith or incidental thereto. \nBE it enacted by Parliament in the Fifty-eighth Year of the Republic of India as follows: — \nCHAPTER I \nPRELIMINARY  \n1. Short title, extent and commencement.— (1) This Act may be called the Payment and Settlement  \nSystems Act, 2007. \n(2) It extends to the whole of India. \n(3) It shall come into force on such date 1 as the Central Government may, by notification in the \nOfficial Gazette, appoint and different dates may b e appointed for different provisions of this Act, a nd \nany reference to the commencement in any such provi sion of this Act shall be construed as a reference to \nthe commencement of that provision. \n2. Definitions.— (1) In this Act, unless the context otherwise require s, — \n(a) “bank” means, — \n(i) a bank included in the Second Schedule to the Res erve Bank of India Act, 1934(2 of \n1934); \n(ii ) a post office savings bank; \n(iii ) a banking company as defined in clause ( c) of section 5 of the Banking Regulation Act, \n1949 (10 of 1949); \n(iv ) a co-operative bank as defined in clause ( cci ) of section 5, as inserted by section 56 of the \nBanking Regulation Act, 1949 (10 of 1949); and \n(v) such other bank as the Reserve Bank may, by notif ication, specify for the purposes of this \nAct; \n(b) “derivative” means an instrument, to be settled a t a future date, whose value is derived from \nchange in interest rate, foreign exchange rate, cre dit rating or credit index, price of securities (al so \ncalled “underlying”), or any other underlying or a combination of more than one of them and includes \ninterest rate swaps, forward rate agreements, forei gn currency swaps, foreign currency rupee swaps, \nforeign currency options, foreign currency rupee op tions or any other instrument, as may be specified \nby the Reserve Bank from time to time; \n(c) “electronic funds transfer” means any transfer of  funds which is initiated by a person by way \nof instruction, authorisation or order to a bank to  debit or credit an account maintained with that ba nk \nthrough electronic means and includes point of sale  transfers, automated teller machine transactions, \ndirect deposits or withdrawal of funds, transfers i nitiated by telephone, internet and card payment; \n(d) “gross settlement system” means a payment system in which each settlement of funds or \nsecurities occurs on the basis of separate or indiv idual instructions; \n2[(da )“issuer” means a person who issues a legal entity identifier or suchother unique \nidentification (by whatever name called), as may be  specified bythe Reserve Bank from time to time; \n                                                      \n1. 12th August, 2008, vide notification No. S.O. 2032(E), dated 12th August, 2 008, see Gazette of India, Extraordinary, Part II, \nsec. 3( ii ). \n2. Ins. by Act 18 of 2015, s. 2 (w.e.f. 1-6-2015). 4 \n (db ) “legal entity identifier” means a unique identity  code assigned to aperson by an issuer for the \npurpose of identifying that person in such derivati vesor financial transactions, as may be specified b y \nthe Reserve Bank from time totime;] \n(e) “netting” means the determination by the system p rovider of the amount of money or \nsecurities, due or payable or deliverable, as a res ult of setting off or adjusting, the payment \nobligations or delivery obligations among the syste m participants, including the claims and \nobligations arising out of the termination by the s ystem provider, on the insolvency or dissolution or  \nwinding up of any system participant or such other circumstances as the system provider may specify \nin its rules or regulations or bye-laws (by whateve r name called), of the transactions admitted for \nsettlement at a future date so that only a net clai m be demanded or a net obligation be owned; \n(f) “notification” means a notification published in the Official Gazette; \n(g) “payment instruction” means any instrument, autho risation or order in any form, including \nelectronic means, to effect a payment, — \n(i) by a person to a system participant; or \n(ii ) by a system participant to another system partici pant; \n(h) “payment obligation” means an indebtedness that i s owned by one system participant to \nanother system participant as a result of clearing or settlement of one or more payment instructions \nrelating to funds, securities or foreign exchange o r derivatives or other transactions; \n(i) “payment system” means a system that enables paym ent to be effected between a payer and a \nbeneficiary, involving clearing, payment or settlem ent service or all of them, but does not include a \nstock exchange. \nExplanation .—For the purposes of this clause, “payment system” i ncludes the systems enabling \ncredit card operations, debit card operations, smar t card operations, money transfer operations or \nsimilar operations; \n(j) “prescribed” means prescribed by regulations made  under this Act; \n(k) “regulation” means a regulation made under this A ct; \n(l) “Reserve Bank” means the Reserve Bank of India, c onstituted under the Reserve Bank of India \nAct, 1934 (2 of 1934); \n(m) “securities” means the Government securities as d efined in the Public Debt Act, 1944 (18 of \n1944) or such other securities as may be notified b y the Central Government from time to time under \nthat Act; \n(n) “settlement” means settlement of payment instruct ions and includes the settlement of \nsecurities, foreign exchange or derivatives or othe r transactions which involve payment obligations; \n(o) “systemic risk” means the risk arising from — \n(i) the inability of a system participant to meet his  payment obligations under the payment \nsystem as and when they become due; or \n(ii ) any disruption in the system, \nwhich may cause other participants to fail to meet their obligations when due and is likely to have an  \nimpact on the stability of the system: \nProvided that if any doubt or difference arises as to whether a particular risk is likely to have an \nimpact on the stability of the system, the decision  of the Reserve Bank shall be final; \n(p) “system participant” means a bank or any other pe rson participating in a payment system and \nincludes the system provider; \n(q) “system provider” means a person who operates an authorised payment system; ']"
21,"What is the punishment for failing to produce any statement, information, returns or other documents, or to furnish any statement, information, returns or other documents, which under section 12 or under section 13, it is his duty to furnish or to answer any question relating to the operation of a payment system which is required by an officer making inspection under section 14?","The person shall be punishable with fine which may extend to ten lakh rupees in respect of each offence and if he persists in such refusal, to a further fine which may extend to twenty-five thousand rupees for every day for which the offence continues.",,"['12 \n (4) The dispute referred to the Reserve Bank for adju dication under sub-section ( 3) shall be disposed \nof by an officer of the Reserve Bank generally or s pecially authorised in this behalf and the decision  of \nthe Reserve Bank shall be final and binding. \n(5) Where a dispute arises between the Reserve Bank, while acting in its capacity as system provider \nor as system participant, and another system provid er or system participant, the matter shall be refer red to \nthe Central Government which may authorise an offic er not below the rank of Joint Secretary for \nsettlement of the dispute and the decision of such officer shall be final. \n25. Dishonour of electronic funds transfer for insu fficiency, etc., of funds in the account.— (1) \nWhere an electronic funds transfer initiated by a p erson from an account maintained by him cannot be \nexecuted on the ground that the amount of money sta nding to the credit of that account is insufficient  to \nhonour the transfer instruction or that it exceeds the amount arranged to be paid from that account by  an \nagreement made with a bank, such person shall be de emed to have committed an offence and shall, \nwithout prejudice to any other provisions of this A ct, be punished with imprisonment for a term which \nmay extend to two years, or with fine which may ext end to twice the amount of the electronic funds \ntransfer, or with both: \nProvided that nothing contained in this section sha ll apply unless — \n(a) the electronic funds transfer was initiated for p ayment of any amount of money to another \nperson for the discharge, in whole or in part, of a ny debt or other liability; \n(b) the electronic funds transfer was initiated in ac cordance with the relevant procedural \nguidelines issued by the system provider; \n(c) the beneficiary makes a demand for the payment of  the said amount of money by giving a \nnotice in writing to the person initiating the elec tronic funds transfer within thirty days of the rec eipt \nof information by him from the bank concerned regar ding the dishonour of the electronic funds \ntransfer; and \n(d) the person initiating the electronic funds transf er fails to make the payment of the said money \nto the beneficiary within fifteen days of the recei pt of the said notice. \n(2) It shall be presumed, unless the contrary is prov ed, that the electronic funds transfer was initiate d \nfor the discharge, in whole or in part, of any debt  or other liability. \n(3) It shall not be a defence in a prosecution for an  offence under sub-section ( 1) that the person, who \ninitiated the electronic funds transfer through an instruction, authorisation, order or agreement, did  not \nhave reason to believe at the time of such instruct ion, authorisation, order or agreement that the cre dit of \nhis account is insufficient to effect the electroni c funds transfer. \n(4) The Court shall, in respect of every proceeding u nder this section, on production of a \ncommunication from the bank denoting the dishonour of electronic funds transfer, presume the fact of \ndishonour of such electronic funds transfer, unless  and until such fact is disproved. \n(5) The provisions of Chapter XVII of the Negotiable Instruments Act, 1881 (26 of 1881) shall apply \nto the dishonour of electronic funds transfer to th e extent the circumstances admit. \nExplanation .—For the purposes of this section, “debt or other li ability” means a legally enforceable \ndebt or other liability, as the case may be. \nCHAPTER VII \nOFFENCES AND PENALTIES \n26. Penalties.— (1)Where a person contravenes the provisions of secti on 4 or fails to comply with the \nterms and conditions subject to which the authorisa tion has been issued under section 7, he shall be \npunishable with imprisonment for a term which shall  not be less than one month but which may extend to  \nten years or with fine which may extend to one cror e rupees or with both and with a further fine which  \nmay extend to one lakh rupees for every day, after the first during which the contravention or failure  to \ncomply continues. 13 \n (2) Whoever in any application for authorisation or i n any return or other document or on any \ninformation required to be furnished by or under, o r for the purpose of, any provision of this Act, wi lfully \nmakes a statement which is false in any material pa rticular, knowing it to be false or wilfully omits to \nmake a material statement, shall be punishable with  imprisonment for a term which may extend to three \nyears and shall also be liable to fine which shall not be less than ten lakh rupees and which may exte nd to \nfifty lakh rupees. \n(3) If any person fails to produce any statement, inf ormation, returns or other documents, or to furnish  \nany statement, information, returns or other docume nts, which under section 12 or under section 13, it  is \nhis duty to furnish or to answer any question relat ing to the operation of a payment system which is \nrequired by an officer making inspection under sect ion 14, he shall be punishable with fine which may \nextend to ten lakh rupees in respect of each offenc e and if he persists in such refusal, to a further fine \nwhich may extend to twenty-five thousand rupees for  every day for which the offence continues. \n(4) If any person discloses any information, the disc losure of which is prohibited under section 22, he \nshall be punishable with imprisonment for a term wh ich may extend to six months, or with fine which \nmay extend to five lakh rupees or an amount equal t o twice the amount of the damages incurred by the a ct \nof such disclosure, whichever is higher or with bot h. \n(5) Where a direction issued under this Act is not co mplied with within the period stipulated by the \nReserve Bank or where no such period is stipulated,  within a reasonable time or where the penalty \nimposed by the Reserve Bank under section 30 is not  paid within a period of thirty days from the date of \nthe order, the system provider or the system partic ipant which has failed to comply with the direction  or \nto pay the penalty shall be punishable with impriso nment for a term which shall not be less than one \nmonth but which may extend to ten years, or with fi ne which may extend to one crore rupees or with bot h \nand where the failure to comply with the direction continues, with further fine which may extend to on e \nlakh rupees for every day, after the first during w hich the contravention continues. \n(6) If any provision of this Act is contravened, or i f any default is made in complying with any other \nrequirement of this Act, or of any regulation, orde r or direction made or given or condition imposed \nthereunder and in respect of which no penalty has b een specified, then, the person guilty of such \ncontravention or default, as the case may be, shall  be punishable with fine which may extend to ten la kh \nrupees and where a contravention or default is a co ntinuing one, with a further fine which may extend to \ntwenty-five thousand rupees for every day, after th e first during which the contravention or default \ncontinues. \n27. Offences by companies.— (1) Where a person committing a contravention of any of the \nprovisions of this Act or any regulation, direction  or order made thereunder is a company, every perso n \nwho, at the time of the contravention, was in-charg e of, and was responsible to, the company for the \nconduct of business of the company, as well as the company, shall be guilty of the contravention and s hall \nbe liable to be proceeded against and punished acco rdingly: \nProvided that nothing contained in this sub-section  shall render any such person liable to punishment \nif he proves that the contravention took place with out his knowledge or that he exercised all due dili gence \nto prevent such contravention. \n(2) Notwithstanding anything contained in sub-section  ( 1), where a contravention of any of the \nprovisions of this Act or of any regulation, direct ion or order made thereunder has been committed by a \ncompany and it is proved that the contravention has  taken place with the consent or connivance of, or is \nattributable to any neglect on the part of any dire ctor, manager, secretary or other officer of the co mpany, \nsuch director, manager, secretary or other officer shall also be deemed to be guilty of the contravent ion \nand shall be liable to be proceeded against and pun ished accordingly. \nExplanation .—For the purposes of this section, — \n(a) “company” means any body corporate and includes a  firm or other association of individuals; \nand \n(b) “director”, in relation to a firm, means a partne r in the firm. ']"
22,Can a person operate a payment system without authorization from the Reserve Bank?,"No, no person, other than the Reserve Bank, shall commence or operate a payment system except under and in accordance with an authorization issued by the Reserve Bank under the provisions of this Act.",,"['5 \n 1[(r)“trade repository” means a person who is engaged i n the business ofcollecting, collating, \nstoring, maintaining, processing or disseminating e lectronicrecords or data relating to such derivativ es \nor financial transactions, as may bespecified by th e Reserve Bank from time to time.] \n(2) Words and expressions used, but not defined in th is Act and defined in the Reserve Bank of India \nAct, 1934 (2 of 1934) or the Banking Regulation Act , 1949 (10 of 1949), shall have the meanings \nrespectively assigned to them in those Acts. \nCHAPTER II \nDESIGNATED AUTHORITY AND ITS COMMITTEE  \n3. Designated authority and its Committee.— (1) The Reserve Bank shall be the designated \nauthority for the regulation and supervision of pay ment systems under this Act. \n(2) The Reserve Bank may, for the purposes of exercis ing the powers and performing the functions \nand discharging the duties conferred on it by or un der this Act, by regulation, constitute a committee  of its \nCentral Board to be known as the Board for Regulati on and Supervision of Payment and Settlement \nSystems. \n(3) The Board constituted under sub-section ( 2) shall consist of the following members, namely: — \n(a) Governor, Reserve Bank, who shall be the Chairper son of the Board; \n(b) Deputy Governors, Reserve Bank, out of whom the D eputy Governor who is in-charge of the \nPayment and Settlement Systems, shall be the Vice-C hairperson of the Board; \n(c) Not exceeding three Directors from the Central Bo ard of the Reserve Bank of India to be \nnominated by the Governor, Reserve Bank. \n(4) The powers and functions of the Board constituted  under sub-section ( 2), the time and venue of its \nmeetings, the procedure to be followed in such meet ings, (including the quorum at such meetings) and \nother matters incidental thereto shall be such as m ay be prescribed. \n(5) The Board for Regulation and Supervision of Payme nt and Settlement Systems constituted under \nclause ( i) of sub-section ( 2) of section 58 of the Reserve Bank of India Act, 1 934 (2 of 1934) shall be \ndeemed to be the Board constituted under this secti on and continue accordingly until the Board is \nreconstituted in accordance with the provisions of this Act and shall be governed by the rules and \nregulations made under the Reserve Bank of India Ac t, 1934 in so far as they are not inconsistent with  the \nprovisions of this Act. \nCHAPTER III \nAUTHORISATION OF PAYMENT SYSTEMS  \n4. Payment system not to operate without authorisat ion.— (1) No person, other than the Reserve \nBank, shall commence or operate a payment system ex cept under and in accordance with an authorisation \nissued by the Reserve Bank under the provisions of this Act: \nProvided that nothing contained in this section sha ll apply to — \n(a) the continued operation of an existing payment sy stem on commencement of this Act for a \nperiod not exceeding six months from such commencem ent, unless within such period, the operator \nof such payment system obtains an authorisation und er this Act or the application for authorisation \nmade under section 7 of this Act is refused by the Reserve Bank; \n(b) any person acting as the duly appointed agent of another person to whom the payment is due; \n(c) a company accepting payments either from its hold ing company or any of its subsidiary \ncompanies or from any other company which is also a  subsidiary of the same holding company; \n                                                      \n1. Ins. by Act 18 of 2015, s. 2 (w.e.f. 1-6-2015). 6 \n (d) any other person whom the Reserve Bank may, after  considering the interests of monetary \npolicy or efficient operation of payment systems, t he size of any payment system or for any other \nreason, by notification, exempt from the provisions  of this section. \n(2) The Reserve Bank may, under sub-section ( 1) of this section, authorise a company or corporati on \nto operate or regulate the existing clearing houses  or new clearing houses of banks in order to have a  \ncommon retail clearing house system for the banks t hroughout the country: \nProvided, however, that not less than fifty-one per  cent.of the equity of such company or corporation \nshall be held by public sector banks. \nExplanation .—For the purposes of this clause, “public sector ban ks” shall include a “corresponding \nnew bank”, “State Bank of India” and “subsidiary ba nk” as defined in section 5 of the Banking \nRegulation Act, 1949 (10 of 1949). \n5. Application for authorisation.— (1) Any person desirous of commencing or carrying on a \npayment system may apply to the Reserve Bank for an  authorisation under this Act. \n(2) An application under sub-section ( 1) shall be made in such form and in such manner and  shall be \naccompanied by such fees as may be prescribed. \n6. Inquiry by the Reserve Bank.— After the receipt of an application under section 5 , and before an \nauthorisation is issued under this Act, the Reserve  Bank may make such inquiries as it may consider \nnecessary for the purpose of satisfying itself abou t the genuineness of the particulars furnished by t he \napplicant, his capacity to operate the payment syst em, the credentials of the participants or for any other \nreason and when such an inquiry is conducted by any  person authorised by it in this behalf, it may req uire \na report from such person in respect of the inquiry . \n7. Issue or refusal of authorisation.— (1) The Reserve Bank may, if satisfied, after any inq uiry \nunder section 6 or otherwise, that the application is complete in all respects and that it conforms to  the \nprovisions of this Act and the regulations issue an  authorisation for operating the payment system und er \nthis Act having regard to the following considerati ons, namely: — \n(i) the need for the proposed payment system or the s ervices proposed to be undertaken by it; \n(ii ) the technical standards or the design of the prop osed payment system; \n(iii ) the terms and conditions of operation of the prop osed payment system including any security \nprocedure; \n(iv ) the manner in which transfer of funds may be effe cted within the payment system; \n(v) the procedure for netting of payment instructions  effecting the payment obligations under the \npayment system; \n(vi ) the financial status, experience of management an d integrity of the applicant; \n(vii ) interests of consumers, including the terms and c onditions governing their relationship with \npayment system providers; \n(viii ) monetary and credit policies; and \n(ix ) such other factors as may be considered relevant by the Reserve Bank. \n(2) An authorisation issued under sub-section ( 1) shall be in such form as may be prescribed and \nshall — \n(a) state the date on which it takes effect; \n(b) state the conditions subject to which the authori sation shall be in force; \n(c) indicate the payment of fees, if any, to be paid for the authorisation to be in force; \n(d) if it considers necessary, require the applicant to furnish such security for the proper conduct \nof the payment system under the provisions of this Act; 7 \n (e) continue to be in force till the authorisation is  revoked. \n(3) Where the Reserve Bank considers that the applica tion for authorisation should be refused, it shall \ngive the applicant a written notice to that effect stating the reasons for the refusal: \nProvided that no such application shall be refused unless the applicant is given a reasonable \nopportunity of being heard. \n(4) Every application for authorisation shall be proc essed by the Reserve Bank as soon as possible \nand an endeavour shall be made to dispose of such a pplication within six months from the date of filin g of \nsuch application. \n8. Revocation of authorisation.— (1) If a system provider, — \n(i) contravenes any provisions of this Act, or \n(ii ) does not comply with the regulations, or \n(iii ) fails to comply with the orders or directions iss ued by the designated authority, or \n(iv ) operates the payment system contrary to the condi tions subject to which the authorisation was \nissued, \nthe Reserve Bank may, by order, revoke the authoris ation given to such system provider under this Act:  \nProvided that no order of revocation under sub-sect ion ( 1) shall be made — \n(i) except after giving the system provider a reasona ble opportunity of being heard; and \n(ii ) without prejudice to the direction of the Reserve  Bank to the system provider that the \noperation of the payment system shall not be carrie d out till the order of revocation is issued. \n(2) Nothing contained in sub-section ( 1) shall apply to a case where the Reserve Bank cons iders it \nnecessary to revoke the authorisation given to a pa yment system in the interest of the monetary policy  of \nthe country or for any other reasons to be specifie d by it in the order. \n(3) The order of revocation issued under sub-section ( 1) shall include necessary provisions to protect \nand safeguard the interests of persons affected by such order of revocation. \n(4) Where a system provider becomes insolvent or diss olved or wound up, such system provider shall \ninform that fact to the Reserve Bank and thereupon the Reserve Bank shall take such steps as deemed \nnecessary to revoke the authorisation issued to suc h system provider to operate the payment system. \n9. Appeal to the Central Government.— (1) Any applicant for an authorisation whose applicat ion \nfor the operation of the payment system is refused under sub-section ( 3) of section 7 or a system provider \nwho is aggrieved by an order of revocation under se ction 8 may, within thirty days from the date on \nwhich the order is communicated to him, appeal to t he Central Government. \n(2) The Central Government shall endeavour to dispose  of an appeal under sub-section ( 1) within a \nperiod of three months. \n(3) The decision of the Central Government on the app eal under sub-section ( 1) shall be final. \nCHAPTER IV \nREGULATION AND SUPERVISION BY THE RESERVE BANK  \n10. Power to determine standards.— (1) The Reserve Bank may, from time to time, prescrib e — \n(a) the format of payment instructions and the size a nd shape of such instructions; \n(b) the timings to be maintained by payment systems; \n(c) the manner of transfer of funds within the paymen t system, either through paper, electronic \nmeans or in any other manner, between banks or betw een banks and other system participants; \n(d) such other standards to be complied with the paym ent systems generally; ']"
23,Does this Act have overriding effect over other laws?,"Yes, the provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force.",,"['14 \n 28. Cognizance of offences.— (1) No court shall take cognizance of an offence puni shable under this \nAct except upon a complaint in writing made by an o fficer of the Reserve Bank generally or specially \nauthorised by it in writing in this behalf, and no court, lower than that of a Metropolitan Magistrate  or a \nJudicial Magistrate of the first class shall try an y such offence: \nProvided that the Court may take cognizance of an o ffence punishable under section 25 upon a \ncomplaint in writing made by the person aggrieved b y the dishonour of the electronic funds transfer. \n(2) Notwithstanding anything contained in the Code of  Criminal Procedure, 1973 (2 of 1974), a \nMagistrate may dispense with the personal attendanc e of the officer of the Reserve Bank filing the \ncomplaint, but the Magistrate may, in his discretio n, at any stage of the proceedings, direct the pers onal \nattendance of the complainant. \n29. Application of fine.— A court imposing any fine under this Act may direct  that the whole or any \npart thereof shall be applied in, or towards paymen t of, the costs of the proceedings. \n30. Power of Reserve Bank to impose fines.— (1) Notwithstanding anything contained in section 26,  \nif a contravention or default of the nature referre d to in sub-section ( 2) or sub-section ( 6) of section 26, as \nthe case may be, the Reserve Bank may impose on the  person contravening or committing default a \npenalty not exceeding five lakh rupees or twice the  amount involved in such contravention or default \nwhere such amount is quantifiable, whichever is mor e, and where such contravention or default is a \ncontinuing one, a further penalty which may extend to twenty-five thousand rupees for every day after the \nfirst during which the contravention or default con tinues. \n(2) For the purpose of imposing penalty under sub-sec tion ( 1), the Reserve Bank shall serve a notice \non the defaulter requiring him to show cause why th e amount specified in the notice should not be \nimposed as a penalty and a reasonable opportunity o f being heard shall also be given to such defaulter . \n(3) Any penalty imposed by the Reserve Bank under thi s section shall be payable within a period of \nthirty days from the date on which notice issued by  the Reserve Bank demanding payment of the sum is \nserved on the defaulter and, in the event of failur e of the person to pay the sum within such period, may \nbe recovered on a direction made by the principal c ivil court having jurisdiction in the area where th e \nregistered office of the defaulter company or the o fficial business of the person is situated: \nProvided that no such direction shall be made, exce pt on an application made by an officer of the \nReserve Bank authorised by it in this behalf. \n(4) The Reserve Bank may recover the amount of penalt y by debiting the current account, if any, of \nthe defaulter or by liquidating the securities held  to the credit of the defaulter or in accordance wi th the \nprovisions of this Act. \n(5) The court which makes a direction under sub-secti on ( 3) shall issue a certificate specifying the \nsum payable by the defaulter and every such certifi cate shall be enforceable in the same manner as it were \na decree made by the court in a civil suit. \n(6) Where any complaint has been filed against any pe rson in any court in respect of the \ncontravention or default of the nature referred to in sub-section ( 2), or, as the case may be, sub-section ( 4) \nof section 26, then, no proceeding for the impositi on of any penalty on the person shall be taken unde r \nthis section. \n31. Power to compound offences.— (1) Notwithstanding anything contained in the Code of  Criminal \nProcedure, 1973 (2 of 1974), any offence punishable  under this Act for any contravention, not being an  \noffence punishable with imprisonment only, or with imprisonment and also with fine, may, on receipt of  \nan application from the person committing such cont ravention either before or after the institution of  any \nproceeding, be compounded by an officer of the Rese rve Bank duly authorised by it in this behalf. \n(2) Where a contravention has been compounded under s ub-section ( 1), no proceeding or further \nproceeding, as the case may be, shall be initiated or continued, as the case may be, against the perso n \ncommitting such contravention under that section, i n respect of the contravention so compounded. \n 15 \n CHAPTER VIII \nMISCELLANEOUS \n32. Act to have overriding effect.— The provisions of this Act shall have effect notwit hstanding \nanything inconsistent therewith contained in any ot her law for the time being in force. \n33.Modeof recovery of penalty.— (1) The penalty imposed on the defaulter by the Reser ve Bank \nunder section 30 may be recovered by issuing a noti ce to any person from whom any amount is due to the  \ndefaulter, by requiring such person to deduct from the amount payable by him to the defaulter, the amo unt \npayable to the Reserve Bank by way of penalty and p ay to the Reserve Bank. \n(2) Save as otherwise provided in this section, every  person to whom a notice is issued under this sub-\nsection shall be bound to comply with such notice, and, in particular, where such notice is issued to a post \noffice, bank or an insurer, it shall not be necessa ry for any passbook, deposit receipt, policy or any  other \ndocument to be produced for the purpose of any entr y, endorsement or the like being made before \npayment is made notwithstanding that any rule, prac tice or requirement to the contrary. \n(3) Any claim respecting any property in relation to which a notice under this sub-section has been \nissued arising after the date of the notice shall b e void as against any demand contained in the notic e. \n(4) Where a person to whom the notice under this sub- section is sent objects to it by a statement on \noath that the sum demanded or any part thereof is n ot due to the defaulter or that he does not hold an y \nmoney for or on account of the defaulter, then, not hing contained in this sub-section shall be deemed to \nrequire such person to pay any such sum or part the reof, as the case may be, but if it is discovered t hat \nsuch statement was false in any material particular , such person shall be personally liable to the Res erve \nBank to the extent of his own liability to the defa ulter on the date of the notice, or to the extent o f the \npenalty imposed on the defaulter by the Reserve Ban k, whichever is less. \n(5) The Reserve Bank may at any time or from time to time, amend or revoke any notice issued under \nthis section or extend the time for making the paym ent in pursuance of such notice. \n(6) The Reserve Bank shall grant a receipt for any am ount paid to it in compliance with a notice \nissued under this section and the person so paying shall be fully discharged from his liability to the  \ndefaulter to the extent of the amount so paid. \n(7) Any person discharging any liability to the defau lter after the receipt of a notice under this secti on \nshall be personally liable to the Reserve Bank to t he extent of his own liability to the defaulter so \ndischarged or to the extent of the penalty imposed on the defaulter by the Reserve Bank, whichever is \nless. \n(8) If the person to whom the notice under this secti on is sent fails to make payment in pursuance \nthereof to the Reserve Bank, he shall be deemed to be the defaulter in respect of the amount specified  in \nthe notice and further proceedings may be taken aga inst him for the realisation of the amount as if it  were \nan arrear due from him in the manner provided in th is section. \nExplanation .—For the purposes of this section, “defaulter” means  any person or system provider or \nsystem participant on whom the Reserve Bank has imp osed a penalty under section 30. \n34. Act not to apply to stock exchanges or clearing  corporations of stock exchanges.— Nothing \ncontained in this Act shall apply to stock exchange s or the clearing corporations of the stock exchang es. \n1[34A. Act to apply to designated trade repository an d issuer.— (1) The provisions of this Act \nshall apply to, or in relation to, a designatedtrad e repository or issuer, as they apply to, or in rel ation to, \npayment systems to theextent applicable, subject to  the modification that, throughout this Act, unless  \nthecontext otherwise requires,— \n(a) references to a “payment system” or “system provi der” shall beconstrued as references to a \n“designated trade repository” or “issuer”, as theca se may be; \n \n                                                      \n1. Ins. by Act 18 of 2015, s. 5 (w.e.f. 1-6-2015). ']"
24,What is the power of the Central Government to remove difficulties under this Act?,"If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions as appear to it to be necessary or expedient for removing the difficulty, provided that no order shall be made under this section after the expiry of a period of two years from the commencement of this Act.",,"['16 \n (b) references to “commencement of this Act” shall be  construed withreference to–– \n(i) a designated trade repository, as references to t he date on whicha trade repository is \nspecified by the Reserve Bank as a designated trade repository; and \n(ii ) an issuer, as references to commencement of the P ayment andSettlement Systems \n(Amendment) Act, 2015 (18 of 2015). \n(2) The Reserve Bank may, on an application by a desi gnated trade repository orotherwise, permit or \ndirect the designated trade repository to provide s uch other servicesas are deemed necessary from time  to \ntime. \nExplanation .—For the purposes of this section, the expression “d esignatedtrade repository” shall \nmean a trade repository or a class of trade reposit ories, as maybe specified by the Reserve Bank from time \nto time.] \n35. Certain persons deemed to be public servants.— Every officer of the Reserve Bank who has \nbeen entrusted with any power under this Act, shall  be deemed to be a public servant within the meanin g \nof section 21 of the Indian Penal Code (45 of 1860) . \n36. Protection of action taken in good faith.— No suit or other legal proceedings shall lie agains t \nthe Central Government, the Reserve Bank, or any of ficer thereof for any damage caused or likely to be  \ncaused by anything which is in good faith done or i ntended to be done in pursuance of this Act, any \nregulations, order or direction made or given there under. \n37. Power to remove difficulties.— (1) If any difficulty arises in giving effect to the provisions of \nthis Act, the Central Government may, by order publ ished in the Official Gazette, make such provision is \nnot inconsistent with the provisions of this Act as  appear to it to be necessary or expedient for remo ving \nthe difficulty: \nProvided that no order shall be made under this sec tion after the expiry of a period of two years from  \nthe commencement of this Act. \n(2) Every order made under this section shall be laid , as soon as may be after it is made, before each \nHouse of Parliament. \n38. Power of Reserve Bank to make regulations.— (1) The Reserve Bank may, by notification, \nmake regulations consistent with this Act to carry out the provisions of this Act. \n(2) In particular, and without prejudice to the gener ality of the foregoing provision, such regulations \nmay provide for all or any of the following matters , namely: — \n(a) the powers and functions of the Committee constit uted under sub-section ( 2), the time and \nvenue of its meetings and the procedure to be follo wed by it at its meetings (including the quorum at \nsuch meetings) under sub-section ( 4) of section 3; \n(b) the form and manner in which an application for a uthorisation for commencing or carrying on \na payment system shall be made and the fees which s hall accompany such application under sub-\nsection ( 2) of section 5; \n(c) the form in which an authorisation to operate a p ayment system under this Act shall be issued \nunder sub-section ( 2) of section 7; \n(d) the format of payment instructions and other matt ers relating to determination of standards to \nbe complied with by the payment systems under sub-s ection ( 1) of section 10; \n(e) the intervals, at which and the form and manner i n which the information or returns required \nby the Reserve Bank shall be furnished under sectio n 12; \n(f) such other matters as are required to be, or may be, prescribed. \n(2) Any regulation made under this section shall have  effect from such earlier or later date (nor earlie r \nthan the date of commencement of this Act) as may b e specified in the regulation. 17 \n (3) Every regulation shall, as soon as may be after i t is made by the Reserve Bank, be forwarded to \nthe Central Government and that Central Government shall cause a copy of the same to be laid before \neach House of Parliament, while it is in session, f or a total period of thirty days which may be compr ised \nin one session or in two or more successive session s, and if, before the expiry of the session immedia tely \nfollowing the session or the successive sessions af oresaid, both Houses agree in making any modificati on \nin the regulation, or both Houses agree that the re gulation should not be made, the regulation shall, \nthereafter, have effect only in such modified form or be of no effect, as the case may be; so, however , that \nany such modification or annulment shall be without  prejudice to the validity of anything previously d one \nunder that regulation. \n_____________ ']"
25,Can Parliament modify or annul regulations made by the Reserve Bank?,"Yes, if both Houses of Parliament agree in making any modification in the regulation, or both Houses agree that the regulation should not be made, the regulation shall, thereafter, have effect only in such modified form or be of no effect, as the case may be.",,"['16 \n (b) references to “commencement of this Act” shall be  construed withreference to–– \n(i) a designated trade repository, as references to t he date on whicha trade repository is \nspecified by the Reserve Bank as a designated trade repository; and \n(ii ) an issuer, as references to commencement of the P ayment andSettlement Systems \n(Amendment) Act, 2015 (18 of 2015). \n(2) The Reserve Bank may, on an application by a desi gnated trade repository orotherwise, permit or \ndirect the designated trade repository to provide s uch other servicesas are deemed necessary from time  to \ntime. \nExplanation .—For the purposes of this section, the expression “d esignatedtrade repository” shall \nmean a trade repository or a class of trade reposit ories, as maybe specified by the Reserve Bank from time \nto time.] \n35. Certain persons deemed to be public servants.— Every officer of the Reserve Bank who has \nbeen entrusted with any power under this Act, shall  be deemed to be a public servant within the meanin g \nof section 21 of the Indian Penal Code (45 of 1860) . \n36. Protection of action taken in good faith.— No suit or other legal proceedings shall lie agains t \nthe Central Government, the Reserve Bank, or any of ficer thereof for any damage caused or likely to be  \ncaused by anything which is in good faith done or i ntended to be done in pursuance of this Act, any \nregulations, order or direction made or given there under. \n37. Power to remove difficulties.— (1) If any difficulty arises in giving effect to the provisions of \nthis Act, the Central Government may, by order publ ished in the Official Gazette, make such provision is \nnot inconsistent with the provisions of this Act as  appear to it to be necessary or expedient for remo ving \nthe difficulty: \nProvided that no order shall be made under this sec tion after the expiry of a period of two years from  \nthe commencement of this Act. \n(2) Every order made under this section shall be laid , as soon as may be after it is made, before each \nHouse of Parliament. \n38. Power of Reserve Bank to make regulations.— (1) The Reserve Bank may, by notification, \nmake regulations consistent with this Act to carry out the provisions of this Act. \n(2) In particular, and without prejudice to the gener ality of the foregoing provision, such regulations \nmay provide for all or any of the following matters , namely: — \n(a) the powers and functions of the Committee constit uted under sub-section ( 2), the time and \nvenue of its meetings and the procedure to be follo wed by it at its meetings (including the quorum at \nsuch meetings) under sub-section ( 4) of section 3; \n(b) the form and manner in which an application for a uthorisation for commencing or carrying on \na payment system shall be made and the fees which s hall accompany such application under sub-\nsection ( 2) of section 5; \n(c) the form in which an authorisation to operate a p ayment system under this Act shall be issued \nunder sub-section ( 2) of section 7; \n(d) the format of payment instructions and other matt ers relating to determination of standards to \nbe complied with by the payment systems under sub-s ection ( 1) of section 10; \n(e) the intervals, at which and the form and manner i n which the information or returns required \nby the Reserve Bank shall be furnished under sectio n 12; \n(f) such other matters as are required to be, or may be, prescribed. \n(2) Any regulation made under this section shall have  effect from such earlier or later date (nor earlie r \nthan the date of commencement of this Act) as may b e specified in the regulation. 17 \n (3) Every regulation shall, as soon as may be after i t is made by the Reserve Bank, be forwarded to \nthe Central Government and that Central Government shall cause a copy of the same to be laid before \neach House of Parliament, while it is in session, f or a total period of thirty days which may be compr ised \nin one session or in two or more successive session s, and if, before the expiry of the session immedia tely \nfollowing the session or the successive sessions af oresaid, both Houses agree in making any modificati on \nin the regulation, or both Houses agree that the re gulation should not be made, the regulation shall, \nthereafter, have effect only in such modified form or be of no effect, as the case may be; so, however , that \nany such modification or annulment shall be without  prejudice to the validity of anything previously d one \nunder that regulation. \n_____________ ']"
26,Can the Reserve Bank disclose any document or information obtained by it under sections 12 to 14 to any person?,"Yes, the Reserve Bank may disclose any document or information obtained by it under sections 12 to 14 to any person to whom the disclosure of such document or information is considered necessary for protecting the integrity, effectiveness, or security of the payment system, or in the interest of banking or monetary policy or the operation of the payment systems generally or in the public interest.",,"['8 \n (e) the criteria for membership of payment systems in cluding continuation, termination and \nrejection of membership; \n(f) the conditions subject to which the system partic ipants shall participate in such fund transfers \nand the rights and obligations of the system partic ipants in such funds. \n(2) Without prejudice to the provisions of sub-sectio n ( 1), the Reserve Bank may, from time to time, \nissue such guidelines, as it may consider necessary  for the proper and efficient management of the \npayment systems generally or with reference to any particular payment system. \n11. Notice of changein the payment system.— (1) No system provider shall cause any change in the \nsystem which would affect the structure or the oper ation of the payment system without — \n(a) the prior approval of the Reserve Bank; and \n(b) giving notice of not less than thirty days to the  system participants after the approval of the \nReserve Bank: \nProvided that in the interest of monetary policy of  the country or in public interest, the Reserve \nBank may permit the system provider to make any cha nges in a payment system without giving \nnotice to the system participants under clause ( b) or requiring the system provider to give notice f or a \nperiod longer than thirty days. \n(2) Where the Reserve Bank has any objection, to the proposed change for any reason, it shall \ncommunicate such objection to the systems provider within two weeks of receipt of the intimation of th e \nproposed changes from the system provider. \n(3) The system provider shall, within a period of two  weeks of the receipt of the objections from the \nReserve Bank forward his comments to the Reserve Ba nk and the proposed changes may be effected only \nafter the receipt of approval from the Reserve Bank . \n12. Power to call for returns, documents or other i nformation.— The Reserve Bank may call for \nfrom any system provider such returns or documents as it may require or other information in regard to  \nthe operation of his payment system at such interva ls, in such form and in such manner, as the Reserve  \nBank may require from time to time or as may be pre scribed and such order shall be complied with. \n13. Access to information.— The Reserve Bank shall have right to access any inf ormation relating to \nthe operation of any payment system and system prov ider and all the system participants shall provide \naccess to such information to the Reserve Bank. \n14. Power to enter and inspect.— Any officer of the Reserve Bank duly authorised by it in writing in \nthis behalf, may for ensuring compliance with the p rovisions of this Act or any regulations, enter any  \npremises where a payment system is being operated a nd may inspect any equipment, including any \ncomputer system or other documents situated at such  premises and call upon any employee of such \nsystem provider or participant thereof or any other  person working in such premises to furnish such \ninformation or documents as may be required by such  officer. \n15. Information, etc., to be confidential.— (1) Subject to the provisions of sub-section ( 2), any \ndocument or information obtained by the Reserve Ban k under sections 12 to 14 (both inclusive) shall be  \nkept confidential. \n(2) Notwithstanding anything contained in sub-section  ( 1), the Reserve Bank may disclose any \ndocument or information obtained by it under sectio ns 12 to 14 (both inclusive) to any person to whom \nthe disclosure of such document or information is c onsidered necessary for protecting the integrity, \neffectiveness or security of the payment system, or  in the interest of banking or monetary policy or t he \noperation of the payment systems generally or in th e public interest. \n16. Power to carry out audit and inspection.— The Reserve Bank may, for the purpose of carrying \nout its functions under this Act, conduct or get co nducted audits and inspections of a payment system or \nparticipants thereof and it shall be the duty of th e system provider and the system participants to as sist the \nReserve Bank to carry out such audit or inspection,  as the case may be. \n 9 \n 17. Power to issue directions.— Where the Reserve Bank is of the opinion that, — \n(a) a payment system or a system participant is engag ing in, or is about to engage in, any act, \nomission or course of conduct that results, or is l ikely to result, in systemic risk being inadequatel y \ncontrolled; or \n(b) any action under clause ( a) is likely to affect the payment system, the monet ary policy or the \ncredit policy of the country, \nthe Reserve Bank may issue directions in writing to  such payment system or system participant requirin g \nit, within such time as the Reserve Bank may specif y — \n(i) to cease and desist from engaging in the act, omi ssion or course of conduct or to ensure the \nsystem participants to cease and desist from the ac t, omission or course of conduct; or \n(ii ) to perform such acts as may be necessary, in the opinion of the Reserve Bank, to remedy the \nsituation. \n18. Power of Reserve Bank to give directions genera lly.— Without prejudice to the provisions of \nthe foregoing, the Reserve Bank may, if it is satis fied that for the purpose of enabling it to regulat e the \npayment systems or in the interest of management or  operation of any of the payment systems or in publ ic \ninterest, it is necessary so to do, lay down polici es relating to the regulation of payment systems in cluding \nelectronic, non-electronic, domestic and internatio nal payment systems affecting domestic transactions  \nand give such directions in writing as it may consi der necessary to system providers or the system \nparticipants or any other person either generally o r to any such agency and in particular, pertaining to the \nconduct of business relating to payment systems. \n19. Directions of Reserve Bank to be complied with. —Every person to whom a direction has been \nissued by the Reserve Bank under this Act shall com ply with such direction without any delay and a \nreport of compliance shall be furnished to the Rese rve Bank within the time allowed by it. \nCHAPTER V \nRIGHTS AND DUTIES OF A SYSTEM PROVIDER  \n20. System provider to act in accordance with the A ct, regulations, etc.— Every system provider \nshall operate the payment system in accordance with  the provisions of this Act, the regulations, the \ncontract governing the relationship among the syste m participants, the rules and regulations which dea l \nwith the operation of the payment system and the co nditions subject to which the authorisation is issu ed, \nand the directions given by the Reserve Bank from t ime to time. \n21. Duties of a system provider.— (1) Every system provider shall disclose to the exist ing or \npotential system participants, the terms and condit ions including the charges and the limitations of \nliability under the payment system, supply them wit h copies of the rules and regulations governing the  \noperation of the payment system, netting arrangemen ts and other relevant documents. \n(2) It shall be the duty of every system provider to maintain the standards determined under this Act. \n22. Duty to keep documents in the payment system co nfidential.— (1) A system provider shall not \ndisclose to any other person the existence or conte nts of any document or part thereof or other \ninformation given to him by a system participant, e xcept where such disclosure is required under the \nprovisions of this Act or the disclosure is made wi th the express or implied consent of the system \nparticipant concerned or where such disclosure is i n obedience to the orders passed by a court of \ncompetent jurisdiction or a statutory authority in exercise of the powers conferred by a statute. \n(2) The provisions of the Bankers’ Book Evidence Act,  1891(18 of 1991) shall apply in relation to the \ninformation or documents or other books in whatever  form maintained by the system provider. \n23. Settlement and netting.— (1) The payment obligations and settlement instructio ns among the \nsystem participants shall be determined in accordan ce with the gross or netting procedure, as the case  ']"
27,Is this Act applicable to stock exchanges or clearing corporations of stock exchanges?,"No, nothing contained in this Act shall apply to stock exchanges or the clearing corporations of the stock exchanges.",,"['14 \n 28. Cognizance of offences.— (1) No court shall take cognizance of an offence puni shable under this \nAct except upon a complaint in writing made by an o fficer of the Reserve Bank generally or specially \nauthorised by it in writing in this behalf, and no court, lower than that of a Metropolitan Magistrate  or a \nJudicial Magistrate of the first class shall try an y such offence: \nProvided that the Court may take cognizance of an o ffence punishable under section 25 upon a \ncomplaint in writing made by the person aggrieved b y the dishonour of the electronic funds transfer. \n(2) Notwithstanding anything contained in the Code of  Criminal Procedure, 1973 (2 of 1974), a \nMagistrate may dispense with the personal attendanc e of the officer of the Reserve Bank filing the \ncomplaint, but the Magistrate may, in his discretio n, at any stage of the proceedings, direct the pers onal \nattendance of the complainant. \n29. Application of fine.— A court imposing any fine under this Act may direct  that the whole or any \npart thereof shall be applied in, or towards paymen t of, the costs of the proceedings. \n30. Power of Reserve Bank to impose fines.— (1) Notwithstanding anything contained in section 26,  \nif a contravention or default of the nature referre d to in sub-section ( 2) or sub-section ( 6) of section 26, as \nthe case may be, the Reserve Bank may impose on the  person contravening or committing default a \npenalty not exceeding five lakh rupees or twice the  amount involved in such contravention or default \nwhere such amount is quantifiable, whichever is mor e, and where such contravention or default is a \ncontinuing one, a further penalty which may extend to twenty-five thousand rupees for every day after the \nfirst during which the contravention or default con tinues. \n(2) For the purpose of imposing penalty under sub-sec tion ( 1), the Reserve Bank shall serve a notice \non the defaulter requiring him to show cause why th e amount specified in the notice should not be \nimposed as a penalty and a reasonable opportunity o f being heard shall also be given to such defaulter . \n(3) Any penalty imposed by the Reserve Bank under thi s section shall be payable within a period of \nthirty days from the date on which notice issued by  the Reserve Bank demanding payment of the sum is \nserved on the defaulter and, in the event of failur e of the person to pay the sum within such period, may \nbe recovered on a direction made by the principal c ivil court having jurisdiction in the area where th e \nregistered office of the defaulter company or the o fficial business of the person is situated: \nProvided that no such direction shall be made, exce pt on an application made by an officer of the \nReserve Bank authorised by it in this behalf. \n(4) The Reserve Bank may recover the amount of penalt y by debiting the current account, if any, of \nthe defaulter or by liquidating the securities held  to the credit of the defaulter or in accordance wi th the \nprovisions of this Act. \n(5) The court which makes a direction under sub-secti on ( 3) shall issue a certificate specifying the \nsum payable by the defaulter and every such certifi cate shall be enforceable in the same manner as it were \na decree made by the court in a civil suit. \n(6) Where any complaint has been filed against any pe rson in any court in respect of the \ncontravention or default of the nature referred to in sub-section ( 2), or, as the case may be, sub-section ( 4) \nof section 26, then, no proceeding for the impositi on of any penalty on the person shall be taken unde r \nthis section. \n31. Power to compound offences.— (1) Notwithstanding anything contained in the Code of  Criminal \nProcedure, 1973 (2 of 1974), any offence punishable  under this Act for any contravention, not being an  \noffence punishable with imprisonment only, or with imprisonment and also with fine, may, on receipt of  \nan application from the person committing such cont ravention either before or after the institution of  any \nproceeding, be compounded by an officer of the Rese rve Bank duly authorised by it in this behalf. \n(2) Where a contravention has been compounded under s ub-section ( 1), no proceeding or further \nproceeding, as the case may be, shall be initiated or continued, as the case may be, against the perso n \ncommitting such contravention under that section, i n respect of the contravention so compounded. \n 15 \n CHAPTER VIII \nMISCELLANEOUS \n32. Act to have overriding effect.— The provisions of this Act shall have effect notwit hstanding \nanything inconsistent therewith contained in any ot her law for the time being in force. \n33.Modeof recovery of penalty.— (1) The penalty imposed on the defaulter by the Reser ve Bank \nunder section 30 may be recovered by issuing a noti ce to any person from whom any amount is due to the  \ndefaulter, by requiring such person to deduct from the amount payable by him to the defaulter, the amo unt \npayable to the Reserve Bank by way of penalty and p ay to the Reserve Bank. \n(2) Save as otherwise provided in this section, every  person to whom a notice is issued under this sub-\nsection shall be bound to comply with such notice, and, in particular, where such notice is issued to a post \noffice, bank or an insurer, it shall not be necessa ry for any passbook, deposit receipt, policy or any  other \ndocument to be produced for the purpose of any entr y, endorsement or the like being made before \npayment is made notwithstanding that any rule, prac tice or requirement to the contrary. \n(3) Any claim respecting any property in relation to which a notice under this sub-section has been \nissued arising after the date of the notice shall b e void as against any demand contained in the notic e. \n(4) Where a person to whom the notice under this sub- section is sent objects to it by a statement on \noath that the sum demanded or any part thereof is n ot due to the defaulter or that he does not hold an y \nmoney for or on account of the defaulter, then, not hing contained in this sub-section shall be deemed to \nrequire such person to pay any such sum or part the reof, as the case may be, but if it is discovered t hat \nsuch statement was false in any material particular , such person shall be personally liable to the Res erve \nBank to the extent of his own liability to the defa ulter on the date of the notice, or to the extent o f the \npenalty imposed on the defaulter by the Reserve Ban k, whichever is less. \n(5) The Reserve Bank may at any time or from time to time, amend or revoke any notice issued under \nthis section or extend the time for making the paym ent in pursuance of such notice. \n(6) The Reserve Bank shall grant a receipt for any am ount paid to it in compliance with a notice \nissued under this section and the person so paying shall be fully discharged from his liability to the  \ndefaulter to the extent of the amount so paid. \n(7) Any person discharging any liability to the defau lter after the receipt of a notice under this secti on \nshall be personally liable to the Reserve Bank to t he extent of his own liability to the defaulter so \ndischarged or to the extent of the penalty imposed on the defaulter by the Reserve Bank, whichever is \nless. \n(8) If the person to whom the notice under this secti on is sent fails to make payment in pursuance \nthereof to the Reserve Bank, he shall be deemed to be the defaulter in respect of the amount specified  in \nthe notice and further proceedings may be taken aga inst him for the realisation of the amount as if it  were \nan arrear due from him in the manner provided in th is section. \nExplanation .—For the purposes of this section, “defaulter” means  any person or system provider or \nsystem participant on whom the Reserve Bank has imp osed a penalty under section 30. \n34. Act not to apply to stock exchanges or clearing  corporations of stock exchanges.— Nothing \ncontained in this Act shall apply to stock exchange s or the clearing corporations of the stock exchang es. \n1[34A. Act to apply to designated trade repository an d issuer.— (1) The provisions of this Act \nshall apply to, or in relation to, a designatedtrad e repository or issuer, as they apply to, or in rel ation to, \npayment systems to theextent applicable, subject to  the modification that, throughout this Act, unless  \nthecontext otherwise requires,— \n(a) references to a “payment system” or “system provi der” shall beconstrued as references to a \n“designated trade repository” or “issuer”, as theca se may be; \n \n                                                      \n1. Ins. by Act 18 of 2015, s. 5 (w.e.f. 1-6-2015). ']"
28,What is the composition of the Board for Regulation and Supervision of Payment and Settlement Systems?,"The Board shall consist of the Governor, Reserve Bank, who shall be the Chairperson of the Board; Deputy Governors, Reserve Bank, out of whom the Deputy Governor who is in-charge of the Payment and Settlement Systems, shall be the Vice-Chairperson of the Board; and not exceeding three Directors from the Central Board of the Reserve Bank of India to be nominated by the Governor, Reserve Bank.",,"['5 \n 1[(r)“trade repository” means a person who is engaged i n the business ofcollecting, collating, \nstoring, maintaining, processing or disseminating e lectronicrecords or data relating to such derivativ es \nor financial transactions, as may bespecified by th e Reserve Bank from time to time.] \n(2) Words and expressions used, but not defined in th is Act and defined in the Reserve Bank of India \nAct, 1934 (2 of 1934) or the Banking Regulation Act , 1949 (10 of 1949), shall have the meanings \nrespectively assigned to them in those Acts. \nCHAPTER II \nDESIGNATED AUTHORITY AND ITS COMMITTEE  \n3. Designated authority and its Committee.— (1) The Reserve Bank shall be the designated \nauthority for the regulation and supervision of pay ment systems under this Act. \n(2) The Reserve Bank may, for the purposes of exercis ing the powers and performing the functions \nand discharging the duties conferred on it by or un der this Act, by regulation, constitute a committee  of its \nCentral Board to be known as the Board for Regulati on and Supervision of Payment and Settlement \nSystems. \n(3) The Board constituted under sub-section ( 2) shall consist of the following members, namely: — \n(a) Governor, Reserve Bank, who shall be the Chairper son of the Board; \n(b) Deputy Governors, Reserve Bank, out of whom the D eputy Governor who is in-charge of the \nPayment and Settlement Systems, shall be the Vice-C hairperson of the Board; \n(c) Not exceeding three Directors from the Central Bo ard of the Reserve Bank of India to be \nnominated by the Governor, Reserve Bank. \n(4) The powers and functions of the Board constituted  under sub-section ( 2), the time and venue of its \nmeetings, the procedure to be followed in such meet ings, (including the quorum at such meetings) and \nother matters incidental thereto shall be such as m ay be prescribed. \n(5) The Board for Regulation and Supervision of Payme nt and Settlement Systems constituted under \nclause ( i) of sub-section ( 2) of section 58 of the Reserve Bank of India Act, 1 934 (2 of 1934) shall be \ndeemed to be the Board constituted under this secti on and continue accordingly until the Board is \nreconstituted in accordance with the provisions of this Act and shall be governed by the rules and \nregulations made under the Reserve Bank of India Ac t, 1934 in so far as they are not inconsistent with  the \nprovisions of this Act. \nCHAPTER III \nAUTHORISATION OF PAYMENT SYSTEMS  \n4. Payment system not to operate without authorisat ion.— (1) No person, other than the Reserve \nBank, shall commence or operate a payment system ex cept under and in accordance with an authorisation \nissued by the Reserve Bank under the provisions of this Act: \nProvided that nothing contained in this section sha ll apply to — \n(a) the continued operation of an existing payment sy stem on commencement of this Act for a \nperiod not exceeding six months from such commencem ent, unless within such period, the operator \nof such payment system obtains an authorisation und er this Act or the application for authorisation \nmade under section 7 of this Act is refused by the Reserve Bank; \n(b) any person acting as the duly appointed agent of another person to whom the payment is due; \n(c) a company accepting payments either from its hold ing company or any of its subsidiary \ncompanies or from any other company which is also a  subsidiary of the same holding company; \n                                                      \n1. Ins. by Act 18 of 2015, s. 2 (w.e.f. 1-6-2015). 6 \n (d) any other person whom the Reserve Bank may, after  considering the interests of monetary \npolicy or efficient operation of payment systems, t he size of any payment system or for any other \nreason, by notification, exempt from the provisions  of this section. \n(2) The Reserve Bank may, under sub-section ( 1) of this section, authorise a company or corporati on \nto operate or regulate the existing clearing houses  or new clearing houses of banks in order to have a  \ncommon retail clearing house system for the banks t hroughout the country: \nProvided, however, that not less than fifty-one per  cent.of the equity of such company or corporation \nshall be held by public sector banks. \nExplanation .—For the purposes of this clause, “public sector ban ks” shall include a “corresponding \nnew bank”, “State Bank of India” and “subsidiary ba nk” as defined in section 5 of the Banking \nRegulation Act, 1949 (10 of 1949). \n5. Application for authorisation.— (1) Any person desirous of commencing or carrying on a \npayment system may apply to the Reserve Bank for an  authorisation under this Act. \n(2) An application under sub-section ( 1) shall be made in such form and in such manner and  shall be \naccompanied by such fees as may be prescribed. \n6. Inquiry by the Reserve Bank.— After the receipt of an application under section 5 , and before an \nauthorisation is issued under this Act, the Reserve  Bank may make such inquiries as it may consider \nnecessary for the purpose of satisfying itself abou t the genuineness of the particulars furnished by t he \napplicant, his capacity to operate the payment syst em, the credentials of the participants or for any other \nreason and when such an inquiry is conducted by any  person authorised by it in this behalf, it may req uire \na report from such person in respect of the inquiry . \n7. Issue or refusal of authorisation.— (1) The Reserve Bank may, if satisfied, after any inq uiry \nunder section 6 or otherwise, that the application is complete in all respects and that it conforms to  the \nprovisions of this Act and the regulations issue an  authorisation for operating the payment system und er \nthis Act having regard to the following considerati ons, namely: — \n(i) the need for the proposed payment system or the s ervices proposed to be undertaken by it; \n(ii ) the technical standards or the design of the prop osed payment system; \n(iii ) the terms and conditions of operation of the prop osed payment system including any security \nprocedure; \n(iv ) the manner in which transfer of funds may be effe cted within the payment system; \n(v) the procedure for netting of payment instructions  effecting the payment obligations under the \npayment system; \n(vi ) the financial status, experience of management an d integrity of the applicant; \n(vii ) interests of consumers, including the terms and c onditions governing their relationship with \npayment system providers; \n(viii ) monetary and credit policies; and \n(ix ) such other factors as may be considered relevant by the Reserve Bank. \n(2) An authorisation issued under sub-section ( 1) shall be in such form as may be prescribed and \nshall — \n(a) state the date on which it takes effect; \n(b) state the conditions subject to which the authori sation shall be in force; \n(c) indicate the payment of fees, if any, to be paid for the authorisation to be in force; \n(d) if it considers necessary, require the applicant to furnish such security for the proper conduct \nof the payment system under the provisions of this Act; 7 \n (e) continue to be in force till the authorisation is  revoked. \n(3) Where the Reserve Bank considers that the applica tion for authorisation should be refused, it shall \ngive the applicant a written notice to that effect stating the reasons for the refusal: \nProvided that no such application shall be refused unless the applicant is given a reasonable \nopportunity of being heard. \n(4) Every application for authorisation shall be proc essed by the Reserve Bank as soon as possible \nand an endeavour shall be made to dispose of such a pplication within six months from the date of filin g of \nsuch application. \n8. Revocation of authorisation.— (1) If a system provider, — \n(i) contravenes any provisions of this Act, or \n(ii ) does not comply with the regulations, or \n(iii ) fails to comply with the orders or directions iss ued by the designated authority, or \n(iv ) operates the payment system contrary to the condi tions subject to which the authorisation was \nissued, \nthe Reserve Bank may, by order, revoke the authoris ation given to such system provider under this Act:  \nProvided that no order of revocation under sub-sect ion ( 1) shall be made — \n(i) except after giving the system provider a reasona ble opportunity of being heard; and \n(ii ) without prejudice to the direction of the Reserve  Bank to the system provider that the \noperation of the payment system shall not be carrie d out till the order of revocation is issued. \n(2) Nothing contained in sub-section ( 1) shall apply to a case where the Reserve Bank cons iders it \nnecessary to revoke the authorisation given to a pa yment system in the interest of the monetary policy  of \nthe country or for any other reasons to be specifie d by it in the order. \n(3) The order of revocation issued under sub-section ( 1) shall include necessary provisions to protect \nand safeguard the interests of persons affected by such order of revocation. \n(4) Where a system provider becomes insolvent or diss olved or wound up, such system provider shall \ninform that fact to the Reserve Bank and thereupon the Reserve Bank shall take such steps as deemed \nnecessary to revoke the authorisation issued to suc h system provider to operate the payment system. \n9. Appeal to the Central Government.— (1) Any applicant for an authorisation whose applicat ion \nfor the operation of the payment system is refused under sub-section ( 3) of section 7 or a system provider \nwho is aggrieved by an order of revocation under se ction 8 may, within thirty days from the date on \nwhich the order is communicated to him, appeal to t he Central Government. \n(2) The Central Government shall endeavour to dispose  of an appeal under sub-section ( 1) within a \nperiod of three months. \n(3) The decision of the Central Government on the app eal under sub-section ( 1) shall be final. \nCHAPTER IV \nREGULATION AND SUPERVISION BY THE RESERVE BANK  \n10. Power to determine standards.— (1) The Reserve Bank may, from time to time, prescrib e — \n(a) the format of payment instructions and the size a nd shape of such instructions; \n(b) the timings to be maintained by payment systems; \n(c) the manner of transfer of funds within the paymen t system, either through paper, electronic \nmeans or in any other manner, between banks or betw een banks and other system participants; \n(d) such other standards to be complied with the paym ent systems generally; ']"
29,What are the obligations of an information utility under the Insolvency and Bankruptcy Code?,"An information utility must create and store financial information in a universally accessible format, accept electronic submissions of financial information, meet minimum service quality standards, authenticate information received from various persons, provide access to financial information, publish statistical information, and have inter-operatability with other information utilities.",,"[' \n \n \n131 \n \n \n other field, as it deems fit.  \n208. Functions and obligations of insolvency professionals. –  \n (1) Where any insolvency resolution, fresh start, liquidatio n or bankruptcy process has \nbeen initiated, it shall be the function of an insolvency professional to take such actions as may \nbe necessary, in the following matters, namely: – \n(a) a fresh start order process under Chapter II of Part III;  \n(b) individual i nsolvency resolution process under Chapter III of Part III  \n(c)  corporate insolvency resolution process under Chapter II of Part II.  \n(d) individual bankruptcy process under Chapter IV of Part III; and  \n(e) liquidation of a corporate debtor firm under Chapte r III of Part II.  \n(2) Every insolvency professional shall abide by the following code of conduct: – \n(a)  to take reasonable care and diligence while performing his duties;  \n(b) to comply with all requirements and terms and conditions specified in the bye-\nlaws of the insolvency professional agency of which he is a member;  \n(c) to allow the insolvency professional agency to inspect his records;  \n (d)to submit a copy of the records of every proceeding before the Adjudicating \nAuthority to the Board as well as to the insolvency professional agency of which he is \na member; and  \n(e)   to perform his functions in such manner and subject to such conditions as may \nbe specified.  \nCHAPTER V  \nINFORMATION UTILITIES  \n209. No person to function as information utility withou t certificate of registration. – \nSave as otherwise provided in this Code, no information utility shall carry on its \nbusiness under this Code  except under and in accordance with a certificate of registration issued \nin that behalf by the Board.  \n210. Registra tion of information utility. –  \n (1) Every application for registration shall be made to the Board in such form and \nmanner, containing such particulars, and accompanied by such fee, as may be specified by \nregulations:  \nProvided that every application received by the Board shall be acknowledged within \nseven days of its receipt.    \n \n \n132 \n \n \n (2) On receipt of the application under sub -section (1), the Board may, on being \nsatisfied that the application conforms with all requirements speci fied under sub -section (1), \ngrant a certificate of registration to the applicant or else, reject, by order, such application.  \n(3) The Board may issue a certificate of registration to the applicant in such form and \nmanner and subject to such terms and condition s as may be specified.  \n(4) The Board may renew the certificate of registration from time to time in such \nmanner and on payment of such fee as may be specified by regulations.  \n(5) The Board may, by order, suspend or cancel the certificate of registration granted \nto an information utility on any of the following grounds, namely: – \n(a) that it has obtained registration by making a false statement or misrepresentation \nor any other unlawful means;  \n(b) that it has failed to comply with the requirements of the regulations  made by \nthe Board;  \n(c) that it has contravened any of the provisions of the Act or the rules or the \nregulations made thereunder;  \n(d) on any other ground as may be specified by regulations:  \n Provided that no order shall be made under this sub -section unles s the information \nutility concerned has been given a reasonable opportunity of being heard:  \n Provided further that no such order shall be passed by any member except whole -time \nmembers of the Board.  \n \n211. Appeal to National Company Law Appellate Tribunal. –  \n Any information utility which is aggrieved by the order of the Board made under \nsection 210 may prefer an appeal to the National Company Law Appellate Tribunal in such \nform, within such period, and in such manner, as may be specified by regulations.  \n212. Governing Board of information utility. –   \n The Board may, for ensuring that an informat ion utility takes into account the objectives \nsought to be achieved under this Code, require every information utility to set up a governing \nboard, with such number of independent members, as may be specified by regulations.  \n213. Core services, etc. of inf ormation utilities. –   \n An information utility shall provide such services as may be specified including core \nservices to any person if such person complies with the terms and conditions as may be \nspecified by regulations.  \n214. Obligations of information utility. –   \n \n \n133 \n \n \n  For the purposes of  providing core services to any person, every information utility \nshall – \n(a) create and store financial information in a universally accessible format;  \n(b) accept electronic submissions of financial information from persons  who are \nunder obligations to submit financial information under sub -section (1) of section 215, \nin such form and manner as may be specified by regulations;  \n(c) accept, in specified form and manner, electronic submissions of financial \ninformation from persons who intend to submit such information;  \n(d) meet such minimum service quality standards as may be specified by \nregulations;  \n(e)get the information received from various persons authenticated by all \nconcerned parties before storing such information;  \n (f) provide access to the financial information stored by it to any person who \nintends to access such information in such manner as may be specified by regulations;  \n(g) publish such statistical information as may be specified by  regulations.  \n(h) have inter -operatability with other information utilities . \n215. Procedure for submission, etc. of financial information. –  \n (1) Any person who intends to submit financial information to the information utility \nor access the information f rom the information utility shall pay such fee and submit information \nin such form and manner as may be specified by regulations.  \n(2) A financial creditor shall submit financial information and information relating to \nassets in relation to which any security interest has been created, in such form and manner as \nmay be specified by regulations.  \n(3)  An operational creditor may submit financial information to the information utility \nin such form and manner as may be specified.  \n216. Rights and obligations of persons submitting financial information. -  \n(1) A person who intends to update or modify or rectify errors in the financial \ninformation submitted under section 215, he may make an application to the information utility \nfor such purpose stating reasons therefor, i n such manner and within such time, as may be \nspecified   \n(2) A person who submits financial information to an information utility shall not \nprovide such information to any other person, except to such extent, under such circumstances, \nand in such manner, a s may be specified.  \nCHAPTER VI   \n \n \n134 \n \n \n INSPECTION AND INVESTIGATION  \n217. Complaints against insolvency professional agency or its member or information \nutility. -   \n Any person aggrieved by the functioning of an insolvency professional agency or \ninsolvency professional or an information utility may file a complaint to the Board in such \nform, within such time and in such manner as may be specified.  \n218. Investigation o f insolvency professional agency or its member or information utility. \n- \n  (1)  Where the Board, on receipt of a complaint under section 217 or has reasonable \ngrounds to believe  that any insolvency professional agency or insolvency professional or an \ninformation utility has contravened any of the provisions of the Code  or the rules or regulations \nmade or directions issued by the Board thereunder, it may, at any time by an order in writing, \ndirect any person or persons to act as an investigating authority to conduct an inspection or \ninvestigation of the insolvency professional agency or insolvency professional or an \ninformation utility.  \n (2) The inspection or investigation carried out under sub -section (1) of this section shall \nbe conducted within such time  and in such manner as may be specified by regulations.  \n (3)    The Investigating Authority may, in the course of such inspection or investigation, \nrequire any other person who is likely to have any relevant document, record or information to \nfurnish the s ame, and such person shall be bound to furnish such document, record or \ninformation:  \n           Provided that the Investigating Authority shall provide detailed reasons to such person \nbefore requiring him to furnish such document, record or information.  \n(4) The Investigating Authority may, in the course of its inspection or investigation, \nenter any building or place where they may have reasons to believe that any such document, \nrecord or information relating to the subject -matter of the inquiry may be found and  may seize \nany such document, record or information or take extracts or copies therefrom, subject to the \nprovisions of section 100 of the Code of Criminal Procedure, 1973, insofar as they may be \napplicable.  \n(5) The Investigating Authority shall keep in its custody the books, registers, other \ndocuments and records seized under this section for such period not later than the conclusion \nof the investigation as it considers necessary and thereafter shall return the same to the \nconcerned person from whose custody  or power they were seized:  \nProvided that the Investigating Authority may, before returning such books, registers, \nother documents and record as aforesaid, place identification marks on them or any part thereof.  \n(6) A detailed report of inspection or investiga tion shall be submitted to the Board ']"
30,"What is the provision for micro, small and medium enterprises under this Code?","The Central Government may, by notification, direct that any of the provisions of this Code shall not apply to micro, small and medium enterprises, or apply to them with such modifications as may be specified in the notification.",,"[' \n \n \n150 \n \n \n direct that any of the provisions of this Code shall— \n(a) not apply to micro, small and medium enterprises; or  \n(b) apply to micro, small and medium enterprises, with such modifications as may be     \nspecified in the notification.  \n (3) A draft of every notification proposed to be issued under sub section (2), shall be laid \nbefore each House of Parliament, while it i s in session, for a total period of thirty days which may \nbe comprised in one session or in two or more successive sessions.  \n (4) If both Houses agree in disapproving the issue of notification or both Houses agree in \nmaking any modification in the notification, the notification shall not be issued or shall be issued \nonly in such modified form as may be agreed upon by both the Houses,  as the case may be.  \n(5) The period of thirty days referred to in sub -section (3) shall not include any period during \nwhich the House referred to in sub-section (4) is prorogued or adjourned for more than four consecutive \ndays.  \n(6) Every notification issued under this section shall be laid, as soon as may be after it is \nissued, before each House of Parliament.  \nExplanation. — For the purposes of this section, the expression ""micro, small and medium \nenterprises"" means any class or class es of enterprises classified as such under sub -section (1) of \nsection 7 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006). ] \n241. Rules and Regulations to be laid before Parliament. – \n  Every rule and every regulation made under this Code shall be laid, as soon as may be \nafter it is made, before each House of Parliament, while it is in session, for a total period of \nthirty days which may be comprised in one session or in two or more successive sessions, and \nif, before the ex piry of the session immediately following the session or the successive sessions \naforesaid, both Houses agree in making any modification in the rule or regulation or both \nHouses agree that the rule or regulation should not be made, the rule or regulation s hall \nthereafter have effect only in such modified form or be of no effect, as the case may be; so, \nhowever, that any such modification or annulment shall be without prejudice to the validity of \nanything previously done under that rule or regulation.  \n \n \n242. Power to remove difficulties. -  \n (1) If any difficulty arises in giving effect to the provisions of this Code, the Central \nGovernment may, by order, published in the Official Gazette, make such provisions not \ninconsistent with the provisions of this Code  as may appear to be necessary for removing the \ndifficulty:   \n \n \n151 \n \n \n  Provided that no order shall be made under this section after the expiry of five years \nfrom the commencement of this Code.  \n (2) Every order made under this section shall be laid, as soon as may b e after it is made, \nbefore each House of Parliament.  \n243. Repeal of certain enactments and savings. – \n  (1)   The Presidency Towns Insolvency Act, 1909  (3 of 1909)  and the Provincial \nInsolvency Act, 1920  (5 of 1920)  are hereby repealed.  \n(2) Notwithstanding the repeal under sub -sections (1) -   \n(i) all proceedings pending under and relating to the Presidency Towns Insolvency \nAct 1909, and the Provincial Insolvency Act 1920 immediately before the \ncommencement of this Code shall continue to be governed under the aforementioned \nActs and be heard and disposed of by the concerned courts or tribunals, as if the \naforementioned Acts have not been repealed;  \n(ii)  any order, rule, notification, regulation, appointment, conveyance, mortga ge, \ndeed, document or agreement made, fee directed, resolution passed, direction given, \nproceeding taken, instrument executed or issued, or thing done under or in pursuance \nof any repealed enactment shall, if in force at the commencement of this Code, cont inue \nto be in force, and shall have effect as if the aforementioned Acts have not been \nrepealed;  \n(iii) anything done or any action taken or purported to have been done or taken, \nincluding any rule, notification, inspection, order or notice made or issued or any \nappointment or declaration made or any operation undertaken or any direction given or \nany proceeding taken or any penalty, punishment, forfeiture or fine imposed under the \nrepealed enactments shall be deemed valid;  \n(iv) any principle or rule of law, or establi shed jurisdiction, form or course of \npleading, practice or procedure or existing usage, custom, privilege, restriction or \nexemption shall not be affected, notwithstanding that the same respectively may have \nbeen in any manner affirmed or recognised or deri ved by, in, or from, the repealed \nenactments;  \n(v) any prosecution instituted under the repealed enactments and pending \nimmediately before the commencement of this Code before any court or tribunal shall, \nsubject to the provisions of this Code, continue to be heard and disposed of by the \nconcerned court or tribunal;  \n(vi) any person appointed to any office under or by virtue of any repealed \nenactment shall continue to hold such office until such time as may be prescribed; and   \n \n \n152 \n \n \n (vii)  any jurisdiction, custom, liability, right, title, privilege, restriction, exemption, \nusage, practice, procedure or other matter or thing not in existence or in force shall not \nbe revised or restored.  \n(3) The mention of particular matters in sub -section ( 2) shall not be held to prejudi ce \nthe general application of section 6 of the General Clauses Act, 1897  (10 of 1897)  with regard \nto the effect of repeal of the repealed enactments or provisions of the enactments mentioned in \nthe Schedule.   \n244. Transitional provisions. –  \n (1) Until the  Board is constituted or a financial sector regulator is designated under \nsection 195, as the case may be, the powers and functions of the Board or such designated \nfinancial sector regulator, including its power to make regulations, shall be exercised by t he \nCentral Government.  \n   (2) Without prejudice to the generality of the power under sub -section (1), the Central \nGovernment may by regulations provide for the following matters: -  \n(a) recognition of persons, categories of professionals and persons havin g such \nqualifications and experience in the field of finance, law, management or insolvency as \nit deems necessary, as insolvency professionals and insolvency professional agencies \nunder this Code;  \n(b) recognition of persons with technological, statistical,  and data protection \ncapability as it deems necessary, as information utilities under this Code; and  \n(c) conduct of the corporate insolvency resolution process, insolvency resolution \nprocess, liquidation process, fresh start process and bankruptcy process under this Code.   \n245. Amendments of Act 9 of 1932. - \n The Indian Partnership Act, 1932 shall be amended in the manner specified in the \nFirst Schedule.  \n246. Amendments of Act 1 of 19 44.- \n The Central Excise Act, 1944 shall be amended in the manner specified in the Second \nSchedule.  \n 247. Amendments of Act 43 of 1961. - \n The Income – Tax Act, 1961 shall be amended in the manner specified in the Third \nSchedule.  \n248. Amendments of Act 52 of 1962. - \n The Customs Act, 1962 shall be amended in the manner spe cified in the Fourth \nSchedule.   \n \n \n153 \n \n \n 249. Amendments of Act 51 of 1993. - \n The Recovery of Debts due to Banks and Financial Institutions Act, 1993 shall be \namended in the manner specified in the Fifth Schedule.  \n250. Amendments of Act 32 of 1994. - \n The Finance Ac t, 1994 shall be amended in the manner specified in the Sixth Schedule.  \n251.  Amendments of Act 54 of 2002. - \n The Securitisation and Reconstruction of Financial Assets and Enforcement of Security \nInterest Act, 2002 shall be amended in the manner specified in the Seventh Schedule.  \n252. Amendments of Act 1of 2004. - \n The Sick Industrial Companies (Special Provisions) Repeal Act, 2003 shall be amended \nin the manner specified in the Eighth Schedule.  \n253. Amendments of Act 51of 2007. - \n The Payment and Settlement Systems Act, 2007 shall be amended in the manner \nspecified in the Ninth Schedule.  \n254. Amendments of Act 6 of 2009. -  \n The Limited Liability Partnership Act, 2008 shall be amended in the manner specified \nin the Tenth Schedule.  \n255. Amendments of Act 18 of 2013. - \n The Companies Act, 2013 shall be amended in the manner specified in the Eleventh \nSchedule.  \n \n \n \n \n \n \n \n \n \n \n ']"
31,What is the form and manner of preparing the budget by the Board under section 228?,The form and manner of preparing the budget by the Board under section 228 shall be as specified by the Insolvency and Bankruptcy Board of India.,,"["" \n \n \n142 \n \n \n  (b) other accounting standards which shall be a financial debt under clause (d) \nof sub -section (8) of section 5;  \n (c) the form, the manner and the fee for making application bef ore the \nAdjudicating Authority for initiating corporate insolvency resolution process by \nfinancial creditor under sub -section (2) of section 7;  \n (d) the form and manner in which demand notice may be made and the manner \nof delivery thereof to the corporate debtor under sub -section (1) of section 8;  \n (e) the form, the manner and the fee for making application before the \nAdjudicating Authority for initiating corporate insolvency resolution process by \noperational creditor under sub -section (2) of section 9;  \n 1[(ea) other proof confirming that there is no payment of an unpaid operational debt by \nthe corporate debtor or such other information under clause (e) of sub -section (3) of section \n9;] \n (f) the form, the manner and the fee for making application before the  \nAdjudicating Authority for initiating corporate insolvency resolution process by \ncorporate applicant under sub -section (2) of section 10;  \n2[(fa) the transactions under the second proviso to sub -section (2) of section 21;  \n(fb) the transactions under the Explanation I to clause (c) of section 29A;  \n(fc) the transactions under the second proviso to clause (j) of section 29A. ] \n (g) the persons who shall be relative under clause (ii) of the Explanation to sub -\nsection (1) of section 79;  \n (h) the value of un encumbered single dwelling unit owned by the debtor under \nclause (e) of sub -section (13) of section 79;  \n (i) the value under clause (c), and any other debt under clause (f), of sub -section \n(14) of section 79;  \n (j) the form, the manner and the fee for makin g application for fresh start order \nunder sub -section (3) of section 81;  \n (k) the particulars of the debtor's personal details under clause (e) of sub -section \n(3) of section 81;  \n (l) the information and documents to support application under sub -section (3 ) \nof section 86;  \n (m) the form, the manner and the fee for making application for initiating the \n \n1 Ins. by Act No. 26 of 2018, sec 35 (w.e.f.  6-6-2018).  \n2 Ins. by Act No. 1 of 2020 , sec. 12 (w.e.f. 28 -12-2019).   \n \n \n143 \n \n \n insolvency resolution process by the debtor under sub -section (6) of section 94;  \n (n) the form, the manner and the fee for making application for initiating th e \ninsolvency resolution process by the creditor under sub -section (6) of section 95;  \n (o) the particulars to be provided by the creditor to the resolution professional \nunder sub -section (2) of section 103;  \n (p) the form and the manner for making application for bankruptcy by the debtor \nunder clause (b) of sub -section (1) of section 122;  \n (q) the form and the manner of the statement of affairs of the debtor under sub -\nsection (3) of section 122;  \n (r) the other information under clause (d) of sub -section (1) of section 123;  \n (s) the form, the manner and the fee for making application for bankruptcy under \nsub-section (6) of section 123;  \n (t) the form and the manner in which statement of financial position shall be \nsubmitted under sub -section (2) of sec tion 129;  \n (u) the matters and the details which shall be included in the public notice under \nsub-section (2) of section 130;  \n (v) the matters and the details which shall be included in the notice to the \ncreditors under sub -section (3) of section 130;  \n (w) the manner of sending details of the claims to the bankruptcy trustee and \nother information under sub -sections (1) and (2) of section 131;  \n (x) the value of financial or commercial transaction under clause (d) of sub -\nsection (1) of section 141;  \n (y) the o ther things to be done by a bankrupt to assist bankruptcy trustee in \ncarrying out his functions under clause (d) of sub -section (1) of section 150;  \n (z) the manner of dealing with the surplus under sub -section (4) of section 170;  \n (za) the form and the man ner of proof of debt under clause (c) of sub -section \n(2) of section 171;  \n (zb) the manner of receiving dividends under sub -section (7) of section 171;  \n (zc) the particulars which the notice shall contain under sub -section (2) of \nsection 176;  \n (zd) the sala ries and allowances payable to, and other terms and conditions of \nservice of, the Chairperson and members of the Board under sub -section (5) of section \n189;  \n \n \n144 \n \n \n  (ze) the other functions of the Board under clause (u) of sub -section (1) of \nsection 196;  \n (zf) the other funds under clause (c) of sub -section (1) of section 222;  \n (zg) the other purposes for which the fund shall be applied under clause (d) of \nsub-section (2) of section 222;  \n (zh) the form in which annual statement of accounts shall be prepared unde r \nsub-section (1) of section 223;  \n (zi) the purpose for which application for withdrawal of funds may be made \nunder sub -section (3) of section 224;  \n (zj) the manner of administering the fund under sub -section (4) of section 224;  \n (zk) the manner of conduct ing insolvency and liquidation proceedings under \nsection 227;  \n (zl) the form and the time for preparing budget by the Board under section 228;  \n (zm) the form and the time for preparing annual report under sub -section (1) of \nsection 229;  \n (zn) the time up to which a person appointed to any office shall continue to hold \nsuch office under clause (vi) of sub -section (2) of section 243.  \n240. Power to make regulations. – \n (1) The Board may, by notification, make regulations consistent with this Code and the \nrules made thereunder, to carry out the provisions of this Code.  \n (2) In particular, and without prejudice to the generality of the foregoing power, such \nregulations may provide for all or any of the following matters, namely: — \n(a) the form and the manner of accepting electronic submission of financial \ninformation under sub -clause (a) of clause (9) of section 3;  \n(b) the persons to whom access to information stored with the information utility \nmay be provided under sub -clause (d) of clause (9) of section 3;  \n(c) the other information under sub -clause (f) of clause (13) of section 3;  \n(d) the other costs under clause (e) of sub -section (13) of section 5;  \n(e) the cost incurred by the liquidator during the period of liquidation which shall   \nbe liquidation cost under  sub-section (16) of section 5;  \n(f) the other record or evidence of default under clause (a), and any other \ninformation under clause (c), of sub -section (3) of section 7;   \n \n \n145 \n \n \n  1[(g) *                        *                        *                          ] \n  (h) the period under clause (a) of sub -section (3) of section 10;  \n(i) the supply of essential goods or services to the corporate debtor under sub -\nsection (2) of section 14;  \n2[(ia) circumstances in which supply of critical goods or services may be \nterminated, suspended or interrupted during the period of moratorium under sub -section \n(2A) of section 14;]  \n(j) the manner of making public announcement under sub -section (2) of section 15;  \n3[(ja) the last date for submission of claims under clause (c) of sub-section (1) of section \n15;] \n(k) the manner of taking action and the restrictions thereof under clause (b) of    \n            sub-section (2) of section 17;  \n(l) the other persons under clause (d) of sub -section (2) of section 17;  \n(m) the other matters under clause (d) of sub -section (2) of section 17;  \n(n) the other matters under sub -clause (iv) of clause (a), and the other duties to be \nperformed by the interim resolution professional under clause (g), of section 18;  \n4[(na)  the number of credito rs within a class of creditors under clause (b) of sub -section \n(6A) of section 21;  \n(nb) the remuneration payable to authorised representative under clause (ii) of the \nproviso to sub -section (6B) of section 21;  \n(nc) the manner of voting and determining the voting share in respect of financial \ndebts under sub -section (7) of section 21;]  \n(o) the persons who shall comprise the committee of creditors, the functions to be \nexercised such committee and the manner in which fu nctions shall be exercised under \nthe proviso to sub -section (8) of section 21;  \n(p) the other electronic means by which the members of the committee of creditors \nmay meet under sub -section (1) of section 24;  \n(q) the manner of assigning voting share to each creditor under sub -section (7) of \nsection 24;  \n \n1 Omitted by Act No. 26 of 2018, sec. 36 (i) (w.e.f.  6-6-2018). Before omission, it stood as “(g) the other \ninformation under clause (d) of sub -section (3) of section 7;”  \n2 Ins. by Act No. 1 of 2020 , sec. 13 (w.e.f. 28 -12-2019).  \n3 Ins. by Act No. 26 of 2018, sec. 36 (ii) (w.e.f.  6-6-2018).  \n4 Ins. by Act No. 26 of 2018 , sec 36 (iii) (w.e.f. 6 -6-2018).  ""]"
32,What is the punishment for non-disclosure of dispute or payment of debt by an operational creditor?,"Imprisonment for a term which shall not be less than one year but may extend to five years or with fine which shall not be less than one lakh rupees but may extend to one crore rupees, or with both.",,"[' \n \n \n67 \n \n \n  he shall be punishable with imprisonme nt for a term which shall not be less than three years, \nbut may extend to five years or with fine which shall not be less than one lakh r upees, but \nmay extend to one crore rupees, or with both.  \n74. Punishment for contravention of moratorium or the resoluti on plan . - \n (1)  Where the corporate debtor or any of its officer violates the provisions of section \n14, any such officer who knowingly or wilfully committed or authorised or permitted such \ncontravention shall be punishable with imprisonment for a term whi ch shall not be less than \nthree years,  but may extend to five years or with fine which shall not be less than one lakh \nrupees, but may extend to three lakh  rupees, or with both.  \n (2) Where any creditor violates the provisions of section 14, any person who knowingly \nand wilfully authorised or permitted such contravention by a creditor shall be punishable with \nimprisonment for a term which shall not be less than one year, but may extend to five years, \nor with fine which shall not be less than one lakh rupees,  but may extend to one crore rupees, \nor with both.  \n(3) Where the corporate debtor, any of its officers or creditors or any person on whom \nthe approved resolution  plan is binding under section 31, knowingly and wilfully contravenes \nany of the terms of such  resolution plan or abets such contravention, such corporate debtor, \nofficer, creditor or person shall be punishable with imprisonment of not less than one year, \nbut may extend to five years, or with fine which shall not be less than one lakh rupees, but \nmay extend to one crore rupees, or with both.  \n75.  Punishment for false information furnished in application.  - \n Where any person furnishes information in the application made under section \n7, which is false in material particulars, knowing it to be false or omits any material fact, \nknowing it to be material, such person shall be punishable with fine which shall not be less \nthan one lakh rupees, but may extend to one crore rupees.  \n76. Punishment for non -disclosure of dispute or 1[payment ] of debt by operational \ncreditor. - \n  Where - \n(a)   an operational creditor has wilfully or knowingly concealed in an application \nunder section 9 the fact that the corporate debtor had notified him of a dispute in respect \nof the unpaid operational debt or t he full and final 2[payment ] of the unpaid operational \ndebt; or  \n(b) any person who knowingly and wilfully authorised or permitted such \nconcealment under clause (a)  \n \n1 Subs. by Act. No. 26 of 2018, sec. 31(a), for the word “repayment” (w.e.f.  6-6-2018).  \n2 Subs. by Act. No. 26 of 2018, sec. 31(b), for the word “repayment” (w.e.f.  6-6-2018).   \n \n \n68 \n \n \n such operational creditor or person, as the case may be, shall be punishable with imprison ment \nfor a term which shall not be less than one year but may extend to five years or with fine \nwhich shall not be less than one lakh rupees but may extend to one crore rupees, or with both.  \n77. Punishment for providing false information in application mad e by corporate \ndebtor.  - \n Where - \n (a) a corporate debtor provides information in the application under section 10 \nwhich is false in material particulars, knowing it to be false and omits any material fact, \nknowing it to be material; or  \n (b) any person who knowingly and wilfully authorised or permitted the furnishing \nof such information under sub -clause (a)  \nsuch corporate debtor or person, as the case may be, shall be punishable with imprisonment \nfor a term which shall not be less than three  years, but which may extend to five years and \nwith fine which shall not be less than one lakh rupees, but which may extend to one crore \nrupees, or with both.  \nExplanation. – For the purpose of this section and sections 75 and 76, an application \nshall be d eemed to be false in material particulars in case the facts mentioned or omitted in \nthe application, if true, or not omitted from the application as the case may be, would have \nbeen sufficient to determine the existence of a default under this Code.  \n \nPART III \nINSOLVENCY RESOLUTION AND BANKRUPTCY FOR INDIVIDUALS AND \nPARTNERSHIP FIRMS  \nCHAPTER I  \nPRELIMINARY  \n78. Application.  - \n This Part shall apply to matters relating to fresh start, insolvency and bankruptcy of \nindividuals and partnership firms where the amou nt of the default is not less than one \nthousand rupees:  \n  Provided that the Central Government may, by notification, specify the minimum \namount of default of higher value which shall not be more than one lakh rupees.  \n79.   Definitions.  - \n In this Part, unless the context otherwise requires, -  \n  (1) “Adjudicating Authority” means the Debt Recovery Tribunal constituted under sub - \n \n \n69 \n \n \n section (1) of section 3 of the Recovery of Debts Due to Banks and Financial Institution Act, \n1993  (51 of 1993) ; \n(2) “associate” of the debtor means – \n(a) a person who belongs to the immediate family of the debtor;  \n(b) a person who is a relative of the debtor or a re lative of the spouse of the debtor;  \n(c) a person who is in partnership with the debtor;  \n(d) a person who is a spouse or a relative of any person with whom the debtor is in \npartnership;  \n(e) a person who is employer of the debtor or employee of the debtor;  \n(f)  a person who is a trustee of a trust in which the beneficiaries of the trust include \na debtor, or the terms of the trust confer a power on the trustee which may be exercised \nfor the benefit of the debtor; and  \n(g) a company, where the debtor or the debt or along with his associates, own more \nthan fifty per cent. of the share capital of the company or control the appointment of the \nboard of directors of the company.  \nExplanation. - For the purposes of this sub -section, “relative”, with reference to any \nperson, means anyone who is related to another, if - \n(i) they are members of a Hindu Undivided Family;  \n(ii) one person is related to the other in such manner as may be prescribed;  \n (3) “bankrupt” means – \n(a) a debtor who has been adjudged as bankrupt by a bankruptcy order under \nsection 126;  \n(b) each of the partners of a firm, where a bankruptcy order under section 126 has \nbeen made against a firm; or  \n(c) any person adjudged as an undischarged insolvent;  \n (4) “bankruptcy” means the state of being bankrupt;  \n (5) “bankruptcy debt”, in relation to a bankrupt, means – \n(a) any debt owed by him as on the bankruptcy commencement date;  \n(b) any debt for which he may become liable after bankruptcy commencement date \nbut before his discharge by reason of any transaction entered into before the bankruptcy \ncommencement date; and  \n(c) any interest which is a part of the debt under section 171;   \n \n \n70 \n \n \n  (6) “bankruptcy commencement date” means the date on which a bankruptcy order is \npassed by the Adjudicating Authority under section 126;  \n (7) “bankruptcy order” means an order passed by an Adjudicating Authority under \nsection 126;  \n (8) “bankruptcy process” means a process against a debtor under Chapters IV and V of \nthis part;  \n (9) “bankruptcy trustee” means the insolvency professional appointed as a trustee for \nthe estate of the bankrupt under section 125;  \n(10) “Chapter” means a chapter under this Part;  \n (11) “committee of creditors” means a committee constituted un der section 134;  \n (12) “debtor” includes a judgment -debtor;  \n (13) “discharge  order” means an order passed by the Adjudicating Authority \ndischarging the debtor under sections 92, 119 and section 138, as the case may be;  \n (14) “excluded  assets” for the purp oses of this part includes – \n (a) unencumbered tools, books, vehicles and other equipment as are necessary to \nthe debtor or bankrupt for his personal use or for the purpose of his employment, \nbusiness or vocation,  \n(b) unencumbered furniture, household equi pment and provisions as are necessary \nfor satisfying the basic domestic needs of the bankrupt and his immediate family;  \n(c) any unencumbered personal ornaments of such value, as may be prescribed, of \nthe debtor or his immediate family which cannot be parted with, in accordance with \nreligious usage;  \n(d) any unencumbered life insurance policy or pension plan taken in the name of \ndebtor or his immediate family; and  \n(e) an unencumbered single dwelling unit owned by the debtor of such value as \nmay be prescr ibed;  \n (15) “excluded debt” means – \n(a) liability to pay fine imposed by a court or tribunal;  \n(b) liability to pay damages for negligence, nuisance or breach of a statutory, \ncontractual or other legal obligation;  \n(c)  liability to pay maintenance to any person under any law for the time \nbeing in force;  \n(d) liability in relation to a student loan;  \n(e) any other debt as may be prescribed;  ']"
33,What is the role of the authorised representative of financial creditors in the committee of creditors?,"The authorised representative of financial creditors shall act on behalf of such financial creditors, attend the meetings of the committee of creditors, and vote on behalf of each financial creditor to the extent of his voting share.",,"[' \n \n \n24 \n \n \n (e) file information collected with the information utility, if necessary; and  \n(f) take control and custody of   any asset over which the corporate debtor has \nownership rights as recorded in the balance sheet of the corporate debtor, or with \ninformation utility or the depository of securities or any other registry that records the \nownership of assets including - \n(i) assets over which the corporate debtor has ownership rights which may be \nlocated in a foreign country;  \n(ii) assets that may or may not be in possession of the corporate debtor;  \n(iii) tangible assets, whether movable or immovable;  \n(iv) intangible assets including intellectual property;  \n(v) securities including shares held in any subsidiary of the corporate debtor, \nfinancial ins truments, insurance policies;  \n(vi) assets subject to the determination of ownership by a court or authority;  \n(g)  to perform such other duties as may be specified by the Board.  \n Explanation. – For the purposes of this 1[section ], the term “assets” shall n ot include \nthe following, namely: - \n(a) assets owned by a third party in possession of the corporate debtor held under \ntrust or under contractual arrangements including bailment;  \n(b) assets of any Indian or foreign subsidiary of the corporate debtor; and  \n(c) such other assets as may be notified by the Central Government in consultation \nwith any financial sector regulator.  \n19. Personnel to extend co -operation to interim resolution professional.  - \n (1) The personnel of the corporate debtor, its promoters or any other person associated \nwith the management of the corporate debtor shall extend all assistance and cooperation \nto the interim resolution professional as may be required by hi m in managing the affairs \nof the corporate debtor.  \n(2) Where any personnel of the corporate debtor, its promoter or any other person \nrequired to assist or cooperate with the interim resolution professional does not assist or \ncooperate, the interim resolut ion professional may make an application to the Adjudicating \nAuthority for necessary directions.  \n(3) The Adjudicating Authority, on receiving an application under sub -section (2), shall \nby an order, direct such personnel or other person to comply with the instructions of the \n \n1 Subs. by Act No. 26 of 2018, sec. 14, for the words “sub -section” (w.e.f.  6-6-2018).   \n \n \n25 \n \n \n resolution professional and to cooperate with him in collection of information and \nmanagement of the corporate debtor.  \n20. Management of operations of corporate debtor as going concern.  - \n  (1) The interim resolution professional shall make every endeavour to protect and \npreserve the value of the property of the corporate debtor and manage the operations of the \ncorporate debtor as a going concern.  \n(2) For the purposes of sub -section (1), the interim resolution professional shall have \nthe authority -  \n(a) to appoint accountants, legal or other professionals as may be necessary;  \n(b) to enter into contracts on behalf of the corporate debtor or to amend or modify \nthe contracts or transactions which were entered into before the commencement of \ncorporate insolvency resolution process;  \n(c) to raise interim finance provided that no secu rity interest shall be created over \nany encumbered property of the corporate debtor without the prior consent of the \ncreditors whose debt is secured over such encumbered property:  \n Provided that no prior consent of the creditor shall be required where the  value of such \nproperty is not less than the amount equivalent to twice the amount of the debt.  \n(d) to issue instructions to personnel of the corporate debtor as may be necessary \nfor keeping the corporate debtor as a going concern; and  \n(e) to take all such  actions as are necessary to keep the corporate debtor as a going \nconcern.  \n21. Committee of creditors.  - \n(1) The interim resolution professional shall after collation of all claims received \nagainst the corporate debtor and determination of the financial position of the corporate \ndebtor, constitute a committee of creditors.  \n (2) The committee of creditors shall comprise all financial creditors of the corporate \ndebtor:  \n         Provided that a 1[financial creditor or the authorised representative  of the financial creditor \nreferred to in sub -section (6) or sub -section (6A) or sub -section (5) of section 24, if it is a related \nparty of the corporate debtor ,] shall not have any right of representation, participation or \nvoting in a meeting of the committee of creditors : \n  2[Provided further that the first proviso shall not apply to a financial creditor, regulated by \n \n1Subs. by Act No. 26 of 2018, sec. 15 (i) (a), for the words “ related party to whom a corporate debtor owes a \nfinancial debt” (w.e.f.  6-6-2018 ). \n2 Ins. by Act No. 26 of 2018, sec. 15 (i) (b) (w.e.f. 6 -6-2018).   \n \n \n26 \n \n \n a financial sector regulator, if it is a rel ated party of the corporate debtor solely on account of \nconversion or substitution of debt into equity shares or instruments convertible into \nequity shares  1[or completion of such transactions as may  be prescribed ], prior to the \ninsolvency commencement date.]  \n  (3) 2[Subject to sub -sections (6) and (6A),  where ] the corporate debtor owes financial \ndebts to two or more financial creditors as part of a consortium or agreement, each such \nfinancial creditor shall be part of the committee of creditors and their voting share shall be \ndetermined on the basis of the financial debts owed to them.  \n        (4) Where any person is a financial creditor as well as an operational creditor, - \n(a) such person shall be a financial creditor to the extent of the financial debt owed \nby the corporate debtor, and shall be included in the committee of creditors, with voting \nshare proportionate to the extent of financial debts owed to such creditor;  \n(b) such person shall be considered to be an operational creditor to the extent of the \noperational debt owed by the corporate debtor to such creditor.  \n  (5) Where an operational creditor has assigned or legally transferred any operational \ndebt to a financ ial creditor, the assignee or transferee shall be considered as an operational \ncreditor to the extent of such assignment or legal transfer.  \n(6)  Where the terms of the financial debt extended as part of a consortium arrangement \nor syndicated facility 3[***] provide for a single trustee or agent to act for all financial \ncreditors, each financial creditor may - \n(a) authorise the trustee or agent to act on his behalf in the committee of creditors \nto the extent of his voting share;  \n(b) represent himself in the  committee of creditors to the extent of his voting share;  \n(c) appoint an insolvency professional (other than the resolution professional) at \nhis own cost to represent himself in the committee of creditors to the extent of his voting \nshare; or  \n(d) exercis e his right to vote to the extent of his voting share with one or more \nfinancial creditors jointly or severally.   \n   4[ (6A) Where a financial debt — \n(a) is in the form of securities or deposits and the terms of the financial debt \nprovide for appointment of a trustee or agent to act as authorised representative for \nall the financial creditors, such trustee or agent shall act on behalf of such \n \n1 Ins. by Act No. 1 of 2020 , sec. 7 (w.e.f. 28 -12-2019).  \n2 Subs. by Act No. 26 of 2018, sec. 15 (ii), for the word “Where” (w.e.f. 6 -6-2018).  \n3 The words “or issued as securities” o mitted by Act. No 26 of 2018, sec. 15 (iii) (w.e.f. 6.6.2018).  \n4 Ins. by Act No. 26 of 2018, sec. 15(iv) (w.e.f.  6-6-2018).   \n \n \n27 \n \n \n financial cred itors;  \n(b) is owed to a class of creditors exceeding the number as may be specified, other \nthan the creditors covered under clause (a) or sub -section (6), the interim resolution \nprofessional shall make an application to the Adjudicating Authority along with th e list \nof all financial creditors, containing the name of an insolvency professional, \nother than the interim resolution professional, to act as their authorised \nrepresentative who shall be appointed by the Adjudicating Authority prior to the first \nmeeting of the committee of creditors;   \n(c) is represented by a guardian, executor or administrator, such person shall act as \nauthorised representative on behalf of such financial creditors,  \nand such authorised representative under clause (a) or clause (b) or clause (c) shall \nattend the meetings of the committee of creditors, and vote on behalf of each \nfinancial creditor to the extent of his voting share.  \n(6B) The remuneration payable to the authorised representative - \n(i)  under clauses (a) and (c) of sub -section (6A), if any, shall be as per the \nterms of the financial debt or the relevant documentation; and  \n(ii) under clause (b) of sub -section (6A) shall be as specified which shall be \nform part of the insolvency resolution process costs.]  \n1[(7) The Board may specify the manner of voting and the determining of the voting \nshare in respect of financial debts covered under sub -sections (6) and (6A).  \n(8) Save as otherwise provided in this Code, all decisions of the committee of creditors \nshall be tak en by a vote of not less than fifty -one per cent. of voting share of the financial \ncreditors:  \nProvided that where a corporate debtor does not have any financial \ncreditors, the committee of creditors shall be constituted and shall comprise \nof such persons to exercise such functions in such manner as may be \nspecified. ] \n(9) The committee of creditors shall have the right to require the \nresolution professional to furnish any financial information in relation to the \ncorporate debtor at any time during the corpo rate insolvency resolution \nprocess.  \n \n1 Subs. by Act No. 26 of 2018, sec . 15 (v) (w.e.f. 6.6.2018), before substitution, the clauses (7) & (8) as under: - \n“(7) The Board may specify the manner of determining the voting share in respect of financial debts issued as \nsecurities under sub -section (6).  \n(8)  All decisions of the committee of creditors shall be taken by a vote of not less than seventy - five per cent. of \nvoting share of the financial creditors:”  ']"
34,What is the role of the Board in relation to the liquidation process?,"The Board has various roles in relation to the liquidation process, including specifying the form and manner of the liquidation estate assets, specifying the fees for the conduct of the liquidation proceedings, and specifying the manner of distribution of proceeds to stakeholders.",,"[' \n \n \n44 \n \n \n section (4).  \n(2) On the appointment of a liquidato r under this section, all powers of the board of \ndirectors, key managerial personnel and the partners of the corporate debtor, as the case may \nbe, shall cease to have effect and shall be vested in the liquidator.  \n(3) The personnel of the corporate debtor s hall extend all assistance and cooperation to \nthe liquidator as may be required by him in managing the affairs of the corporate debtor and \nprovisions of section 19 shall apply in relation to voluntary liquidation process as they apply \nin relation to liquid ation process with the substitution of references to the liquidator for \nreferences to the interim resolution professional.    \n(4) The Adjudicating Authority shall by order replace the resolution professional, if – \n(a) the resolution plan submitted by the re solution professional under section 30 \nwas rejected for failure to meet the requirements mentioned in sub -section (2) of section \n30; or  \n(b) the Board recommends the replacement of a resolution professional to the \nAdjudicating Authority for reasons to be re corded 1[in writing ; or] \n2[(c) the resolution professional fails to submit written consent under sub -section (1).]  \n(5) For the purposes of 3[clause (a)  and clause (c) ] of sub -section (4), the Adjudicating \nAuthority may direct the Board to propose name of another insolvency professional to be \nappointed as a liquidator.  \n(6) The Board shall propose the name of another insolvency professional  4[along  with \nwritten consent from the insolvency professional in the specified form ] within ten days of \nthe direction issued by the Adjudicating Authority under sub -section (5).  \n(7) The Adjudicating Authority shall, on receipt of the proposal of the Board for the \nappointment o f an insolvency professional as liquidator, by an order appoint such \ninsolvency professional as the liquidator.  \n(8) An insolvency professional proposed to be appointed as a liquidator shall charge \nsuch fee for the conduct of the liquidation proceedings and  in such proportion to the value \nof the liquidation estate assets, as may be specified by the Board.  \n(9) The fees for the conduct of the liquidation proceedings under sub -section (8) shall \nbe paid to the liquidator from the proceeds of the liquidation est ate under section 53.  \n35. Powers and duties of liquidator.  - \n \n1 Sub by Act No. 26 of 2018, sec 26(b), for the words “in writing” (w.e.f.  6-6-2018).  \n2 Ins. by Act No 26 of 2018, sec 26(b) (w.e.f.  6-6-2018).  \n3 Subs. by Act No 26 of 2018, sec 2 6 (c), for the words and brackets “clause (a)” (w.e.f.  6-6-2018).  \n4 Ins. by Act No.26 of 2018, sec 26 (d), (w.e.f. 6 -6-2018)   \n \n \n45 \n \n \n   (1) Subject to the directions of the Adjudicating Authority, the liquidator shall have \nthe following powers and duties, namely: -  \n(a) to verify claims of all the creditors;  \n(b) to take into hi s custody or control all the assets, property, effects and actionable \nclaims of the corporate debtor;   \n(c) to evaluate the assets and property of the corporate debtor in the manner as may \nbe specified by the Board and prepare a report;   \n(d) to take such measures to protect and preserve the assets and properties of the \ncorporate debtor as he considers necessary;  \n(e) to carry on the business of the corporate debtor for its beneficial liquidation as \nhe considers necessary;  \n(f)  subject to section 52, to sel l the immovable and movable property and \nactionable claims of the corporate debtor in liquidation by public auction or private \ncontract, with power to transfer such property to any person or body corporate, or to \nsell the same in parcels in such manner as may be specified : \n 1[Provided that the liquidator shall not sell the immovable and movable property or \nactionable claims of the corporate debtor in liquidation to any person who is not eligible to \nbe a resolution applicant.]  \n(g) to draw, accept, make and endorse any negotiable instruments including bill of \nexchange, hundi or promissory note in the name and on behalf of the corporate debtor, \nwith the same effect with respect to the liability as if such instruments were drawn, \naccepted, made or endorsed by or on behalf of the corporate debtor in the ordinary \ncourse of its business;  \n(h)   to take out, in his official name, letter of administration to any deceased \ncontributory and to do in his official name any other act necessary for obtaining \npayment of a ny money due and payable from a contributory or his estate which cannot \nbe ordinarily done in the name of the corporate debtor, and in all such cases, the money \ndue and payable shall, for the purpose of enabling the liquidator to take out the letter of \nadministration or recover the money, be deemed to be due to the liquidator himself;  \n(i)  to obtain any professional assistance from any person or appoint any \nprofessional, in discharge of his duties, obligations and responsibilities;  \n(j)   to invite and settl e claims of creditors and claimants and distribute proceeds in \naccordance with the provisions of this Code;  \n(k) to institute or defend any suit, prosecution or other legal proceedings, civil or \n \n1 Ins. by Act 8 of 2018, sec. 7 (w.r.e.f. 23 -11-2017).   \n \n \n46 \n \n \n criminal, in the name of on behalf of the corporate debtor;  \n (l)  to investigate the financial affairs of the corporate debtor to determine \nundervalued or preferential transactions;  \n(m) to take all such actions, steps, or to sign, execute and verify any paper, deed, \nreceipt document, application, petition, affidavi t, bond or instrument and for such \npurpose to use the common seal, if any, as may be necessary for liquidation, distribution \nof assets and in discharge of his duties and obligations and functions as liquidator;  \n(n) to apply to the Adjudicating Authority f or such orders or directions as may be \nnecessary for the liquidation of the corporate debtor and to report the progress of the \nliquidation process in a manner as may be specified by the Board; and  \n(o)   to perform such other functions as may be specified by the Board.  \n(2) The liquidator shall have the power to consult any of the stakeholders entitled to a \ndistribution of proceeds under section 53:  \nProvided  that any such consultation shall not be binding on the liquidator:  \nProvided  further that the records  of any such consultation shall be made available to all \nother stakeholders not so consulted, in a manner specified by the Board.  \n36.  Liquidation estate.  - \n (1) For the purposes of liquidation, the liquidator shall form an estate of the assets \nmentioned in sub -section (3), which will be called the liquidation estate in relation to the \ncorporate debtor.  \n(2)  The liquidator shall hold the liquidation estate as a fiduciary for the benefit of \nall the creditors.  \n(3)  Subject to sub -section (4), the liquidation estate shall comprise all liquidation \nestate assets which shall include the following: - \n (a) any assets over which the corporate debtor has ownership rights, including all \nrights and interests therein as evidenced in the balance sheet of the corporate debtor or \nan information utility or records in the registry or any depository recording securities \nof the corporate debtor or by any other means as may be specifi ed by the Board, \nincluding shares held in any subsidiary of the corporate debtor;  \n(b) assets that may or may not be in possession of the corporate debtor including \nbut not limited to encumbered assets;  \n(c) tangible assets, whether movable or immovable;  \n(d) intangible assets including but not limited to intellectual property, securities \n(including shares held in a subsidiary of the corporate debtor) and financial instruments, \ninsurance policies, contractual rights;   \n \n \n47 \n \n \n (e)   assets subject to the determination of ownership by the court or authority;  \n(f) any assets or their value recovered through proceedings for avoidance of \ntransactions in accordance with this Chapter;  \n(g) any asset of the corporate debtor in respect of which a secured creditor has \nrelinquished  security interest;  \n(h) any other property belonging to or vested in the corporate debtor at the \ninsolvency commencement date; and  \n(i) all proceeds of liquidation as and when they are realised.  \n(4)  The following shall not be included in the liquidation e state assets and shall not \nbe used for recovery in the liquidation: -  \n(a) assets owned by a third party which are in possession of the corporate debtor, \nincluding - \n(i) assets held in trust for any third party;  \n(ii) bailment contracts;  \n(iii) all sums due  to any workmen or employee from the provident fund, the \npension fund and the gratuity fund;  \n(iv) other contractual arrangements which do not stipulate transfer of title but \nonly use of the assets; and  \n(v) such other assets as may be notified by the Centr al Government in \nconsultation with any financial sector regulator;  \n(b) assets in security collateral held by financial services providers and are subject \nto netting and set -off in multi -lateral trading or clearing transactions;  \n(c) personal assets of any shareholder or partner of a corporate debtor as the case \nmay be provided such assets are not held on account of avoidance transactions that may \nbe avoided under this Chapter;  \n(d) assets of any Indian or foreign subsidiary of the corporate debtor; or  \n(e) any other assets as may be specified by  the Board, including assets which could \nbe subject to set -off on account of mutual dealings between the corporate debtor and \nany creditor.  \n37. Powers of liquidator to access information. - \n (1) Notwithstanding anyt hing contained in any other law for the time being in force, \nthe liquidator shall have the power to access any information systems for the purpose of \nadmission and proof of claims and identification of the liquidation estate assets relating to \nthe corporat e debtor from the following sources, namely: - ']"
35,"What is the amendment made to the Central Excise Act, 1944 in the given document?","In section 11E, the words, figures and brackets “and the Securitisation and Reconstruction of Financial Assets and the Enforcement of Security Interest Act, 2002 (54 of 2002)” shall be substituted with “the Securitisation and Reconstruction of Financial Assets and the Enforcement of Security Interest Act, 2002 (54 of 2002) and the Insolvency and Bankruptcy Code, 2016”.",,"[' \n \n \n154 \n \n \n  \nTHE FIRST SCHEDULE  \n(See section 245)   \n \nAMENDMENT TO THE INDIAN PARTNERSHIP ACT, 1932  \n(9 of 1932)  \n  1. In section 41, clause (a) shall be omitted.  \n \nTHE SECOND SCHEDULE  \n(See section 246)  \n \nAMENDMENT TO THE CENTRAL EXCISE ACT, 1944  \n(1 of 1944)  \n1 In section 11E, for the words, figures and brackets “and the Securitisation and \nReconstruction of Financial Assets and the Enforcement of Security Interest Act, 2002 \n(54 of 2002)”, the words, figures and brackets “the Securitisation and Reconstruction \nof Financial Assets and the Enforcement of Security Interest Act, 2002 (54 of 2002) \nand the Insolvency and Bankruptcy Code,  2016” shall be substituted.  \n \nTHE THIRD SCHEDULE  \n(See section 247)  \n \nAMENDMENT TO THE INCOME -TAX ACT, 1961  \n(43 f 1961)  \n1.In sub -section (6) of section 178, after the words “for the time being in force”, \nthe words and figures “except the provisions of the Insolvency and Bankruptcy Code, \n2016” shall be inserted.  \n \nTHE FOURTH SCHEDULE  \n(See section 248)  \n \nAMENDMENT TO THE CUSTOMS ACT, 1962   \n \n \n155 \n \n \n (52 of 1 962) \n1.In section 142A, for the words and figures “and the Securitisation and \nReconstruction of Financial Assets and the Enforcement of Security Interest Act, 2002  \n(54 of 2002) ”, the words and figures “the Securitisation and Reconstruction of Financial \nAssets and the Enforcement of Security Interest Act, 2002 and the Insolvency and \nBankruptcy Code, 2016”  shall be substituted.  \n \nTHE FIFTH SCHEDULE  \n(See section 249)  \n \nAMENDMENT TO RECOVERY OF DEBTS DUE TO BANKS AND FINANCIAL \nINSTITUTIONS ACT, 1993  \n(51 of 1993)  \n 1. In the long title, after the words “financial institutions”, the words “, \ninsolvency resolution and bankruptcy of individuals and partnership firms” shall be \ninserted, namely: -. \n \n2. In section 1, –  \n \n(a) in sub -section (1), for the words “Due to Banks and Financial \nInstitutions” the words “and Bankruptcy” shall be substituted;  \n \n(b) in sub -section (4), for the words “The provision of this Code”, the \nwords “Save as otherwise provided, the provisions of this Code”, shall be \nsubstituted.  \n \n3. In section 3, after sub -section (1), the following sub -section shall be inserted, \nnamely: -  \n \n“(1A) The Central Government shall by notification establish such \nnumber of Debts Recovery Tribunals and its benches as it may consider \nnecessary, to exercise the jurisdiction, powers and authority of the Adjudicating \nAuthority conferred on such Tribunal by or under the Insolvency and \nBankruptcy Code, 2016”.  \n \n4. In section 8, after sub -section (1), the following section shall be inserted, \nnamely: - \n \n “(1A) The Central Government shall, by notification, establish such \nnumber of Debt Recovery Appellate Tribunals to exercise jurisdiction, powers \nand authority to entertain appeal against the order made by the Adjudicating  \n \n \n156 \n \n \n Authority under Part III of the Inso lvency and Bankruptcy Code, 2016”.  \n \n5. In section 17, - \n \n  (i) after sub -section (1), the following sub -section shall be inserted, \nnamely: -  \n \n   “(1A) Without prejudice to sub -section (1), – \n \n(a) the Tribunal shall exercise, on and from the date to be \nappointed by the Central Government, the jurisdiction, powers and \nauthority to entertain and decide applications under Part III of \nInsolvency and Bankruptcy Code, 2016.  \n \n(b) the Tribunal shall have circuit sittings in all district \nheadquarters.”  \n \n(ii) aft er sub -section (2), the following sub -section shall be inserted, \nnamely: - \n“(2A) Without prejudice to sub -section (2), the Appellate \nTribunal shall exercise, on and from the date to be appointed by the \nCentral Government, the jurisdiction, powers and autho rity to entertain \nappeals against the order made by the Adjudicating Authority under Part \nIII of the Insolvency and Bankruptcy Code, 2016.”  \n \n6. After section 19, the following section shall be inserted, namely: – \n  “19A. The application made to Tribunal for exercising the powers of the \nAdjudicating Authority under the Insolvency and Bankruptcy Code, 2016 shall \nbe dealt with in the manner as provided under that Code”.  \n \n7. In section 20, in sub -section (4), after the word, brackets and figure “sub -\nsection (1)”, the words, brackets and figures “or under sub -section (1) of section 181 of \nthe Insolvency and Bankruptcy Code, 2016” shall be inserted.  \n \nTHE SIXTH SCHEDULE  \n(See section 250)  \n \nAMENDMENT TO THE FINANC E ACT, 1994  \n(32 of 1994)   \n \n \n157 \n \n \n In section 88, for the words and figures “and the Securitisation and \nReconstruction of Financial Assets and the Enforcement of Security Interest Act, 2002  \n(54 of 2002) ”, the words and figures “the Securitisation and Reconstruction of Financial \nAssets and the Enforcement of Security Interest Act, 2002 and the Insolvency and \nBankruptcy Code, 2016” shall be substituted.  \n \n \n \n \nTHE SEVENTH SCHEDULE  \n(See section 251)  \n \nAMENDMENT  TO THE  SECURITIZATION  AND  RECONSTRUCTION  OF FINANCIAL  \nASSETS  AND  ENFORCEMENT  OF SECURITY  INTEREST  ACT,  2002  \n(54 of 2002)  \nIn section 13, in sub -section (9), for the words “In the case of”, the words and \nfigures “Subject to the provisions of the Insolvency and Bankruptcy Code, 20 16, in the \ncase of” shall be sub stituted.  \n \nTHE EIGHTH SCHEDULE  \n(See section 252)  \nAMENDMENT TO SICK INDUSTRIAL COMPANIES (SPECIAL PROVISIONS) \nREPEAL ACT, 2003  \n \n(1 of 2004)  \nIn section 4, for sub -clause (b), the following sub -clause shall be substituted, namely —   \n     \n"" (b) On such date as may be notified by the Central Government in \nthis behalf, any appeal preferred to the Appellate Authority or any reference made or \ninquiry pending to or before the Board or any proceeding of whatever nature pending \nbefore the Appellate Aut hority or the Board under the Sick Industrial Companies \n(Special Provisions) Act,1985 (1 of 1986) shall stand abated:  \n \nProvided that a company in respect of which such appeal or reference or inquiry \nstands abated under this clause may make reference to th e National Company Law \nTribunal under the Insolvency and Bankruptcy Code, 2016 within one hundred and \neighty days from the commencement of the Insolvency and Bankruptcy Code, 2016 in \naccordance with the provisions of the Insolvency and Bankruptcy Code, 201 6:  \n  \n \n \n158 \n \n \n Provided further that no fees shall be payable for making such reference under \nInsolvency and Bankruptcy Code, 2016 by a company whose appeal or reference or \ninquiry stands abated under this clause."".  \n \n \n \n \n \n \n \n \n \n \nTHE NINTH SCHEDULE  \n(See section 253)  \nAMENDMENT TO PAYMENT AND SETTLEMENT SYSTEMS ACT, 2007  \n(51 of 2007)  \n \n1. In section 23, in sub -section (4), (5) and (6), after the words and figures “the Banking \nRegulation Act, 1949  (10 of 1949)” “the Companies Act, 2013 (18 of 2013)”, the words \nand figures “o r the Insolvency and Bankruptcy Code, 2016” shall be inserted.  \n2. In section 23A, in sub -section (3), after the words and figures ""the Companies Act, \n2013"", the words and figures ""or the Insolvency and Bankruptcy Code, 2016"" shall be \ninserted.  \n \nTHE TENTH SCHEDULE  \n(See section 254)  \n \nAMENDMENT TO THE LIMITED LIABILITY PARTNERSHIP ACT, 2008  \n(6 of 2009)  \nIn section 64, Clause (c) shall be omitted.  \n \nTHE ELEVENTH SCHEDULE  \n(See section 255)  \nAMENDMENTS TO THE COMPANIES ACT, 2013  \n(18 Of 2013)   \n \n \n159 \n \n \n  \n1. In section 2, -  \n(a) for clause (23), the following clause shall be substituted, namely: -  \n“(23) “Company Liquidator”, means a person appointed by the Tribunal as the Company \nLiquidator in accordance with the provisions of section 275 for the winding up of a company \nunder this Act”;  \n  (b) after clause (94), the following clause shall be inserted, namely: -  \n“(94A)  “winding up” means winding up under this Act or liquidation under the Insolvency and \nBankruptcy Code, 20 16, as applicable.”  \n \n 2. In section 8, in sub -section (9), for the words “the Rehabilitation and Insolvency Fund \nformed under section 269”, the words “Insolvency and Bankruptcy Fund formed under section \n224 of the Insolvency and Bankruptcy Code, 2016” shall be substituted.  \n \n 3. In section 66, in sub -section (8), for the words, brackets and figures “is unable, within the \nmeaning of sub -section (2) of section 271, to pay the amount of his debt or claim,” the words \nand figures “commits a default, within the meaning of section 6 of  the Insolvency and \nBankruptcy Code, 2016, in  respect of the amount of his debt or claim ,” shall  be substituted.  \n 4. In sections 77, in sub -section (3), after the words “the liquidator”, the words and figures \n“appointed under this Act or the Insolvency and  Bankruptcy Code, 2016, as the case may be,” \nshall be inserted.  \n5. In section 117, in sub -section (3), in clause (f), for the word and figures “section 304”, the \nwords and figures “section 59  of the Insolvency and Bankruptcy Code, 2016” shall be \nsubstitute d. \n 6. In section 224, in sub -section (2), after the words “wound up under this Act”, the words and \nfigures “or under the Insolvency and Bankruptcy Code, 2016” shall be inserted.  \n6A. In section 230, — \n(a) in sub -section (1), after the word ""liquidator"", th e words ""appointed under this Act or under \nthe Insolvency and Bankruptcy Code, 2016, as the case may be,"" shall be inserted;  \n(b) in sub -section (6), after the word ""on the liquidator"", the words ""appointed under this Act \nor under the Insolvency and Bankruptcy Code, 2016, as the case may be,"" shall be inserted;  \n7.  In section 249, in sub -section  (1), for clause (e), the following clause shall be inserted, \nnamely: - \n“(e) is being wound up under Chapter XX of this Act or under the Insolvency and Bankrup tcy \nCode, 2016.”  ']"
36,Under what circumstances shall the Adjudicating Authority initiate the liquidation process?,"The Adjudicating Authority shall initiate the liquidation process where it does not receive a resolution plan within the insolvency resolution process period, or if it rejects the resolution plan, or where the committee of creditors decides to liquidate the corporate debtor, or if there is a contravention of the resolution plan approved by the Adjudicating Authority.",,"[' \n \n \n40 \n \n \n 31.  Approval of resolution plan.  - \n  (1)  If the Adjudicating Authority is satisfied that the resolution plan as approved by \nthe commit tee of creditors under sub -section (4) of section 30 meets the requirements as \nreferred to in sub -section (2) of section 30, it shall by order approve the resolution plan \nwhich shall be binding on the corporate debtor and its employees, members, creditors,  \n1[including the Central Government, any State Government o r any local authority to whom \na debt in respect of the payment of dues arising under any law for the time being in force, \nsuch as authorities to whom statutory dues are owed, ] guarantors and other  stakeholders \ninvolved in the resolution plan . \n 2[Provided that the Adjudicating Authority shall, before passing  an order for approval of \nresolution plan under this sub -section, satisfy that the resolution plan has provisions for its \neffective implementation.]  \n (2) Where the Adjudicating Authority is satisfied that the resolution plan does not \nconfirm to the requirements referred to in sub -section (1), it may, by an order, reject the \nresolution plan.  \n(3)  After the order of approval under sub -section (1), - \n(a) the moratorium order passed by the Adjudicating Authority under section 14 \nshall cease to have effect; and  \n(b) the resolution professional shall forward all records relating to the conduct of \nthe corporate insolvency resolution process and  the resolution plan to the Board to be \nrecorded on its database.  \n3[(4) The resolution applicant shall, pursuant to the resolution plan approved under sub -section \n(1), obtain the necessary approval required under any law for the time being in force within a period \nof one year from the date of approval of the resolution plan by the Adjudicating Authority under \nsub-section (1) or within such period as provided for in such law, whichever is later : \nProvi ded that where the resolution plan contains a provision for combination, as referred to in \nsection 5 of the Competition Act, 2002, the resolution applicant shall obtain the approval of the \nCompetition Commission of India under that Act prior to the approva l of such resolution plan by the \ncommittee of creditors. ] \n32.  Appeal.  - \nAny appeal from an order approving the resolution plan shall be in the manner and on \nthe grounds laid down in sub -section (3) of section 61.  \n \n1 Ins. by Act No. 26 of 2019, sec. 7 (w.e.f. 16 -8-2019).  \n2 Ins. by Act. No. 26 of 2018, sec. 24 (w.e.f.  6-6-2018).  \n3 Ins. by Act. No. 26 of 2018, sec. 24 (w.e.f.  6-6-2018).   \n \n \n41 \n \n \n       1[32A.  (1) Notwithstanding anything to the contrary contained in this Code or any other \nlaw for the time being in force, the liability of  a corporate debtor for an offence committed \nprior to the commencement of the corporate insolvency resolution process shall cease, and the \ncorporate debtor shall not be prosecuted for such an offence from the date the resolution plan \nhas been approved by the Adjudicating Authority under section 31, if the resolution plan results \nin the change in the management or control of the  corporate debtor to a person who was not - \n(a) a promoter or in the management or control of the corporate debtor or a related party \nof such a person; or  \n(b) a person with regard to whom the relevant investigating authority has, on the basis of \nmaterial in its possession, reason to believe that he had abe tted or conspired for the \ncommission of the offence, and has submitted or filed a report or a complaint to the \nrelevant statutory authority or Court:  \n         Provided that if a prosecution had been instituted during the corporate insolvency \nresolution pro cess against such corporate debtor, it shall stand discharged from the date \nof approval of the resolution plan subject to requirements of this sub -section having \nfulfilled:  \n       Provided further that every person who was a “designated partner” as defined  in \nclause (j) of section 2 of the Limited Liability Partnership Act, 2008 or an “officer who \nis in default”, as defined in clause (60) of section 2 of the Companies Act, 2013, or was \nin any manner in -charge of, or responsible to the corporate debtor for t he conduct of its \nbusiness or associated with the corporate debtor in any manner and who was directly \nor indirectly involved in the commission of such offence as per the report submitted or \ncomplaint filed by the investigating authority, shall continue to be liable to be \nprosecuted and punished for such an offence committed by the corporate debtor \nnotwithstanding that the corporate debtor’s liability has ceased under this sub -section.  \n      (2) No action shall be taken against the property of the corporate debtor in relation to an \noffence committed prior to the commencement of the corporate insolvency resolution process \nof the corporate debtor, where such property is covered under a resolution plan approved by \nthe Adjudicating Authority under section 31, whi ch results in the change in control of the \ncorporate debtor to a perso n, or sale of liquidation assets under the provisions of Chapter II I of \nPart II of this Code to a person, who was not – \n   (i) a promoter or in the management or control of the corporate  debtor or a related party of \nsuch a person; or  \n  (ii) a person with regard to whom the relevant investigating authority has, on the basis of \nmaterial in its possession, reason to believe that he had abetted or conspired for the commission \nof the offence,  and has submitted or filed a report or a complaint to the relevant statutory \n \n1 Ins. by Act No. 1 of 2020 , sec.10 (w.e.f. 28 -12-2019).   \n \n \n42 \n \n \n authority or Court.  \nExplanation. - For th e purposes of this sub -section, it is hereby clarified that, - \n    (i) an action against the property of the corporate debtor in relation t o an offence shall include \nthe attachment, seizure, retention or confiscation of such property under such law as may be \napplicable to the corporate debtor;  \n     (ii) nothing in this sub -section shall be construed to bar an action against the property of any \nperson, other than the corporate debtor or a person who has acquired such property through \ncorporate insolvency resolution process or liquidation process under this  Code and fulfils the \nrequirements specified in this section, against whom such an action may be taken under such \nlaw as may be applicable.  \n(3) Subject to the provisions contained in sub -sections (1) and (2), and notwithstanding the \nimmunity given in this section, the corporate debtor and any person, who may be required to \nprovide assistance under such law as may be applicable to such corporate debtor or person, \nshall extend all assistance and co -operation to any authority investigating an offence committed  \nprior to the commencement of the corporate insolvency resolution process.]  \nCHAPTER III  \nLIQUIDATION PROCESS  \n33.  Initiation of liquidation. -  \n (1)  Where the Adjudicating Authority, - \n (a) before the expiry of the insolvency resolution process period or the maximum \nperiod permitted for completion of the corporate insolvency resolution process under \nsection 12 or the fast track corporate insolvency resolution process under section 56, as  \nthe case may be, does not receive a resolution plan under sub -section (6) of section 30; \nor \n(b) rejects the resolution plan under section 31 for the non -compliance of the \nrequirements specified therein,  \nit shall -  \n(i) pass an order requiring the corpora te debtor to be liquidated in the manner as \nlaid down in this Chapter;  \n (ii)  issue a public announcement stating that the corporate debtor is in liquidation; \nand  \n (iii) require such order to be sent to the authority with which the corporate debtor \nis reg istered.  \n (2) Where the resolution professional, at any time during the corporate insolvency \nresolution process but before confirmation of resolution plan, intimates the Adjudicating  \n \n \n43 \n \n \n Authority of the decision of the committee of creditors  1[approved by not less than sixty-six \nper cent. of the voting share ] to liquidate the corporate debtor, the Adjudicating Authority \nshall pass a liquidation order as referred to in sub -clauses (i), (ii) and (iii) of clause (b) of \nsub-section (1).  \n2[Explanat ion. – For the purpose of this sub -section, it is hereby declared that the \ncommittee of creditors may take the decision to liquidate the corporate debtor, any time \nafter its constitution under sub -section (1) of section 21 and before the confirmation of th e \nresolution plan, including at any time before the preparation of the information \nmemorandum. ] \n (3)  Where the resolution plan approved by the Adjudicating Authority is contravened \nby the concerned corporate debtor, any person other than the corporate deb tor, whose \ninterests are prejudicially affected by such contravention, may make an application to the \nAdjudicating Authority for a liquidation order as referred to in sub -clauses (i ), (ii), (iii) of \nclause (b) sub -section (1).  \n (4)  On receipt of an application under sub -section (3), if the Adjudicating Authority \ndetermines that the corporate debtor has contravened the provisions of the resolution plan, \nit shall pass a liquidation order as referred to in sub -clauses (i), (ii) and (iii) of clause (b) \nof sub -section (1).  \n   (5) Subject to section 52, when a liquidation order has been passed, no suit or other \nlegal proceeding shall be instituted by or against the corporate debtor:  \nProvided  that a suit or other legal proceeding may be instituted by the liquidator, on \nbehalf of the corporate debtor, with the prior approval of the Adjudicating Authority,  \n  (6)  the provisions of sub -section (5)  shall not apply to legal proceedings in relation to \nsuch transactions as may be notified by the Central Government in consultation with any \nfinancial sector regulator.  \n (7) The order for liquidation under this section shall be deemed to be a notice of \ndischarge to the officers, employees and workmen of the corporate debtor, except when the \nbusiness of the corporate debtor is continued during the liquidation process by the liquidator.  \n34. Appointment of liquidator and fee to be paid.  - \n (1) Where the Adjudicating Authority passes an order for liquidation of the corporate \ndebtor under section 33, the resolution professional appointed for the corporate insolvency \nresolution process under 3[Chapter II shall, subject to submission of a written consent by the \nresolution professional to the Adjudicatory Authority in specified form, ] shall act as the liquidator \nfor the purposes of liquidation unless replaced by the Adjudicating Authority under sub -\n \n1 Ins. by Act No. 26 of 2018, sec. 25 (w.e.f.  6-6-2018).  \n2 Ins. by Act No. 26 of 2019, sec. 8 (w.e.f. 16 -8-2019).  \n3 Subs. by Act No. 26 of 2018 , sec 26(a), for the words and figures “Chapter II shall” (w.e.f.  6-6-2018).  ']"
37,"What is the power of the Tribunal to request the Chief Metropolitan Magistrate, Chief Judicial Magistrate or the District Collector to take possession of property, books of account or other documents of a company under winding up?","The Tribunal may, in any proceedings for winding up of a company under this Act or in any proceedings under the Insolvency and Bankruptcy Code, 2016, in order to take into custody or under its control all property, books of account or other documents, request, in writing, the Chief Metropolitan Magistrate, Chief Judicial Magistrate or the District Collector within whose jurisdiction any such property, books of account or other documents of such company under this Act or of corporate persons under the said Code, are situated or found, to take possession thereof.",,"[' \n \n \n164 \n \n \n (b) in the Explanation , for clause (c), the fo llowing clause shall be substituted, namely; -  \n  “(c) the expression “relevant date” means  in the case of a company being \nwound up by the Tribunal, the date of appointment or first appointment of a \nprovisional liquidator, or if no such appointment was made, the date of the \nwinding up order, unless, in either case, the company had commenced to be \nwound up voluntarily before that date under the Insolvency and Bankruptcy \nCode 2016;”.  \n \n20. For section 329, the following section shall be subs tituted, namely: - \n “329. Transfer not in good faith to be void. - Any transfer of property, movable or \nimmovable, or any delivery of goods, made by a company, not being a transfer or delivery \nmade in the ordinary course of its business or in favour of a pu rchaser or encumbrance in \ngood faith and for valuable consideration, if made within a period of one year before the \npresentation of a petition for winding up by the Tribunal under this Act shall be void against \nthe Company Liquidator.” . \n21. For section 334 , the following section shall be substituted, namely: -  \n“334. Transfer, etc., after commencement of winding up to be void. - In the case of a winding \nup by the Tribunal, any disposition of the property, including actionable claims, of the \ncompany, and any  transfer of shares in the company or alteration in the status of its members, \nmade after the commencement of the winding up, shall, unless the Tribunal otherwise orders, \nbe void.”  \n \n22. In section 336, in sub -section (1), in the opening paragraph, for the words “whether by the \nTribunal or voluntarily, or which is subsequently order to be wound up by the Tribunal or \nwhich subsequently passes a resolution for voluntary winding up,”, the words “by the Tribunal \nunder this Act or which is subsequently ordered to  be wound up by the Tribunal under this \nAct”, shall be substituted.  \n \n23. In section 337, for the words “or which subsequently passes a resolution for voluntary \nwinding up,”, the words “under this Act”, shall be substituted.  \n24. In section 342 sub -sections (2), (3) and (4) shall be omitted.  \n \n25. In section 343, for sub -section (1), the following sub -section shall be substituted, namely - \n“(1) The Company Liquidator may, with the sanction of the Tribunal, when the \ncompany is being wound up by the Tribunal, - \n(i) pay any class of creditors in full;  \n(ii) make any compromise or arrangement with creditors or persons claiming to be \ncreditors, or having or alleging themselves to have any claim, present or future,  \n \n \n165 \n \n \n certain or contingent, against the company, or whereby the company may be \nrendered liable; or  \n(iii)compromise any call or liability to call, debt, and liability capable of resulting \nin a debt, and any claim, present or future, certain or contingent, ascertained or \nsounding only in damages, subsisting o r alleged to subsist between the company \nand a contributory or alleged contributory or other debtor or person \napprehending liability to the company, and all questions in any way relating to \nor affecting the assets or liabilities or the winding up of the co mpany, on such \nterms as may be agreed, and take any security for the discharge of any such call, \ndebt, liability or claim, and give a complete discharge in respect thereof.”  \n \n26. In section 347, for sub -section (1), the following sub -section shall be subst ituted, namely - \n“(1) When the affairs of a company have been completely wound up and it is about \nto be dissolved, its books and papers and those of the Company Liquidator may be \ndisposed of in such manner as the Tribunal directs.”  \n27. In section 348, for s ub-section (1), the following sub -section shall be substituted, namely - \n“(1) If the winding up of a company is not concluded within one year after its \ncommencement, the Company Liquidator shall, unless he is exempted from so doing , \neither wholly or in part  by the Central Government, within two months of the expiry of \nsuch year and thereafter until the winding up is concluded, at intervals of not more than \none year or at such shorter intervals, if any, as may be prescribed, file a statement in \nsuch form cont aining such particulars as may be prescribed, duly audited, by a person \nqualified to act as auditor of the company, with respect to the proceedings in, and \nposition of, the liquidation, with the Tribunal:  \nProvided that no such audit as is referred to in th is sub -section shall be necessary \nwhere the provisions of section 294 apply.”  \n28. For section 357, the following section shall be substituted, namely: - \n“357. Commencement of winding up by Tribunal. -The winding up of a company by \nthe Tribunal under this Ac t shall be deemed to commence at the time of the presentation \nof the petition for the winding up.”  \n29. In section 370, in the proviso, after  the words “obtained for the winding up of the company”, \nthe words “in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016” \nshall be inserted.  \n30. In section 372, after the words “ The provisions of this Act”, the words “or of the Ins olvency \nand Bankruptcy Code, 2016, as the case may be” shall be inserted.  \n31. In section 419, for sub -section (4), the following sub -section shall be substituted, namely: \n-   \n \n \n166 \n \n \n “(4) The Central Government shall, by notification, establish such number of bench es of the \nTribunal, as it may consider necessary, to exercise the jurisdiction, powers and authority of the \nAdjudicating Authority conferred on such Tribunal by or under Part II of the Insolvency and \nBankruptcy Code, 2016 ”. \n 32. In section 424, - \n(i)  in sub-section (1), after the words, “other provisions of this Act”, the words “or of \nthe Insolvency and Bankruptcy Code, 2016” shall be inserted;  \n(ii) in sub -section (2), after the words, “under this Act” , the words “or under the \nInsolvency and Bankruptcy Cod e, 2016” shall be inserted.  \n 33. In section 429, for sub section (1), the following sub -section shall be substituted, \nnamely: — \n“(1) The Tribunal may, in any proceedings for winding up of a company under this Act or in \nany proceedings under the Insolvency a nd Bankruptcy Code, 2016, in order to take into custody \nor under its control all property, books of account or other documents, request, in writing, the \nChief Metropolitan Magistrate, Chief Judicial Magistrate or the District Collector within whose \njurisdi ction any such property, books of account or other documents of such company under \nthis Act or of corporate persons under the said Code, are situated or found, to take possession \nthereof, and the Chief Metropolitan Magistrate, Chief Judicial Magistrate or the District \nCollector, as the case may be, shall, on such request being made to him, — \n(a) take possession of such property, books of account or other documents; and  \n(b) cause the same to be entrusted to the Tribunal or other persons authorised by it."".  \n \n34. For section 434, the following section shall be substituted, namely: -  \n“434.  Transfer of certain pending proceedings. - (1) On such date as may be notified by the \nCentral Government in this behalf, — \n (a) all matters, proceedings or cases pending before the Board of Company Law \nAdministration (herein in this section referred to as the Company Law Board) constituted under \nsub-section ( 1) of section 10E of the Companies Act, 1956  (1 of 1956) , immediately before \nsuch date shall stand transferr ed to the Tribunal and the Tribunal shall dispose of such matters, \nproceedings or cases in accordance with the provisions of this Act;  \n (b) any person aggrieved by any decision or order of the Company Law Board made \nbefore such date may file an appeal to t he High Court within sixty days from the date of \ncommunication of the decision or order of the Company Law Board to him on any question of \nlaw arising out of such order:  \n Provided that the High Court may if it is satisfied that the appellant was prevented by \nsufficient cause from filing an appeal within the said period, allow it to be filed within a further \nperiod not exceeding sixty days; and  ']"
38,What is the definition of excluded assets under the Insolvency and Bankruptcy Code?,"Excluded assets include unencumbered tools, books, vehicles, and other equipment necessary for the debtor's personal use or employment, unencumbered furniture and household equipment, personal ornaments, life insurance policies, and an unencumbered single dwelling unit owned by the debtor.",,"[' \n \n \n67 \n \n \n  he shall be punishable with imprisonme nt for a term which shall not be less than three years, \nbut may extend to five years or with fine which shall not be less than one lakh r upees, but \nmay extend to one crore rupees, or with both.  \n74. Punishment for contravention of moratorium or the resoluti on plan . - \n (1)  Where the corporate debtor or any of its officer violates the provisions of section \n14, any such officer who knowingly or wilfully committed or authorised or permitted such \ncontravention shall be punishable with imprisonment for a term whi ch shall not be less than \nthree years,  but may extend to five years or with fine which shall not be less than one lakh \nrupees, but may extend to three lakh  rupees, or with both.  \n (2) Where any creditor violates the provisions of section 14, any person who knowingly \nand wilfully authorised or permitted such contravention by a creditor shall be punishable with \nimprisonment for a term which shall not be less than one year, but may extend to five years, \nor with fine which shall not be less than one lakh rupees,  but may extend to one crore rupees, \nor with both.  \n(3) Where the corporate debtor, any of its officers or creditors or any person on whom \nthe approved resolution  plan is binding under section 31, knowingly and wilfully contravenes \nany of the terms of such  resolution plan or abets such contravention, such corporate debtor, \nofficer, creditor or person shall be punishable with imprisonment of not less than one year, \nbut may extend to five years, or with fine which shall not be less than one lakh rupees, but \nmay extend to one crore rupees, or with both.  \n75.  Punishment for false information furnished in application.  - \n Where any person furnishes information in the application made under section \n7, which is false in material particulars, knowing it to be false or omits any material fact, \nknowing it to be material, such person shall be punishable with fine which shall not be less \nthan one lakh rupees, but may extend to one crore rupees.  \n76. Punishment for non -disclosure of dispute or 1[payment ] of debt by operational \ncreditor. - \n  Where - \n(a)   an operational creditor has wilfully or knowingly concealed in an application \nunder section 9 the fact that the corporate debtor had notified him of a dispute in respect \nof the unpaid operational debt or t he full and final 2[payment ] of the unpaid operational \ndebt; or  \n(b) any person who knowingly and wilfully authorised or permitted such \nconcealment under clause (a)  \n \n1 Subs. by Act. No. 26 of 2018, sec. 31(a), for the word “repayment” (w.e.f.  6-6-2018).  \n2 Subs. by Act. No. 26 of 2018, sec. 31(b), for the word “repayment” (w.e.f.  6-6-2018).   \n \n \n68 \n \n \n such operational creditor or person, as the case may be, shall be punishable with imprison ment \nfor a term which shall not be less than one year but may extend to five years or with fine \nwhich shall not be less than one lakh rupees but may extend to one crore rupees, or with both.  \n77. Punishment for providing false information in application mad e by corporate \ndebtor.  - \n Where - \n (a) a corporate debtor provides information in the application under section 10 \nwhich is false in material particulars, knowing it to be false and omits any material fact, \nknowing it to be material; or  \n (b) any person who knowingly and wilfully authorised or permitted the furnishing \nof such information under sub -clause (a)  \nsuch corporate debtor or person, as the case may be, shall be punishable with imprisonment \nfor a term which shall not be less than three  years, but which may extend to five years and \nwith fine which shall not be less than one lakh rupees, but which may extend to one crore \nrupees, or with both.  \nExplanation. – For the purpose of this section and sections 75 and 76, an application \nshall be d eemed to be false in material particulars in case the facts mentioned or omitted in \nthe application, if true, or not omitted from the application as the case may be, would have \nbeen sufficient to determine the existence of a default under this Code.  \n \nPART III \nINSOLVENCY RESOLUTION AND BANKRUPTCY FOR INDIVIDUALS AND \nPARTNERSHIP FIRMS  \nCHAPTER I  \nPRELIMINARY  \n78. Application.  - \n This Part shall apply to matters relating to fresh start, insolvency and bankruptcy of \nindividuals and partnership firms where the amou nt of the default is not less than one \nthousand rupees:  \n  Provided that the Central Government may, by notification, specify the minimum \namount of default of higher value which shall not be more than one lakh rupees.  \n79.   Definitions.  - \n In this Part, unless the context otherwise requires, -  \n  (1) “Adjudicating Authority” means the Debt Recovery Tribunal constituted under sub - \n \n \n69 \n \n \n section (1) of section 3 of the Recovery of Debts Due to Banks and Financial Institution Act, \n1993  (51 of 1993) ; \n(2) “associate” of the debtor means – \n(a) a person who belongs to the immediate family of the debtor;  \n(b) a person who is a relative of the debtor or a re lative of the spouse of the debtor;  \n(c) a person who is in partnership with the debtor;  \n(d) a person who is a spouse or a relative of any person with whom the debtor is in \npartnership;  \n(e) a person who is employer of the debtor or employee of the debtor;  \n(f)  a person who is a trustee of a trust in which the beneficiaries of the trust include \na debtor, or the terms of the trust confer a power on the trustee which may be exercised \nfor the benefit of the debtor; and  \n(g) a company, where the debtor or the debt or along with his associates, own more \nthan fifty per cent. of the share capital of the company or control the appointment of the \nboard of directors of the company.  \nExplanation. - For the purposes of this sub -section, “relative”, with reference to any \nperson, means anyone who is related to another, if - \n(i) they are members of a Hindu Undivided Family;  \n(ii) one person is related to the other in such manner as may be prescribed;  \n (3) “bankrupt” means – \n(a) a debtor who has been adjudged as bankrupt by a bankruptcy order under \nsection 126;  \n(b) each of the partners of a firm, where a bankruptcy order under section 126 has \nbeen made against a firm; or  \n(c) any person adjudged as an undischarged insolvent;  \n (4) “bankruptcy” means the state of being bankrupt;  \n (5) “bankruptcy debt”, in relation to a bankrupt, means – \n(a) any debt owed by him as on the bankruptcy commencement date;  \n(b) any debt for which he may become liable after bankruptcy commencement date \nbut before his discharge by reason of any transaction entered into before the bankruptcy \ncommencement date; and  \n(c) any interest which is a part of the debt under section 171;   \n \n \n70 \n \n \n  (6) “bankruptcy commencement date” means the date on which a bankruptcy order is \npassed by the Adjudicating Authority under section 126;  \n (7) “bankruptcy order” means an order passed by an Adjudicating Authority under \nsection 126;  \n (8) “bankruptcy process” means a process against a debtor under Chapters IV and V of \nthis part;  \n (9) “bankruptcy trustee” means the insolvency professional appointed as a trustee for \nthe estate of the bankrupt under section 125;  \n(10) “Chapter” means a chapter under this Part;  \n (11) “committee of creditors” means a committee constituted un der section 134;  \n (12) “debtor” includes a judgment -debtor;  \n (13) “discharge  order” means an order passed by the Adjudicating Authority \ndischarging the debtor under sections 92, 119 and section 138, as the case may be;  \n (14) “excluded  assets” for the purp oses of this part includes – \n (a) unencumbered tools, books, vehicles and other equipment as are necessary to \nthe debtor or bankrupt for his personal use or for the purpose of his employment, \nbusiness or vocation,  \n(b) unencumbered furniture, household equi pment and provisions as are necessary \nfor satisfying the basic domestic needs of the bankrupt and his immediate family;  \n(c) any unencumbered personal ornaments of such value, as may be prescribed, of \nthe debtor or his immediate family which cannot be parted with, in accordance with \nreligious usage;  \n(d) any unencumbered life insurance policy or pension plan taken in the name of \ndebtor or his immediate family; and  \n(e) an unencumbered single dwelling unit owned by the debtor of such value as \nmay be prescr ibed;  \n (15) “excluded debt” means – \n(a) liability to pay fine imposed by a court or tribunal;  \n(b) liability to pay damages for negligence, nuisance or breach of a statutory, \ncontractual or other legal obligation;  \n(c)  liability to pay maintenance to any person under any law for the time \nbeing in force;  \n(d) liability in relation to a student loan;  \n(e) any other debt as may be prescribed;  ']"
39,Under what circumstances can the Reserve Bank supersede the board of a credit information company?,"The Reserve Bank may supersede the board of a credit information company if it is satisfied that it is in the public interest or in the interest of banking policy or the credit system of the country, or for preventing the affairs of the company from being managed in a manner detrimental to the interest of banking policy or credit institutions or borrowers or clients.",,"['7 \n having special knowledge  in, or practical experience of, the matters relating to public administration, law, \nbanking, finance, accountancy,  management or information te chnology.  \n(4) In discharging its functions, the board shall act on business principles and shall have due regard to \nthe interest of its specified users, credit institutions or the clients or borrowers of credit institutions.  \n(5) Where the Reserve Bank is s atisfied that it is in the public interest or in the interest of banking \npolicy or  credit system of the country, or for preventing the affairs of any credit information company \nbeing managed in a  manner detrimental to the interest of banking policy or cred it institutions or borrowers \nor clients or for securing the  proper management of any credit information company, it is necessary so to \ndo, the Reserve Bank may, for reasons to  be recorded in writing, by order published in the Official \nGazette, supersede th e board of such company, for such  period not exceeding six months, as may be \nspecified in the order and which may be extended from time to time, so,  however, that the total period \nshall n ot exceed twelve months : \nProvided that before making any such order, the Reserve Bank shall give a reasonable opportunity to \nthe board  of such credit information company to make representation against the proposed supersession \nand shall consider the  representation, if any, of the board.  \n(6) The Reserve Bank may, on superses sion of the board of a credit information company under sub -\nsection ( 5), appoint an Administrator for such period and on such salary and other terms and conditions as \nit may determine.  \n(7) The Reserve Bank may issue such directions to the Administrator as it may deem appropriate and \nthe Administrator shall be bound to follow such directions.  \n(8) Upon making of the order under sub -section ( 5), superseding the board of a credit information \ncompany — \n(a) the chairperson, managing director and other directors of  such credit information company \nshall, as from  the date of supersession, vacate their offices as such;  \n(b) all the powers, functions and duties which may, by or under the provisions of the Companies \nAct, 1956  (1 of 1956) or this Act or any other law for the time being in force, be exercised or \ndischarged, by or on  behalf of the board of such credit information company, or by a resolution \npassed in general meeting of  that company, shall, until the reconstitution of its board under                    \nsub-section ( 10), be exercised and  discharged by the Administrator appointed by the Res erve Bank \nunder sub -section ( 6): \nProvided that the powers exercised by the Administrator shall be valid notwithstanding that such \npowers are  exercisable by a resolution passed  in the general meeting of such credit information company.  \n(9) The salary and allowances payable to the Administrator and staff assisting the Administrator shall \nbe borne  by the credit information company.  \n(10) On and before the expiration of two months b efore expiry of the period of supersession \nmentioned in the  order of the Reserve Bank issued under sub -section ( 5), the Administrator of the credit \ninformation company, shall  call a general meeting of the credit information company to elect new \ndirectors a nd reconstitute its board and any  person who had vacated his office under clause ( a) of        \nsub-section ( 8), shall not be deemed to be disqualified for re -appointment.  \n(11) Notwithstanding anything contained in any law for the time being in force or in any contract or \nthe memorandum or articles of association, of the credit information company, on the removal of a person \nfrom office  under this section, that person shall not be entitled to claim any compensation for the loss or \ntermination of office.  \n10. Power of Reserve Bank to determine policy .—Where the Reserve Bank is satisfied that it is \nnecessary or  expedient in the public interest or in the interest of specified users or in the interest of credit \ninformation companies or  credit institutions or clien ts or borrowers so to do, it may determine the policy \nin relation to functioning of credit  information companies or credit institutions or specified users \ngenerally or in particular and when the policy has been  so determined all credit information companie s, \ncredit institutions and specified users, as the case may be, shall be  bound to follow the policy as so \ndetermined.  8 \n 11. Power of Reserve Bank to give directions .—(1) Where the Reserve Bank is satisfied that, — \n(a) in the public interest; or  \n(b) in the int erest of credit institutions; or  \n(c) in the interest of specified users; or  \n(d) in the interest of banking policy; or  \n(e) to prevent the affairs of any credit information company being conducted in a manner \ndetrimental to the  interests of its specified users or in a manner prejudicial to the interests of credit \ninstitutions or  borrowers or clients; or  \n(f) to secure the proper management of credit information companies generally,  \nit is necessary to issue directions to credit information companies or credi t institutions or specified users \ngenerally or  to any credit information company or credit institution or specified user in particular, it may, \nfrom time to time, issue  such directions as it deems fit, and such credit information companies, credit \ninstitutions and specified users or credit  information company, credit institution, and specified user, as the \ncase may be, shall be bound to comply with such  directions.  \n(2) The Reserve Bank may, on representation made to it or on its own motion, modify o r cancel any \ndirection  issued under sub -section ( 1), and the Reserve Bank, in so modifying or cancelling any direction, \nmay impose such  conditions as it thinks fit, subject to which the modification or cancellation shall have \neffect.  \n(3) The Reserve Bank m ay, at any time, if it is satisfied that in the public interest or in the interest of a \ncredit  information company or its members, it is necessary so to do, by order in writing and on such terms \nand conditions as  may be specified therein, — \n(a) require such  credit information company to call a meeting of its directors for the purpose of \nconsidering  any matter relating to or arising out of the affairs of the credit information company;  \n(b) depute one or more of its officers to watch the proceedings at any mee ting of the board of the \ncredit  information company or of any committee or of any other body constituted by it and require the \ncredit  information company to give an opportunity to the officers so deputed to be heard at such \nmeetings and  also require such o fficers to send a report of such proceedings to the Reserve Bank;  \n(c) require the board of the credit information company or of any committee or any other body \nconstituted  by it to give in writing to any officer deputed by the Reserve Bank in this behalf a t his \nusual address all  notices of, and other communications relating to, any meeting of the board, \ncommittee or other body  constituted by it;  \n(d) appoint one or more of its officers to observe the manner in which the affairs of the credit \ninformation  comp any or of its offices or branches are being conducted and make a report thereon;  \n(e) require the credit information company to make, within such time as may be specified in the \norder, such  changes in the management as the Reserve Bank may consider necessar y. \n(4) The Reserve Bank may, at any time, direct any credit information company to furnish it within \nsuch time as  may be specified by the Reserve Bank, such statements and information relating to the \nbusiness or affairs of the credit  information company as  the Reserve Bank may consider necessary or \nexpedient to obtain for the purpose of this Act.  \n12.  Inspection   of  credit   information   company,  credit  institution  and  specified                  \nuser.—(1) Notwithstanding  anything to the contrary contain ed in section 235 of the Companies Act,                  \n1956 (1 of 1956), the Reserve Bank, at any  time, may and on being directed so to do by the Central \nGovernment shall, cause an inspection to be made, by one or  more of its officers or through such other \npersons or agency as the Reserve Bank may determine, of any credit  information company or credit \ninstitution or specified user and their books and accounts; and the Reserve Bank shall  supply to the credit \ninformation company or credit institution or specified user, as the case may be, a copy of its report  on \nsuch inspection.  \n(2) It shall be the duty of every director or other officer or employee of the credit information \ncompany, credit  institution and specified user to produce to any officer or perso n or agency,   as the case  ']"
40,"What is the purpose of the Credit Information Companies (Regulation) Act, 2005?",The purpose of the Act is to provide for regulation of credit information companies and to facilitate efficient distribution of credit and for matters connected therewith or incidental thereto.,,"['1 \n THE CREDIT INFORMATI ON COMPANIES (REGULA TION) ACT, 2005  \n___________  \nARRANGEMENT OF SECTIONS  \n___________  \nCHAPTER I  \nPRELIMINARY  \nSECTIONS  \n1. Short title, extent and commencement . \n2. Definitions . \n \nCHAPTER II  \nREGISTRATION OF CREDIT INFORMATION COMPANIES  \n3. Prohibition to commence or carry on business of credit information . \n4. Application for registration . \n5. Grant of certificate of registration . \n6. Power of Reserve Bank to cancel certificate of registration . \n7. Appeal against order of Reserve Bank . \n8. Requirement as to minimum capital . \n \nCHAPTER III  \nMANAGEMENT OF CREDIT  INFORMATION COMPANIES  \n9. Management of credit information company . \n10. Power of Reserve Bank to determine policy . \n11. Power of Reserve Bank to give directions . \n12. Inspection of credit information company, credit institution and specified user . \n \nCHAPTER IV  \nAUDITORS  \n13. Powers and duties of auditors . \n \nCHAPTER V  \nFUNCTIONS OF CREDIT  INFORMATION COMPANIES  \n14. Functions of a credit information company . \n15. Credit institution to be member of a credit information company . \n16. Failure to become a member of a credit information company . \n17. Collection and furnishing of credit information . \n18. Settlement of dispute . \n \nCHAPTER VI  \nINFORMATION PRIVACY PRINCIPLES  AND FURNISHING OF CREDIT  INFORMATION  \n19. Accuracy and security of credit information . \n20. Privacy principles . \n21. Altera tion of credit information files and credit reports . 2 \n SECTIONS  \n22. Unauthorised access to credit information . \n \nCHAPTER VII  \nOFFENCES AND PENALTIES  \n23. Offences and penalties . \n24. Cognizance of offences . \n25. Power of Reserve Bank to impose penalty . \n26. Application of fines . \n \nCHAPTER VIII  \nMISCELLANEOUS  \n27. Power of Reserve Bank to specify maximum amount of fees . \n28. Disclosure of information before any court or tribunal or authority . \n29. Obligations as to fidelity and secrecy . \n30. Protection of action taken in good faith . \n31. Bar of jurisdiction . \n32. Power of Reserve Bank to exempt in certain cases . \n33. Application of other laws not barred . \n34. Amendment of certain enactments . \n35. Removal of difficulties . \n36. Power to make rules . \n37. Power of Reserve Bank to make regulations  \nTHE SCHEDULE . \n  3 \n THE CREDIT INFORMATI ON COMPANIE S (REGULATION) ACT, 2005  \nACT NO. 30 OF 2005  \n[23rd June, 2005 .] \nAn Act to provide for regulation of credit information companies and to facilitate efficient \ndistribution of credit and for matters connected therewith or incidental thereto . \nBE it enacted by Parliament in the Fifty -sixth Year of the Republic of India as follows: — \nCHAPTER I  \nPRELIMINARY  \n1. Short title, extent and commencement .—(1) This Act may be called the Credit Information \nCompanies  (Regulation) Act, 2005.  \n(2) It extends to the  whole of India.  \n(3) It shall come into force on such date1 as the Central Government may, by notification in the \nOfficial Gazette,  appoint : \nProvided that different dates may be appointed for different provisions of this Act, and any reference \nin any such  provision to the commencement of this Act shall be construed as a reference to the coming \ninto force of that  provision.  \n2. Definitions .—In this Act, unless the context otherwise requires, — \n(a) “board” means the Board of directors of a credit information company;  \n(b) “borrower” means any person who has been granted loan or any other credit facility by a \ncredit  institution and includes a client of a credit institution;  \n(c) “client” includes — \n(i) a guarantor or a person who proposes to give guarantee or secu rity for a borrower of a \ncredit  institution; or  \n(ii) a person — \n(A) who has obtained or seeks to obtain financial assistance from a credit institution, by \nway of  loans, advances, hire purchase, leasing facility, letter of credit, guarantee facility, \nventure  capital assistance or by way of credit cards or in any other form or manner;  \n(B) who has raised or seeks to raise money by issue of security as defined in clause ( h) of \nsection  2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956), or by issue  of \ncommercial  paper, depository receipt or any other instrument;  \n(C) whose financial standing has been assessed or is proposed to be assessed by a credit  \ninstitution or any other person or institution as may, by notification, be directed by the  \nReserve Ba nk; \n(d) “credit information” means any information relating to — \n(i) the amounts and the nature of loans or advances, amounts outstanding under credit cards \nand other  credit facilities granted or to be granted, by a credit institution to any borrower;  \n(ii) the nature of security taken or proposed to be taken by a credit institution from any \nborrower for  credit facilities granted or proposed to be granted to him;  \n(iii) the  guarantee furnished or any other non -fund based facility granted or proposed to be \ngranted by a  credit institution for any of its borrowers;  \n(iv) the credit  worthiness of any borrower of a credit institution;  \n                                                           \n1. 14th December, 2006, vide notification No. S.O. 2098(E), dated 14th December, 2006, see Gazette of India, Extraordinary, \nPart II, sec. 3( ii). 4 \n (v) any  other matter which the Reserve Bank may, consider necessary for inclusion in the \ncredit  information to be collected and maintained by credit information companies, and, specify, \nby notification, in this behalf;  \n(e) “credit information company” means a com pany formed and registered under the Companies \nAct, 1956  (1 of 1956) and which has been granted a certificate of registration under sub -section ( 2) of \nsection 5;  \n(f) “credit institution” means a banking company and includes — \n(i) a corresponding new bank, t he State Bank of India, a subsidiary bank, a co -operative bank, \nthe National Bank and regional rural bank;  \n(ii) a non -banking financial company as defined under clause ( f) of section 45 -I of the \nReserve Bank  of India Act, 1934 (2 of 1934);  \n(iii) a public f inancial insti tution referred to in section 4 A of the Companies Act,                      \n1956 (1 of 1956);  \n(iv) the financial corporation established by a State under section 3 of the State Financial \nCorporation  Act, 1951 (63 of 1951);  \n(v) the housing finance institution referred to in clause ( d) of section 2 of the National \nHousing Bank  Act, 1987 (53 of 1987);  \n(vi) the companies engaged in the business of credit cards and other similar cards and \ncompanies  dealing with distribution of credit in any othe r manner;  \n(vii) any other institution which the Reserve Bank may specify, from time to time, for the \npurposes of  this clause;  \n(g) “credit scoring” means a system which enables a credit institution to assess the credit  \nworthiness and  capacity of a borrower to repay his loan and advances and discharge his other \nobligations in respect of  credit facility availed or to be availed by him;  \n(h) “notification” means a notification published in the Official Gazette of India;  \n(i) “prescribed” means prescribed by rules  made under this Act;  \n(j) “regulations” means regulations made by the Reserve Bank under this Act;  \n(k) “Reserve Bank” means the Reserve B ank of India constituted under s ection 3 of the Reserve \nBank of  India Act, 1934 (2 of 1934);  \n(l) “specified user” means  any credit institution, credit information company being a member \nunder sub -section  (3) of section 15, and includes such other person or institution as may be specified \nby regulations  made, from time to time, by the Reserve Bank for the purpose of obtaining credit \ninformation from a  credit information company;  \n(m) words and expressions used herein and not defined in this Act but defined in the Reserve \nBank of India  Act, 1934 (2 of 1934) or the Banking Regulation Act, 1949 (10 of 1949) or the \nCompani es Act, 1956 (1  of 1956) shall have the meanings respectively assigned to them in those \nActs.  \nCHAPTER II  \nREGISTRATION OF CREDIT INFORMATION COMPANIES  \n3. Prohibition to commence or carry on business of credit information .—Save as otherwise \nprovided in this  Act, no company shall commence or carry on the business of credit information without \nobtaining a certificate of  registration from the Reserve Bank under this Act.  \n4. Application for registration .—(1) Every company which intends to commence the business of  \ncredit  information shall make an application for registration to the Reserve Bank in such form and manner \nas may be  specified by regulations.  ']"
41,What are the penalties for contravening any provision of the Act or obstructing the lawful exercise of any power conferred by or under the Act?,"The penalty is a fine of up to one lakh rupees, and a further fine of up to five thousand rupees for every day during which the contravention or default continues.",,"['12 \n credit information maintained by them  is accurate, complete, duly protected against any loss or \nunauthorised access or use or unauthorised disclosure thereof.  \n20. Privacy principles .—Every credit information company, credit institution and specified user, \nshall adopt the  following privacy principles in relation to collection, processing, collating, recording, \npreservation, secrecy, sharing  and usage of credit information, namely: — \n(a) the principles — \n(i) which may be followed by every credit institution for collection of information from its \nborrowers  and clients and by every credit information company, for collection of information \nfrom its  member credi t institutions or credit information companies, for processing, recording, \nprotecting  the data relating to credit information furnished by, or obtained from, their member \ncredit  institutions or credit information companies, as the case may be, and sharing of such data \nwith specified users;  \n(ii) which may be adopted by every specified user for processing, recording, preserving and \nprotecting  the data relating to credit information furnished, or received, as the case may be, by it;  \n(iii) which may be adopted by every credit information company for allowing access to \nrecords  containing credit information of borrowers and clients and alteration of such records in \ncase of  need to do so;  \n(b) the purpose for which the credit information may be used, restriction on such use and \ndisclosure thereof;  \n(c) the extent of obligation to check accuracy of credit information before furnishing of such \ninformation to  credit information companies or credit institutions or specified users, as the case may \nbe; \n(d) preservation of c redit information maintained by every credit information company, credit \ninstitution,  and specified user as the case may be (including the period for which such information \nmay be  maintained, manner of deletion of such information and maintenance of record s of credit \ninformation);  \n(e) networking of credit information companies, credit institutions and specified users through \nelectronic  mode;  \n(f) any other principles and procedures relating to credit information which the Reserve Bank may \nconsider  necessary and appropriate and may be specified by regulations.  \n21. Alteration of credit information files and credit reports .—(1) Any person, who applies for \ngrant or  sanction of credit facility, from any credit institution, may request to such institution to furnis h \nhim a copy of the  credit information obtained by such institution from the credit information company.  \n(2) Every credit institution shall, on receipt of request under sub -section ( 1), furnish to the person \nreferred to in  that sub -section a copy of the cr edit information subject to payment of such charges, as may \nbe specified by  regulations, by the Reserve Bank in this regard.  \n(3) If a credit information company or specified user or credit institution in possession or control of \nthe credit  information, has  not updated the information maintained by it, a borrower or client may request \nall or any of them to  update the information; whether by making an appropriate correction, or addition or \notherwise, and on such request  the credit information company or the s pecified user or the credit \ninstitution, as the case may be, shall take appropriate  steps to update the credit information within thirty \ndays after being requested to do so : \nProvided that the credit information company and the specified user shall make the  correction, \ndeletion or  addition in the credit information only after such correction, deletion or addition has been \ncertified as correct by the  concerned credit institution : \nProvided further that no such correction, deletion or addition shall be made in the credit information if \nany dispute relating to such correction, deletion or addition is pending before any arbitrator or tribunal or \ncourt and in  cases where such dispute is pending, the entries in the books of the concerned credit \ninstitution shall be taken into  account for the purpose of credit information.  13 \n 22. Unauthorised access to credit information .—(1) No person shall have access to credit \ninformation in the  possession or control of a credit information company or a credit institution or a \nspecified user unless the access is  authorised by this Act or any other law for the time being in force or \ndirected to do so by any court or tribunal and any  such access to credit information without such \nauthorisation or direction shall be considered as a n unauthorised access  to credit information.  \n(2) Any person who obtains unauthorised access to credit information as referred to in sub -section ( 1) \nshall be  punishable with fine which may extend to one lakh rupees in respect of each offence and if he \nconti nues to have such  unauthorised access, with further fine which may extend to ten thousand rupees \nfor every day on which the default  continues and such unauthorised credit information shall not be taken \ninto account for any purpose.  \nCHAPTER VII  \nOFFENCES AND  PENALTIES  \n23. Offences and penalties .—(1) Whoever, in any return or other document or in any information \nrequired or  furnished by, or under, or for the purposes of, any provision of this Act, wilfully makes a \nstatement which is false in  any material parti cular, knowing it to be false, or wilfully omits to make a \nmaterial statement, shall be punishable with  imprisonment for a term which may extend to one year and \nshall also be liable to fine.  \n(2) Every credit information company or a credit institution or a ny specified user, wilfully, \nperforming any act or  engaging in any practice, in breach of any of  the principles referred to in s ection 20, \nshall be punishable with fine not  exceeding one crore rupees.  \n(3) Any credit information company or credit institution or specified user wilfully providing to any \nother credit  information company or credit institution or specified user or borrower or client, as the case \nmay be, credit  information which is false in any material particular, knowing it to be false , or wilfully \nomits to make a material  statement, shall be punishable with fine which may extend to one crore rupees.  \n(4) Any person who contravenes any provision of this Act or of any rule or order made thereunder, or \nobstructs  the lawful exercise of any power conferred by or under this Act, or makes default in complying \nwith any requirement  of this Act or of any rule or order made or direction issued thereunder, shall, if no \nspecific provision is made under  this Act for punishment of such contravention, o bstruction or default, be \npunishable with fine which may extend to  one lakh rupees and where a contravention or default is a \ncontinuing one, with a further fine which may extend to five  thousand rupees for every day during which \nthe contravention or defaul t continues.  \n(5) Where a contravention or default has been committed by a credit information company or credit \ninstitution  or specified user, as the case may be, every person who, at the time the contravention or default \nwas committed, was  in charge of, an d was responsible to the credit information company or credit \ninstitution or specified user for the  conduct of its business, shall be deemed to be guilty of the \ncontravention or default and shall be liable to be proceeded  against and punished accordingly : \nProvided that nothing contained in this sub -section shall render any such person liable to any \npunishment  provided in this Act if he proves that the contravention or default was committed without his \nknowledge or that he  exercised all due diligence to prev ent the contravention or default.  \n(6) Notwithstanding anything contained in sub -section (5), where a contravention or default has been \ncommitted  by a credit information company or credit institution or specified user, as the case may be, and \nit is proved t hat the  same was committed with the consent or connivance of, or is attributable to any gross \nnegligence on the part of its  chairperson, managing director, any other director, manager, secretary or \nother officer of the credit information  company or the cre dit institution, such chairperson, managing \ndirector, any other director, manager, secretary or other  officer shall also be deemed to be guilty of that \ncontravention or default and shall be liable to be proceeded against  and punished accordingly.  \nExplanati on.—For the purposes of this section, — \n(a) “company” means any body corporate and includes a firm or other association of individual, \nand \n(b) “director”, in relation to a firm, means a partner in the firm.  ']"
42,What is the requirement for a company to commence or carry on the business of credit information?,No company shall commence or carry on the business of credit information without obtaining a certificate of registration from the Reserve Bank under the Act.,,"['1 \n THE CREDIT INFORMATI ON COMPANIES (REGULA TION) ACT, 2005  \n___________  \nARRANGEMENT OF SECTIONS  \n___________  \nCHAPTER I  \nPRELIMINARY  \nSECTIONS  \n1. Short title, extent and commencement . \n2. Definitions . \n \nCHAPTER II  \nREGISTRATION OF CREDIT INFORMATION COMPANIES  \n3. Prohibition to commence or carry on business of credit information . \n4. Application for registration . \n5. Grant of certificate of registration . \n6. Power of Reserve Bank to cancel certificate of registration . \n7. Appeal against order of Reserve Bank . \n8. Requirement as to minimum capital . \n \nCHAPTER III  \nMANAGEMENT OF CREDIT  INFORMATION COMPANIES  \n9. Management of credit information company . \n10. Power of Reserve Bank to determine policy . \n11. Power of Reserve Bank to give directions . \n12. Inspection of credit information company, credit institution and specified user . \n \nCHAPTER IV  \nAUDITORS  \n13. Powers and duties of auditors . \n \nCHAPTER V  \nFUNCTIONS OF CREDIT  INFORMATION COMPANIES  \n14. Functions of a credit information company . \n15. Credit institution to be member of a credit information company . \n16. Failure to become a member of a credit information company . \n17. Collection and furnishing of credit information . \n18. Settlement of dispute . \n \nCHAPTER VI  \nINFORMATION PRIVACY PRINCIPLES  AND FURNISHING OF CREDIT  INFORMATION  \n19. Accuracy and security of credit information . \n20. Privacy principles . \n21. Altera tion of credit information files and credit reports . 2 \n SECTIONS  \n22. Unauthorised access to credit information . \n \nCHAPTER VII  \nOFFENCES AND PENALTIES  \n23. Offences and penalties . \n24. Cognizance of offences . \n25. Power of Reserve Bank to impose penalty . \n26. Application of fines . \n \nCHAPTER VIII  \nMISCELLANEOUS  \n27. Power of Reserve Bank to specify maximum amount of fees . \n28. Disclosure of information before any court or tribunal or authority . \n29. Obligations as to fidelity and secrecy . \n30. Protection of action taken in good faith . \n31. Bar of jurisdiction . \n32. Power of Reserve Bank to exempt in certain cases . \n33. Application of other laws not barred . \n34. Amendment of certain enactments . \n35. Removal of difficulties . \n36. Power to make rules . \n37. Power of Reserve Bank to make regulations  \nTHE SCHEDULE . \n  3 \n THE CREDIT INFORMATI ON COMPANIE S (REGULATION) ACT, 2005  \nACT NO. 30 OF 2005  \n[23rd June, 2005 .] \nAn Act to provide for regulation of credit information companies and to facilitate efficient \ndistribution of credit and for matters connected therewith or incidental thereto . \nBE it enacted by Parliament in the Fifty -sixth Year of the Republic of India as follows: — \nCHAPTER I  \nPRELIMINARY  \n1. Short title, extent and commencement .—(1) This Act may be called the Credit Information \nCompanies  (Regulation) Act, 2005.  \n(2) It extends to the  whole of India.  \n(3) It shall come into force on such date1 as the Central Government may, by notification in the \nOfficial Gazette,  appoint : \nProvided that different dates may be appointed for different provisions of this Act, and any reference \nin any such  provision to the commencement of this Act shall be construed as a reference to the coming \ninto force of that  provision.  \n2. Definitions .—In this Act, unless the context otherwise requires, — \n(a) “board” means the Board of directors of a credit information company;  \n(b) “borrower” means any person who has been granted loan or any other credit facility by a \ncredit  institution and includes a client of a credit institution;  \n(c) “client” includes — \n(i) a guarantor or a person who proposes to give guarantee or secu rity for a borrower of a \ncredit  institution; or  \n(ii) a person — \n(A) who has obtained or seeks to obtain financial assistance from a credit institution, by \nway of  loans, advances, hire purchase, leasing facility, letter of credit, guarantee facility, \nventure  capital assistance or by way of credit cards or in any other form or manner;  \n(B) who has raised or seeks to raise money by issue of security as defined in clause ( h) of \nsection  2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956), or by issue  of \ncommercial  paper, depository receipt or any other instrument;  \n(C) whose financial standing has been assessed or is proposed to be assessed by a credit  \ninstitution or any other person or institution as may, by notification, be directed by the  \nReserve Ba nk; \n(d) “credit information” means any information relating to — \n(i) the amounts and the nature of loans or advances, amounts outstanding under credit cards \nand other  credit facilities granted or to be granted, by a credit institution to any borrower;  \n(ii) the nature of security taken or proposed to be taken by a credit institution from any \nborrower for  credit facilities granted or proposed to be granted to him;  \n(iii) the  guarantee furnished or any other non -fund based facility granted or proposed to be \ngranted by a  credit institution for any of its borrowers;  \n(iv) the credit  worthiness of any borrower of a credit institution;  \n                                                           \n1. 14th December, 2006, vide notification No. S.O. 2098(E), dated 14th December, 2006, see Gazette of India, Extraordinary, \nPart II, sec. 3( ii). 4 \n (v) any  other matter which the Reserve Bank may, consider necessary for inclusion in the \ncredit  information to be collected and maintained by credit information companies, and, specify, \nby notification, in this behalf;  \n(e) “credit information company” means a com pany formed and registered under the Companies \nAct, 1956  (1 of 1956) and which has been granted a certificate of registration under sub -section ( 2) of \nsection 5;  \n(f) “credit institution” means a banking company and includes — \n(i) a corresponding new bank, t he State Bank of India, a subsidiary bank, a co -operative bank, \nthe National Bank and regional rural bank;  \n(ii) a non -banking financial company as defined under clause ( f) of section 45 -I of the \nReserve Bank  of India Act, 1934 (2 of 1934);  \n(iii) a public f inancial insti tution referred to in section 4 A of the Companies Act,                      \n1956 (1 of 1956);  \n(iv) the financial corporation established by a State under section 3 of the State Financial \nCorporation  Act, 1951 (63 of 1951);  \n(v) the housing finance institution referred to in clause ( d) of section 2 of the National \nHousing Bank  Act, 1987 (53 of 1987);  \n(vi) the companies engaged in the business of credit cards and other similar cards and \ncompanies  dealing with distribution of credit in any othe r manner;  \n(vii) any other institution which the Reserve Bank may specify, from time to time, for the \npurposes of  this clause;  \n(g) “credit scoring” means a system which enables a credit institution to assess the credit  \nworthiness and  capacity of a borrower to repay his loan and advances and discharge his other \nobligations in respect of  credit facility availed or to be availed by him;  \n(h) “notification” means a notification published in the Official Gazette of India;  \n(i) “prescribed” means prescribed by rules  made under this Act;  \n(j) “regulations” means regulations made by the Reserve Bank under this Act;  \n(k) “Reserve Bank” means the Reserve B ank of India constituted under s ection 3 of the Reserve \nBank of  India Act, 1934 (2 of 1934);  \n(l) “specified user” means  any credit institution, credit information company being a member \nunder sub -section  (3) of section 15, and includes such other person or institution as may be specified \nby regulations  made, from time to time, by the Reserve Bank for the purpose of obtaining credit \ninformation from a  credit information company;  \n(m) words and expressions used herein and not defined in this Act but defined in the Reserve \nBank of India  Act, 1934 (2 of 1934) or the Banking Regulation Act, 1949 (10 of 1949) or the \nCompani es Act, 1956 (1  of 1956) shall have the meanings respectively assigned to them in those \nActs.  \nCHAPTER II  \nREGISTRATION OF CREDIT INFORMATION COMPANIES  \n3. Prohibition to commence or carry on business of credit information .—Save as otherwise \nprovided in this  Act, no company shall commence or carry on the business of credit information without \nobtaining a certificate of  registration from the Reserve Bank under this Act.  \n4. Application for registration .—(1) Every company which intends to commence the business of  \ncredit  information shall make an application for registration to the Reserve Bank in such form and manner \nas may be  specified by regulations.  ']"
43,Can a complaint be filed against a credit information company or credit institution or specified user in any court of law in respect of any contravention or default in respect of which any penalty has been imposed by the Reserve Bank?,"No, no complaint shall be filed against credit information company or credit institution or specified user, as the case may be, in any court of law in respect of any contravention or default in respect of which any penalty has been imposed by the Reserve Bank under this section.",,"['14 \n 24. Cognizance of offences .—(1) No court shall take cognizance of any offence committed by a \nmember of a  credit information company and punishable under section 23 except upon a complaint in \nwriting made by an officer  of the credit information company generally or specially authorised in writing \nin thi s behalf by the credit information  company or if so directed by the Reserve Bank so to do and no \ncourt other than that of a Metropolitan Magistrate or a  Judicial Magistrate of the first class or any court \nsuperior thereto shall try any such offence.  \nExplan ation .—For the purposes of this sub -section, “member of a credit information company” shall \nmean a  member referred to in section 15.  \n(2) No court shall take cog nizance of any offence committed by a credit information company \npunishable under  section 23 exc ept upon a complaint in writing made by an officer of the Reserve Bank \ngenerally or specially  authorised in writing in this behalf by the Reserve Bank and no court other than that \nof a Metropolitan Magistrate or a  Judicial Magistrate of the first class or any court superior thereto shall \ntry any such offence.  \n25. Power of Reserve Bank to impose penalty .—(1) Notwithstanding anything contained in section \n23, if a  contravention or default of the nature referred to in sub -section ( 2) of section 22 or sub-section ( 2) \nor sub -section ( 3) or sub -section ( 4) of section 23, as the case may be, is made by a credit information \ncompany or a credit institution  then, the Reserve Bank may impose on such credit information company \nor credit institution — \n(i) where t he contravention is of the nature referred to in sub -section ( 2) of section 22, a penalty \nnot exceeding one lakh rupees;  \n(ii) where the contravention is of the nature referred to in sub -section ( 2) or sub -section ( 3) of \nsection 23, a  penalty not exceeding one crore rupees;  \n(iii) where the contravention is of the nature referred to in sub -section ( 4) of section 23, a penalty \nnot exceeding one lakh rupees and where such contravention or default is continuing one, a further \npenalty  which may extend to five tho usand rupees for every day, after the first, during which the \ncontravention  or default continues.  \n(2) For the purpose of adjudging the penalty under sub -section ( 1), the Reserve Bank shall serve \nnotice on credit  information company or credit institution or  specified user, as the case may be, requiring \nit to show cause as to why  the amount mentioned in the notice should not be imposed as penalty and a \nreasonable opportunity of being heard  shall also be given to such credit information company or credit \ninstitution or specified user, as the case may be.  \n(3) No complaint shall be filed against credit information company or credit institution or specified \nuser, as the  case may be, in any court of law in respect of any contravention or default in respect of which  \nany penalty has been  imposed by the Reserve Bank under this section.  \n(4) Any penalty imposed by the Reserve Bank under this Act shall be payable within a period of \nfourteen days  from the date on which notice issued by the Reserve Bank demanding payment of  the sum \nis served on the credit  information company or credit institution or specified user, as the case may be, and \nin the event of failure of such  credit information company or credit institution or specified user to pay the \nsum within such period, may be levied on  a direction made by the principal civil court having jurisdiction \nin the area where the registered office of the credit  information company or credit institution or specified \nuser, being a company, is situated and in case of credit  institution  incorporated outside India, where its \nprincipal place o f business in India is situated : \nProvided that such direction under this sub -section shall be made only upon an application made in \nthis behalf  to the court by the Reserve Bank.  \n(5) The court which ma kes a direction under sub -section ( 4) shall issue a certificate mentioning \ntherein the sum  payable by a credit information company or credit institution or specified user, as the case \nmay be, and every such  certificate shall be enforceable in the same mann er as if it were a decree made by \nthe court in a civil suit.  \n(6) Where any complaint has been filed against credit information company or credit institution or \nspecified  user, as the case may be, in any court in respect of the contravention or default of t he nature \nreferred to in sub -section  (2) of section 22 or sub -section ( 2) or sub -section ( 3) or sub -section ( 4) of 15 \n section 23, then, no proceedings for the  imposition of any penalty on the credit information company or \ncredit institution or specified user shall be taken under  this section.  \n26. Application of fines .—A court imposing any fine under this Act may direct that the whole or any \npart thereof shall be applied in or towards payment of the costs of the proceedings, or for such purposes as \nmay be direc ted by the court.  \nCHAPTER VIII  \nMISCELLANEOUS  \n27. Power of Reserve Bank to specify maximum amount of fees .—The Reserve Bank may, \nspecify, by  regulations the maximum amount of fees leviable under sub -section ( 3) of section 14 for \nproviding information to the  specified users and for admissions of credit institutions or credit information \ncompanies as a member of a credit  information company.  \n28. Disclosure of information before any court or tribunal or authority .—No chairperson, \ndirector, member,  auditor, advi ser, officer or other employee or agent employed in the business of a credit \ninformation company or in  the business of a specified user shall, except for the purposes of this Act or \nwhen required to do so by any other law in  force or court or tribunal or a uthority, disclose any \ninformation to any person.  \n29. Obligations as to fidelity and secrecy .—(1) Every credit information company shall observe, \nexcept as  otherwise required by law, the practices and usages customary among credit information \ncompanies and  it shall not  divulge any information relating to, or to the affairs of, its members or \nspecified users.  \n(2) Every chairperson, director, member, auditor, adviser, officer or other employee of a credit \ninformation  company shall, before entering upon his du ties, make a declaration of fidelity and secrecy in \nthe form, as may be  prescribed in this regard.  \nExplanation .—For the purposes of this section and section 30, the terms “practices and usages \ncustomary”  means such practices and usages which, are generally  followed by credit information \ncompanies or may develop in  due course in relation to their functions, in pursuance of the provisions of \nthis Act, rules and regulations made and  directions issued thereunder from time to time in pursuance \nthereof.  \n30. Prote ction of action taken in good faith .—(1) No suit or other legal proceedings or prosecution \nshall lie  against the Reserve Bank or the Central Government or credit information company or credit \ninstitution, or their  chairperson, director, member, auditor, ad viser, officer or other employee, or agent or \nany person authorised by the  Reserve Bank or the Central Government or credit information company or \ncredit institution to discharge any function  under this Act, for any loss or damage caused or as is likely to  \nbe caused by anything which is in good faith done or  intended to be done, in pursuance of this Act or any \nother law for the time being in force.  \n(2) Nothing contained in sub -section ( 1) shall affect the right of any person to claim damages against \na credi t information company, a credit institution or their chairperson, director, member, auditor, adviser, \nofficer or other  employee or agents, as the case may be, in respect of loss caused to him on account of any \nsuch disclosure made by  anyone of them and whi ch is unauthorised or fraudulent or contrary to provisions \nof this Act, or practices or usages  customary among them.  \n31. Bar of jurisdiction .—No court or authority shall have, or be entitled to exercise, any jurisdiction, \npowers or  authority, except the Su preme Court and a High Court exercising jurisdiction under articles 32, \n226 and 227 of the  Constitution, in relation to the matters referred to in sections 4, 5, 6, 7 and 18.  \n32. Power of Reserve Bank to exempt in certain cases .—(1) The Central Government may, on the  \nrecommendation of the Reserve Bank, by notification in the Official Gazette, direct that any or all of the \nprovisions of  this Act shall not apply to any credit information company or a credit institution, as the case \nmay be, either generally  or for such period and subject to such exceptions or modifications, as may be \nmentioned in that notification.  \n(2) A copy of every notification proposed to be issued under sub -section ( 1), shall be laid in draft \nbefore each  House of Parliament, while it is in session, for a total period of thirty days which may be ']"
44,What is the composition of the board of directors of a credit information company?,"The board shall consist of not less than fifty percent directors who are persons having experience in banking, finance, or any other field relevant to the activities of a credit information company.",,"['5 \n (2) Every credit information company, in existence on the commencement of this Act, before the \nexpiry of six  months from such commencement, shall apply in writing to the Reserve Bank for obtaining \na certificate of registration  under this Act : \nProvided that in the case of a credit information company in existence on the commencement of this \nAct, nothing in section  3 shall be deemed to prohibit such credit information company from carrying on \nthe business of a  credit information company, until it is granted a certificate of registration or is by notice \nin writing informed by the  Reserve Bank that a certificate of re gistration cannot be granted to it.  \n5. Grant of certificate of registration .—(1) The Reserve Bank may, for the purpose of considering \nthe application of a company for grant of a certificate of registration to commence or carry on the \nbusiness of credit  information, require to be satisfied, by an inspection of records or books of such \ncompany or otherwise that the  following conditions are fulfilled, namely: — \n(a) that the applicant company has minimum capital structure referred to in section 8;  \n(b) that the g eneral character of the management or the proposed management of the applicant \ncompany  shall not be prejudicial to the interest of its specified users, clients or borrowers, or other \ncredit  information companies;  \n(c) that any other condition, the fulfilmen t of which in the opinion of the Reserve Bank, shall be \nnecessary  to ensure that the commencement or carrying on of the business of credit information by \nthe applicant  company shall not be detrimental or prejudicial to the public interest or banking policy  \nor credit system  or its specified users or clients or borrowers or other credit information companies or \nothers who would  provide credit information to the credit information companies.  \n(2) The Reserve Bank may, after being satisfied that the conditions a s referred to in sub -section ( 1) \nare fulfilled,  grant a certificate of registration to the applicant company to commence or carry on the \nbusiness of credit information,  subject to such conditions which it may consider fit to impose and if the \ncompany fails to fulfil any of such conditions  or any of the provisions of this Act, the application of  the \ncompany shall be rejected:  \nProvided that no application shall be rejected unless the applicant has been given an opportunity of \nbeing heard.  \n(3) The Reserve Bank may, having regard to the available business of credit information, the potential \nand scope  for expansion of existing credit information companies and other relevant fa ctors, determine \nthe total number of the  credit information companies which may be granted the certificates of registration \nfor carrying on the business of  credit information : \nProvided that the total number of such credit information companies so determine d may, on being \nsatisfied by  the Reserve Bank, that there is change in available business of credit information, potential \nand scope for expansion  of existing credit information companies and other relevant factors relating \nthereto, be reviewed by the Rese rve Bank.  \n6. Power of Reserve Bank to cancel certificate of registration .—(1) The Reserve Bank may cancel \na certificate of registration granted to a credit information company under sub -section ( 2) of section 5 if \nsuch company, — \n(i) ceases to carry on the business of credit information; or  \n(ii) has failed to comply with any of the conditions subject to which the certificate of registration \nhas been  granted to it; or  \n(iii) at any time fails to fulfil any of the conditions referred to in sub -clauses ( a) to ( c) of                  \nsub-section ( 1) or sub-section ( 2) of section 5; or  \n(iv) fails — \n(a) to comply with the provisions of any law for the time being in force or any direction \nissued by the  Reserve Bank under the provisions of this Act; or  \n(b) to submit or  offer for inspection its books of account and other relevant documents when \nso demanded by the officers, persons or agency referred to in sub -section ( 1) of section 12.  6 \n (2) Before cancelling the certificate of registration granted to a credit information company under this \nsection on  the ground that the company has failed to comply with the conditions specified in clauses ( a) to \n(c) of sub -section ( 1) or sub -section ( 2) of section 5 or the provisions of any other law for the time being \nin force or directio ns issued under  this Act, the Reserve Bank, shall grant time to such company on such \nterms as the Reserve Bank may deem  appropriate for taking necessary steps to comply with such \ndirections or provisions or fulfilment of such conditions,  within such time : \nProvided that if the Reserve Bank is of the opinion that the delay in cancelling the certificate of \nregistration of  such company shall be prejudicial or detrimental to the public interest or banking policy or \ncredit system or borrowers  or other credit info rmation companies, the Reserve Bank may cancel the \ncertificate of registration without granting  time as provided in sub -section ( 2). \n(3) No order of cancellation of certificate of registration, granted to a credit information company, \nshall be made  by the Reserve Bank unless such company has been given a reasonable opportunity of \nbeing heard.  \n7. Appeal against order of Reserve Bank .—(1) A credit information company aggrieved by the \norder of  rejection of an application for grant of certificate of registratio n under section 5 or cancellation of \ncertificate of  registration under section 6, may prefer an appeal to the Central Government or any other \nauthority or tribunal which  may be designated by rules made by the Central Government, within a period \nof thirty d ays from the date on which  such order of rejection or cancellation, as the case may be, is \ncommunicated to the credit information company.  \n(2) The decision of the Central Government or the authority or tribunal referred to in sub -section ( 1) \nwhere an  appea l has been preferred to it under sub -section ( 1), or of these Reserve Bank where no such \nappeal has been  preferred, shall be final : \nProvided that before making any order of rejection of an appeal, the applicant company or the credit \ninformation  company, as  the case may be, shall be given a reasonable opportunity of being heard.  \n8. Requirement as to minimum capital .—(1) The authorised capital of every credit information \ncompany shall  be a minimum of thirty crores : \nProvided that the Reserve Bank may, by notif ication, increase the minimum amount of authorised \ncapital to any  amount not exceeding fifty crores.  \n(2) The issued capital of every credit information company shall  not be less than twenty crores : \nProvided that the Reserve Bank may, by notification, increase the issued capital to any amount not \nexceeding the  minimum amount of authorised capital as referred to in sub -section ( 1). \n(3) The minimum paid up capital of every credit information company at any time shall not be less \nthan seventy -five per cent . of the issued capital.  \nCHAPTER III  \nMANAGEMENT OF CREDIT INFORMATION COMPANIES  \n9. Management of credit information company .—(1) Notwithstanding anything contained in any \nlaw for the  time being in force, or in any contract to the contrary, every credit inf ormation company in \nexistence on the  commencement of this Act, or which comes into existence thereafter, shall have one of \nits directors, who may be  appointed on whole -time or on a part -time basis as chairperson of its board, and \nwhere he is appointed on w hole-time basis as chairperson of its board, he shall be entrusted with the \nmanagement of the whole of the affairs of the credit  information company:  \nProvided that the chairperson of the board of the credit information company shall exercise his \npowers sub ject to  the superintendence, control and directions of the board.  \n(2) Where a chairperson is appointed on a part -time basis, the management of whole of the affairs of \nthe credit  information company shall be entrusted to a managing director or, a whole -time director by \nwhatever name called,  who shall exercise his powers subject to the superintendence, control and \ndirections of the board.  \n(3) In addition to the chairperson or managing director or whole -time director, by whatever name \ncalled, the  board of directors shall consist of not less than fifty per cent . directors who shall be persons ']"
45,What is the time frame within which an existing credit information company must apply for a certificate of registration under this Act?,Six months from the commencement of this Act,,"['5 \n (2) Every credit information company, in existence on the commencement of this Act, before the \nexpiry of six  months from such commencement, shall apply in writing to the Reserve Bank for obtaining \na certificate of registration  under this Act : \nProvided that in the case of a credit information company in existence on the commencement of this \nAct, nothing in section  3 shall be deemed to prohibit such credit information company from carrying on \nthe business of a  credit information company, until it is granted a certificate of registration or is by notice \nin writing informed by the  Reserve Bank that a certificate of re gistration cannot be granted to it.  \n5. Grant of certificate of registration .—(1) The Reserve Bank may, for the purpose of considering \nthe application of a company for grant of a certificate of registration to commence or carry on the \nbusiness of credit  information, require to be satisfied, by an inspection of records or books of such \ncompany or otherwise that the  following conditions are fulfilled, namely: — \n(a) that the applicant company has minimum capital structure referred to in section 8;  \n(b) that the g eneral character of the management or the proposed management of the applicant \ncompany  shall not be prejudicial to the interest of its specified users, clients or borrowers, or other \ncredit  information companies;  \n(c) that any other condition, the fulfilmen t of which in the opinion of the Reserve Bank, shall be \nnecessary  to ensure that the commencement or carrying on of the business of credit information by \nthe applicant  company shall not be detrimental or prejudicial to the public interest or banking policy  \nor credit system  or its specified users or clients or borrowers or other credit information companies or \nothers who would  provide credit information to the credit information companies.  \n(2) The Reserve Bank may, after being satisfied that the conditions a s referred to in sub -section ( 1) \nare fulfilled,  grant a certificate of registration to the applicant company to commence or carry on the \nbusiness of credit information,  subject to such conditions which it may consider fit to impose and if the \ncompany fails to fulfil any of such conditions  or any of the provisions of this Act, the application of  the \ncompany shall be rejected:  \nProvided that no application shall be rejected unless the applicant has been given an opportunity of \nbeing heard.  \n(3) The Reserve Bank may, having regard to the available business of credit information, the potential \nand scope  for expansion of existing credit information companies and other relevant fa ctors, determine \nthe total number of the  credit information companies which may be granted the certificates of registration \nfor carrying on the business of  credit information : \nProvided that the total number of such credit information companies so determine d may, on being \nsatisfied by  the Reserve Bank, that there is change in available business of credit information, potential \nand scope for expansion  of existing credit information companies and other relevant factors relating \nthereto, be reviewed by the Rese rve Bank.  \n6. Power of Reserve Bank to cancel certificate of registration .—(1) The Reserve Bank may cancel \na certificate of registration granted to a credit information company under sub -section ( 2) of section 5 if \nsuch company, — \n(i) ceases to carry on the business of credit information; or  \n(ii) has failed to comply with any of the conditions subject to which the certificate of registration \nhas been  granted to it; or  \n(iii) at any time fails to fulfil any of the conditions referred to in sub -clauses ( a) to ( c) of                  \nsub-section ( 1) or sub-section ( 2) of section 5; or  \n(iv) fails — \n(a) to comply with the provisions of any law for the time being in force or any direction \nissued by the  Reserve Bank under the provisions of this Act; or  \n(b) to submit or  offer for inspection its books of account and other relevant documents when \nso demanded by the officers, persons or agency referred to in sub -section ( 1) of section 12.  6 \n (2) Before cancelling the certificate of registration granted to a credit information company under this \nsection on  the ground that the company has failed to comply with the conditions specified in clauses ( a) to \n(c) of sub -section ( 1) or sub -section ( 2) of section 5 or the provisions of any other law for the time being \nin force or directio ns issued under  this Act, the Reserve Bank, shall grant time to such company on such \nterms as the Reserve Bank may deem  appropriate for taking necessary steps to comply with such \ndirections or provisions or fulfilment of such conditions,  within such time : \nProvided that if the Reserve Bank is of the opinion that the delay in cancelling the certificate of \nregistration of  such company shall be prejudicial or detrimental to the public interest or banking policy or \ncredit system or borrowers  or other credit info rmation companies, the Reserve Bank may cancel the \ncertificate of registration without granting  time as provided in sub -section ( 2). \n(3) No order of cancellation of certificate of registration, granted to a credit information company, \nshall be made  by the Reserve Bank unless such company has been given a reasonable opportunity of \nbeing heard.  \n7. Appeal against order of Reserve Bank .—(1) A credit information company aggrieved by the \norder of  rejection of an application for grant of certificate of registratio n under section 5 or cancellation of \ncertificate of  registration under section 6, may prefer an appeal to the Central Government or any other \nauthority or tribunal which  may be designated by rules made by the Central Government, within a period \nof thirty d ays from the date on which  such order of rejection or cancellation, as the case may be, is \ncommunicated to the credit information company.  \n(2) The decision of the Central Government or the authority or tribunal referred to in sub -section ( 1) \nwhere an  appea l has been preferred to it under sub -section ( 1), or of these Reserve Bank where no such \nappeal has been  preferred, shall be final : \nProvided that before making any order of rejection of an appeal, the applicant company or the credit \ninformation  company, as  the case may be, shall be given a reasonable opportunity of being heard.  \n8. Requirement as to minimum capital .—(1) The authorised capital of every credit information \ncompany shall  be a minimum of thirty crores : \nProvided that the Reserve Bank may, by notif ication, increase the minimum amount of authorised \ncapital to any  amount not exceeding fifty crores.  \n(2) The issued capital of every credit information company shall  not be less than twenty crores : \nProvided that the Reserve Bank may, by notification, increase the issued capital to any amount not \nexceeding the  minimum amount of authorised capital as referred to in sub -section ( 1). \n(3) The minimum paid up capital of every credit information company at any time shall not be less \nthan seventy -five per cent . of the issued capital.  \nCHAPTER III  \nMANAGEMENT OF CREDIT INFORMATION COMPANIES  \n9. Management of credit information company .—(1) Notwithstanding anything contained in any \nlaw for the  time being in force, or in any contract to the contrary, every credit inf ormation company in \nexistence on the  commencement of this Act, or which comes into existence thereafter, shall have one of \nits directors, who may be  appointed on whole -time or on a part -time basis as chairperson of its board, and \nwhere he is appointed on w hole-time basis as chairperson of its board, he shall be entrusted with the \nmanagement of the whole of the affairs of the credit  information company:  \nProvided that the chairperson of the board of the credit information company shall exercise his \npowers sub ject to  the superintendence, control and directions of the board.  \n(2) Where a chairperson is appointed on a part -time basis, the management of whole of the affairs of \nthe credit  information company shall be entrusted to a managing director or, a whole -time director by \nwhatever name called,  who shall exercise his powers subject to the superintendence, control and \ndirections of the board.  \n(3) In addition to the chairperson or managing director or whole -time director, by whatever name \ncalled, the  board of directors shall consist of not less than fifty per cent . directors who shall be persons ']"
46,What is the duty of a credit institution under Section 15 of the Act?,"Every credit institution in existence on the commencement of this Act, before the expiry of three months from such commencement or within such extended period, as the Reserve Bank may allow on its application and subject to being satisfied about the reason for extension, shall become member of at least one credit information company.",,"['9 \n may be, making an inspection  under sub -section ( 1) all such books, accounts and other documents in his \ncustody or power and to furnish him with  any statement and information relating to the affairs of such \ncredit information com pany, credit institution and  specified user, as the said officer or person or agency \nmay require of him within such time as the said officer or  person or agency may specify.  \n(3) Any officer of the Reserve Bank or person or an agency making an inspection un der                 \nsub-section  (1) may  examine on oath any director or other officer or employee of the credit information \ncompany, credit institution and  specified user, in relation to their business, and may administer an oath \naccordingly.  \n(4) The expen ses of, or incidental to, the inspection under sub -section ( 1) by any person or an agency \nreferred to  in sub -section ( 1) shall be borne by the concerned credit information company or credit \ninstitution or specified user,  as the case may be.  \nCHAPTER IV  \nAUDITORS  \n13. Powers and duties of auditors .—(1) It shall be the duty of an auditor of a credit information \ncompany to  inquire whether or not the credit information company has furnished to the Reserve Bank \nsuch statements,  information or particulars relatin g to its business as are required to be furnished under \nthis Act and the auditor shall,  except where he is satisfied on such inquiry that the credit information \ncompany has furnished such a statement ,  information or particulars, make a report to the Reser ve Bank in \nthis regard.  \n(2) The Reserve Bank may, on being satisfied that it is necessary so to do, in the public interest or in \nthe interest  of credit system, issue directions in particular or in general with respect to audit of the credit \ninformation company  and submission of the report to the Reserve Bank.  \n(3) Where the Reserve Bank is of the opinion that it is necessary so to do in the public interest or in \nthe interest  of the credit information company or its members, or in the interest of credit sy stem or credit \ninstitution or its  borrower or client so to do, it may, at any time, by an order, direct that a special audit of \nthe accounts of the credit  information company in relation to any such transaction or class of transactions \nor for such period o r periods, as may  be mentioned in the order, shall be conducted and the Reserve Bank \nmay by such order or by a separate order either  appoint an auditor or auditors or direct the auditor of the \ncredit information company himself to conduct such special  audit and the auditor shall comply with such \ndirections and make a report of such audit to the Reserve Bank and  forward a copy thereof to the credit \ninformation company.  \n(4) The remuneration of the auditors as may be fixed by the Reserve Bank, having regard to  the \nnature and  volume of work involved in the audit and the expenses of, or incidental to, the audit, shall be \nborne by the credit  information company so audited.  \nCHAPTER V  \nFUNCTIONS OF CREDIT INFORMATION COMPANIES  \n14. Functions of a credit information co mpany .—(1) A credit information company may engage in \nany one or  more of the following forms of business, namely: — \n(a) to collect, process and collate information on trade, credit and financial standing of the \nborrowers of the  credit institution which is a  member of the credit information company;  \n(b) to provide credit information to its specified users or to the specified users of any other credit  \ninformation company or to any other credit information company being its member;  \n(c) to provide credit scoring  to its specified users or specified users of any other credit \ninformation company  or to other credit information companies being its members;  \n(d) to undertake research project;  \n(e) to undertake any other form of business which the Reserve Bank may, specif y by regulations \nas a form  of business in which it is lawful for a credit information company to engage.  \n(2) No credit information company shall engage in any form of business other than those referred to \nin sub -section  (1). 10 \n (3) Any credit information comp any for the purposes of carrying on the business of credit information \nmay— \n(a) register credit institutions and other credit information companies, at their option as its \nmember, subject  to such terms and conditions as may be pre -determined and disclosed by such credit \ninformation  company;  \n(b) charge such reasonable amount of fees, as it may deem appropriate not exceeding the \nmaximum fee, as  may be specified under section 27, for furnishing credit information to a specified \nuser;  \n(c) generally  to do all such other acts and perform such other functions as are necessary to \nfacilitate proper  conduct of its affairs, business and functions in accordance with the provisions of this \nAct. \n15. Credit Institution to be member of a credit information comp any.—(1) Every credit \ninstitution in  existence on the commencement of this Act, before the expiry of three months from such \ncommencement or within  such extended period, as the Reserve Bank may allow on its application and \nsubject to being satisfied about t he reason  for extension, shall become member of at least one credit \ninformation company.  \n(2) Every credit institution which comes into existence after the commencement of this Act, before \nthe expiry of  three months from its coming into existence, or within  such extended period, as the Reserve \nBank may allow on its  application and subject to being satisfied about the reason for extension, shall \nbecome member of at least one credit  information company.  \n(3) A credit information company may, at its option, beco me member of another credit information \ncompany.  \n(4) No credit information company shall refuse to register a credit institution or another credit \ninformation  company as its member without providing reasonable opportunity of being heard to such \ncredit inst itution or credit  information company, whose application it proposes to reject and recording \nreasons for such rejection and a copy of  such order of rejection shall be forwarded to the Reserve Bank.  \n(5) A credit institution or credit information company agg rieved by the order of rejection of its \napplication for its  registration as a member of a credit information company under sub -section ( 4) may \nprefer an appeal to the Reserve  Bank, within a period of thirty days from the date on which such order of \nrejection was communicate d to it : \nProvided that the Reserve Bank may, if it is satisfied that the appellant was prevented by sufficient \ncause from  filing the appeal within the said period, allow it to be filed within a further period not \nexceeding thirty days.  \n(6) On receipt of an appeal under sub -section ( 5), the Reserve Bank, after giving the appellant and \nother  concerned parties, an opportunity of being heard, pass such order as it deems fit.  \n(7) The decision of the Reserve Bank where an appeal has been  preferred to it under sub -section ( 5) \nshall be  final and the order of the credit information company under sub -section ( 4) shall be final after the \nexpiry of the said  period of thirty days where no appeal has been preferred under that sub -section to the \nReserve Bank.  \n(8) Every specified user shall be entitled to obtain credit information for its use from the credit \ninformation  company of which such specified user is a member.  \n16. Failure to become a member of a credit information company .—(1) Where a credi t \ninstitution — \n(a) abstains from becoming a member of at least one credit information company; or  \n(b) at any time is not a member of any credit information company,  \nthe Reserve Bank suo moto  or on a complaint from a credit information company may, direct such credit \ninstitution to  take necessary steps within such time, as it may specify to become a member of a credit \ninformation company.  11 \n (2) In case a credit institution fails to comply with t he directions of the Reserve Bank under           \nsub-section ( 1), to become member of at least one credit information company, the Reserve Bank may, \nwithout prejudice to the  provisions of this Act, intimate such failure to any other authority for taking s uch \naction as it may deem fit.  \n17. Collection and furnishing of credit information .—(1) A credit information company or any \nperson  authorised in that behalf by the company may, by notice in writing, in such form, as may be \nspecified by regulations  made by the Reserve Bank or as near thereto, require its members being credit \ninstitution or credit information  company, to furnish such credit information as it may deem necessary in \naccordance with the provisions of this Act.  \n(2) Every credit institution which i s member of the credit information company and every credit \ninformation  company which is a member of other credit information company shall, on receipt of notice \nunder sub -section ( 1), provide credit information to the credit information company of which i t is a \nmember, within such period as may be  specified in the notice.  \n(3) Every credit information company shall provide for such purpose, as may be specified by \nregulations, the  credit information received under sub -section ( 2), to its specified user on receipt of \nrequest from him in accordance  with the provisions of this Act and directions issued thereunder by the \nReserve Bank from time to time in this behalf.  \n(4) No credit information received under this Act, — \n(a) by the credit information company, shal l be disclosed to any person other than its specified \nuser; or  \n(b) by the specified user, shall be disclosed to any other person;  \n(c) by the credit information company or specified user, shall be disclosed for any other purpose \nthan as  permitted or require d by any other law for the time being in force.  \n18. Settlement of dispute .—(1) Notwithstanding anything contained in any law for the time being in \nforce, if  any dispute arises amongst, credit information companies, credit institutions, borrowers and \nclient s on matters relating  to business of credit information and for which no remedy has been provided \nunder this Act, such disputes shall be  settled by conciliation or arbitration as provided in the Arbitration \nand Conciliation Act, 1996 (26 of 1996), as if th e parties to the dispute have consented in writing for \ndetermination of such dispute by conciliation or arbitration and  provisions of that Act shall apply \naccordingly.  \n(2) Where a dispute has been referred to arbitration under sub -section ( 1), the same sha ll be settled or  \ndecided, — \n(a) by the arbitrator to be appointed by the Reserve Bank;  \n(b) within three months of making a referenc e by the parties to the dispute : \nProvided that the arbitrator may, after recording the reasons therefor, extend the said period up to a \nmaximum  period of six months : \nProvided further that, in an appropriate case or cases, the Reserve Bank may, if it considers necessary \nto do so  (reasons to be recorded in writing), direct the parties to the dispute to appoint an arbitrator in  \naccordance with the  provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996), for settlement \nof their dispute in accordance  with the provisions of that Act.  \n(3) Save as otherwise provided under this Act, the provisions of the Arbitration and Conciliation Act, \n1996 (26  of 1996) shall apply to all arbitration under this Act as if the proceedings for arbitration were \nreferred for settlement  or decision under the provisions of the Arbitration and Conciliation Act, 1996.  \nCHAPTER VI  \nINFORMATION PRIV ACY PRINCIPLES AND  FURNISHING OF CREDIT INFORMATION  \n19. Accuracy and security of credit information .—A credit information company or credit \ninstitution or  specified user, as the case may be, in possession or control of credit information, shall take \nsuch s teps (including  security safeguards) as may be prescribed, to ensure that the data relating to the ']"
47,What are the penalties for wilfully making a false statement or omitting a material statement in any return or document required under the Act?,The penalty is imprisonment for a term of up to one year and a fine.,,"['12 \n credit information maintained by them  is accurate, complete, duly protected against any loss or \nunauthorised access or use or unauthorised disclosure thereof.  \n20. Privacy principles .—Every credit information company, credit institution and specified user, \nshall adopt the  following privacy principles in relation to collection, processing, collating, recording, \npreservation, secrecy, sharing  and usage of credit information, namely: — \n(a) the principles — \n(i) which may be followed by every credit institution for collection of information from its \nborrowers  and clients and by every credit information company, for collection of information \nfrom its  member credi t institutions or credit information companies, for processing, recording, \nprotecting  the data relating to credit information furnished by, or obtained from, their member \ncredit  institutions or credit information companies, as the case may be, and sharing of such data \nwith specified users;  \n(ii) which may be adopted by every specified user for processing, recording, preserving and \nprotecting  the data relating to credit information furnished, or received, as the case may be, by it;  \n(iii) which may be adopted by every credit information company for allowing access to \nrecords  containing credit information of borrowers and clients and alteration of such records in \ncase of  need to do so;  \n(b) the purpose for which the credit information may be used, restriction on such use and \ndisclosure thereof;  \n(c) the extent of obligation to check accuracy of credit information before furnishing of such \ninformation to  credit information companies or credit institutions or specified users, as the case may \nbe; \n(d) preservation of c redit information maintained by every credit information company, credit \ninstitution,  and specified user as the case may be (including the period for which such information \nmay be  maintained, manner of deletion of such information and maintenance of record s of credit \ninformation);  \n(e) networking of credit information companies, credit institutions and specified users through \nelectronic  mode;  \n(f) any other principles and procedures relating to credit information which the Reserve Bank may \nconsider  necessary and appropriate and may be specified by regulations.  \n21. Alteration of credit information files and credit reports .—(1) Any person, who applies for \ngrant or  sanction of credit facility, from any credit institution, may request to such institution to furnis h \nhim a copy of the  credit information obtained by such institution from the credit information company.  \n(2) Every credit institution shall, on receipt of request under sub -section ( 1), furnish to the person \nreferred to in  that sub -section a copy of the cr edit information subject to payment of such charges, as may \nbe specified by  regulations, by the Reserve Bank in this regard.  \n(3) If a credit information company or specified user or credit institution in possession or control of \nthe credit  information, has  not updated the information maintained by it, a borrower or client may request \nall or any of them to  update the information; whether by making an appropriate correction, or addition or \notherwise, and on such request  the credit information company or the s pecified user or the credit \ninstitution, as the case may be, shall take appropriate  steps to update the credit information within thirty \ndays after being requested to do so : \nProvided that the credit information company and the specified user shall make the  correction, \ndeletion or  addition in the credit information only after such correction, deletion or addition has been \ncertified as correct by the  concerned credit institution : \nProvided further that no such correction, deletion or addition shall be made in the credit information if \nany dispute relating to such correction, deletion or addition is pending before any arbitrator or tribunal or \ncourt and in  cases where such dispute is pending, the entries in the books of the concerned credit \ninstitution shall be taken into  account for the purpose of credit information.  13 \n 22. Unauthorised access to credit information .—(1) No person shall have access to credit \ninformation in the  possession or control of a credit information company or a credit institution or a \nspecified user unless the access is  authorised by this Act or any other law for the time being in force or \ndirected to do so by any court or tribunal and any  such access to credit information without such \nauthorisation or direction shall be considered as a n unauthorised access  to credit information.  \n(2) Any person who obtains unauthorised access to credit information as referred to in sub -section ( 1) \nshall be  punishable with fine which may extend to one lakh rupees in respect of each offence and if he \nconti nues to have such  unauthorised access, with further fine which may extend to ten thousand rupees \nfor every day on which the default  continues and such unauthorised credit information shall not be taken \ninto account for any purpose.  \nCHAPTER VII  \nOFFENCES AND  PENALTIES  \n23. Offences and penalties .—(1) Whoever, in any return or other document or in any information \nrequired or  furnished by, or under, or for the purposes of, any provision of this Act, wilfully makes a \nstatement which is false in  any material parti cular, knowing it to be false, or wilfully omits to make a \nmaterial statement, shall be punishable with  imprisonment for a term which may extend to one year and \nshall also be liable to fine.  \n(2) Every credit information company or a credit institution or a ny specified user, wilfully, \nperforming any act or  engaging in any practice, in breach of any of  the principles referred to in s ection 20, \nshall be punishable with fine not  exceeding one crore rupees.  \n(3) Any credit information company or credit institution or specified user wilfully providing to any \nother credit  information company or credit institution or specified user or borrower or client, as the case \nmay be, credit  information which is false in any material particular, knowing it to be false , or wilfully \nomits to make a material  statement, shall be punishable with fine which may extend to one crore rupees.  \n(4) Any person who contravenes any provision of this Act or of any rule or order made thereunder, or \nobstructs  the lawful exercise of any power conferred by or under this Act, or makes default in complying \nwith any requirement  of this Act or of any rule or order made or direction issued thereunder, shall, if no \nspecific provision is made under  this Act for punishment of such contravention, o bstruction or default, be \npunishable with fine which may extend to  one lakh rupees and where a contravention or default is a \ncontinuing one, with a further fine which may extend to five  thousand rupees for every day during which \nthe contravention or defaul t continues.  \n(5) Where a contravention or default has been committed by a credit information company or credit \ninstitution  or specified user, as the case may be, every person who, at the time the contravention or default \nwas committed, was  in charge of, an d was responsible to the credit information company or credit \ninstitution or specified user for the  conduct of its business, shall be deemed to be guilty of the \ncontravention or default and shall be liable to be proceeded  against and punished accordingly : \nProvided that nothing contained in this sub -section shall render any such person liable to any \npunishment  provided in this Act if he proves that the contravention or default was committed without his \nknowledge or that he  exercised all due diligence to prev ent the contravention or default.  \n(6) Notwithstanding anything contained in sub -section (5), where a contravention or default has been \ncommitted  by a credit information company or credit institution or specified user, as the case may be, and \nit is proved t hat the  same was committed with the consent or connivance of, or is attributable to any gross \nnegligence on the part of its  chairperson, managing director, any other director, manager, secretary or \nother officer of the credit information  company or the cre dit institution, such chairperson, managing \ndirector, any other director, manager, secretary or other  officer shall also be deemed to be guilty of that \ncontravention or default and shall be liable to be proceeded against  and punished accordingly.  \nExplanati on.—For the purposes of this section, — \n(a) “company” means any body corporate and includes a firm or other association of individual, \nand \n(b) “director”, in relation to a firm, means a partner in the firm.  ']"
48,What is the procedure for canceling a certificate of registration granted to a credit information company?,"The Reserve Bank may cancel a certificate of registration if the company ceases to carry on the business of credit information, fails to comply with conditions subject to which the certificate was granted, or fails to fulfill any of the conditions referred to in section 5. The Reserve Bank must grant the company a reasonable opportunity to be heard before canceling the certificate.",,"['5 \n (2) Every credit information company, in existence on the commencement of this Act, before the \nexpiry of six  months from such commencement, shall apply in writing to the Reserve Bank for obtaining \na certificate of registration  under this Act : \nProvided that in the case of a credit information company in existence on the commencement of this \nAct, nothing in section  3 shall be deemed to prohibit such credit information company from carrying on \nthe business of a  credit information company, until it is granted a certificate of registration or is by notice \nin writing informed by the  Reserve Bank that a certificate of re gistration cannot be granted to it.  \n5. Grant of certificate of registration .—(1) The Reserve Bank may, for the purpose of considering \nthe application of a company for grant of a certificate of registration to commence or carry on the \nbusiness of credit  information, require to be satisfied, by an inspection of records or books of such \ncompany or otherwise that the  following conditions are fulfilled, namely: — \n(a) that the applicant company has minimum capital structure referred to in section 8;  \n(b) that the g eneral character of the management or the proposed management of the applicant \ncompany  shall not be prejudicial to the interest of its specified users, clients or borrowers, or other \ncredit  information companies;  \n(c) that any other condition, the fulfilmen t of which in the opinion of the Reserve Bank, shall be \nnecessary  to ensure that the commencement or carrying on of the business of credit information by \nthe applicant  company shall not be detrimental or prejudicial to the public interest or banking policy  \nor credit system  or its specified users or clients or borrowers or other credit information companies or \nothers who would  provide credit information to the credit information companies.  \n(2) The Reserve Bank may, after being satisfied that the conditions a s referred to in sub -section ( 1) \nare fulfilled,  grant a certificate of registration to the applicant company to commence or carry on the \nbusiness of credit information,  subject to such conditions which it may consider fit to impose and if the \ncompany fails to fulfil any of such conditions  or any of the provisions of this Act, the application of  the \ncompany shall be rejected:  \nProvided that no application shall be rejected unless the applicant has been given an opportunity of \nbeing heard.  \n(3) The Reserve Bank may, having regard to the available business of credit information, the potential \nand scope  for expansion of existing credit information companies and other relevant fa ctors, determine \nthe total number of the  credit information companies which may be granted the certificates of registration \nfor carrying on the business of  credit information : \nProvided that the total number of such credit information companies so determine d may, on being \nsatisfied by  the Reserve Bank, that there is change in available business of credit information, potential \nand scope for expansion  of existing credit information companies and other relevant factors relating \nthereto, be reviewed by the Rese rve Bank.  \n6. Power of Reserve Bank to cancel certificate of registration .—(1) The Reserve Bank may cancel \na certificate of registration granted to a credit information company under sub -section ( 2) of section 5 if \nsuch company, — \n(i) ceases to carry on the business of credit information; or  \n(ii) has failed to comply with any of the conditions subject to which the certificate of registration \nhas been  granted to it; or  \n(iii) at any time fails to fulfil any of the conditions referred to in sub -clauses ( a) to ( c) of                  \nsub-section ( 1) or sub-section ( 2) of section 5; or  \n(iv) fails — \n(a) to comply with the provisions of any law for the time being in force or any direction \nissued by the  Reserve Bank under the provisions of this Act; or  \n(b) to submit or  offer for inspection its books of account and other relevant documents when \nso demanded by the officers, persons or agency referred to in sub -section ( 1) of section 12.  6 \n (2) Before cancelling the certificate of registration granted to a credit information company under this \nsection on  the ground that the company has failed to comply with the conditions specified in clauses ( a) to \n(c) of sub -section ( 1) or sub -section ( 2) of section 5 or the provisions of any other law for the time being \nin force or directio ns issued under  this Act, the Reserve Bank, shall grant time to such company on such \nterms as the Reserve Bank may deem  appropriate for taking necessary steps to comply with such \ndirections or provisions or fulfilment of such conditions,  within such time : \nProvided that if the Reserve Bank is of the opinion that the delay in cancelling the certificate of \nregistration of  such company shall be prejudicial or detrimental to the public interest or banking policy or \ncredit system or borrowers  or other credit info rmation companies, the Reserve Bank may cancel the \ncertificate of registration without granting  time as provided in sub -section ( 2). \n(3) No order of cancellation of certificate of registration, granted to a credit information company, \nshall be made  by the Reserve Bank unless such company has been given a reasonable opportunity of \nbeing heard.  \n7. Appeal against order of Reserve Bank .—(1) A credit information company aggrieved by the \norder of  rejection of an application for grant of certificate of registratio n under section 5 or cancellation of \ncertificate of  registration under section 6, may prefer an appeal to the Central Government or any other \nauthority or tribunal which  may be designated by rules made by the Central Government, within a period \nof thirty d ays from the date on which  such order of rejection or cancellation, as the case may be, is \ncommunicated to the credit information company.  \n(2) The decision of the Central Government or the authority or tribunal referred to in sub -section ( 1) \nwhere an  appea l has been preferred to it under sub -section ( 1), or of these Reserve Bank where no such \nappeal has been  preferred, shall be final : \nProvided that before making any order of rejection of an appeal, the applicant company or the credit \ninformation  company, as  the case may be, shall be given a reasonable opportunity of being heard.  \n8. Requirement as to minimum capital .—(1) The authorised capital of every credit information \ncompany shall  be a minimum of thirty crores : \nProvided that the Reserve Bank may, by notif ication, increase the minimum amount of authorised \ncapital to any  amount not exceeding fifty crores.  \n(2) The issued capital of every credit information company shall  not be less than twenty crores : \nProvided that the Reserve Bank may, by notification, increase the issued capital to any amount not \nexceeding the  minimum amount of authorised capital as referred to in sub -section ( 1). \n(3) The minimum paid up capital of every credit information company at any time shall not be less \nthan seventy -five per cent . of the issued capital.  \nCHAPTER III  \nMANAGEMENT OF CREDIT INFORMATION COMPANIES  \n9. Management of credit information company .—(1) Notwithstanding anything contained in any \nlaw for the  time being in force, or in any contract to the contrary, every credit inf ormation company in \nexistence on the  commencement of this Act, or which comes into existence thereafter, shall have one of \nits directors, who may be  appointed on whole -time or on a part -time basis as chairperson of its board, and \nwhere he is appointed on w hole-time basis as chairperson of its board, he shall be entrusted with the \nmanagement of the whole of the affairs of the credit  information company:  \nProvided that the chairperson of the board of the credit information company shall exercise his \npowers sub ject to  the superintendence, control and directions of the board.  \n(2) Where a chairperson is appointed on a part -time basis, the management of whole of the affairs of \nthe credit  information company shall be entrusted to a managing director or, a whole -time director by \nwhatever name called,  who shall exercise his powers subject to the superintendence, control and \ndirections of the board.  \n(3) In addition to the chairperson or managing director or whole -time director, by whatever name \ncalled, the  board of directors shall consist of not less than fifty per cent . directors who shall be persons ']"
49,"Can the Reserve Bank issue directions to banking companies under Section 35A of the Banking Regulation Act, 1949?","Yes, the Reserve Bank can issue directions to banking companies generally or to any banking company in particular, if it is satisfied that it is necessary to do so in the public interest, in the interest of banking policy, or to secure the proper management of any banking company.",,"['7. Inserted by  National Bank For Financing Infrastructure And Development Act, 2021  w.e.f. 19.04.2021 \nvide Notification No. SO1657(E) dated 16.04.2021.  \n \nSection 35 - Inspection  \n \n(1) Notwithstanding anything to the contrary contained in  1[section 235 of the \nCompanies Act, 1956 (1 of 1956)], the Reserve Bank at any time may, and on \nbeing directed so to do by the Central Government shall, cause an inspection to be \nmade by one or more of its officers of any banking company and its books and \naccounts; and the Reserve Bank shall supply to the banking company a copy of its \nreport on such inspection.  \n2[(1A)      (a) Notwithstanding anything to the contrary contained in any law for the \ntime being in force and without prejudice to the provisions of sub -section (1), the \nReserve Bank, at any time,  may also cause a scrutiny to be made by any one or \nmore of its officers, of the affairs of any banking company and its books and \naccounts; and  \n(b) a copy of the report of the scrutiny shall be furnished to the banking \ncompany if the banking company makes a request for the same or if any \nadverse action is contemplated against the banking company on the basis \nof the scrutiny.]  \n(2) It shall be the duty of every director or other officer 3[or employee] of the \nbanking company to produce to any officer making an  inspection under sub -section \n(1) 7[or a scrutiny under sub -section (1A)] all such books, accounts and other \ndocuments in his custody or power and to furnish him with any statements and \ninformation relating to the affairs of the banking company as the said  officer may \nrequire of him within such time as the said officer may specify.  \n(3) Any person making an inspection under sub -section (1)  4[or a scrutiny under \nsub-section (1A)] may examine on oath any director or other officer 3[or employee] \nof the banking company in relation to its business, and may administer an oath \naccordingly.  \n(4) the Reserve Bank shall, if it has been directed by the Central Government to \ncause an inspection to be made, and may, in any other case, report to the Central \nGovernment on an y inspection  4[or scrutiny] made under this section, and the \nCentral Government, if it is of opinion after considering the report that the affairs \nof the banking company are being conducted to the detriment of the interests of \nits depositors, may, after gi ving such opportunity to the banking company to make \na representation in connection with the report as, in the opinion of the Central \nGovernment, seems reasonable, by order in writing - (a) prohibit the banking company from receiving fresh deposits;  \n(b) dir ect the Reserve Bank to apply under section 38 for the winding up of the \nbanking company:  \nProvided that the Central Government may defer, for such period as it may \nthink fit, the passing of an order under this sub -section, or cancel or modify \nany such orde r, upon such terms and conditions as it may think fit to \nimpose.  \n(5) the Central Government may, after giving reasonable notice to the banking company, publish the report submitted by the Reserve Bank or such portion there \nof as may appear necessary.\n \n5[Explanation. --For the purpose of this section, the expression ""banking \ncompany"" shall include - \n(i) in the case of a banking company incorporated outside India, all its branches in India; and\n \n(ii) in the case of a banking company incorporated in India-  \n(a) all  its subsidiaries formed for the purpose of carrying on the business \nof banking exclusively outside India; and  \n(b) all its branches whether situated in India or outside India.]  \n6[(6) the powers exercisable by the Reserve Bank under this section in relation  to \nregional rural banks may (without prejudice to the exercise of such powers by the \nReserve Bank in relation to any regional rural bank whenever it considers necessary \nso to do) be exercised by the National Sank in relation to the regional rural banks, and accordingly, sub- sections (1) to (5) shall apply in relation to regional rural \nbanks as if every reference the rein to the Reserve Bank included also a reference \nto the National Bank.]\n \n___________________  \n1. Substituted by  Act 95 of 1956 , Section 14  and Schedule, for "" Section 138 of the  Indian companies Act, \n1913 (7 of 1913)"" w.e.f. 14- 1-1957. \n2. Inserted by  Act 1 of 1984 , Section 29 w.e.f. 15- 2-1984. \n3. Inserted by  Act 55 of 1963,  Section 17 w.e.f. 1- 2-1964. \n4. Inserted by  Act 1 of 1984 , Section 29 w.e. f. 15- 2-1984. \n5. Added  Act 33 of 1959 Section 20 w.e.f. 1- 10-1959. 6. Inserted by  Act 61 of 1981,  Section 61 and Second Schedule, Pt. II. W.e.f. 1- 5-1982. \n7. Inserted by  Act 53 of 1987,  section 56 and schedule II (w.e.f. 9.7.1988).  \n \n \nSection 35A - Power of the Reserve Bank to give directions  \n \n1[35A. Power of the Reserve Bank to give directions  \n(1) Where the Reserve Bank is satisfied that - \n(a) in the  2[public interest]; or  \n3[(aa) in the interest of banking policy; or]  \n(b) to prevent the affairs of any banking company being conducted in a manner \ndetrimental to the interests of the depositors or in a manner prejudicial to the \ninterests of the banking company; or  \n(c) to secure the proper management of any banking company generally, it is \nnecessary to issue  directions to banking companies generally or to any banking \ncompany in particular, it may, from time to time, issue such directions as it deems fit, and the banking companies or the banking company, as the case \nmay be, shall be bound to comply with such d irections.\n \n(2) The Reserve Bank may, on representation made to it or on its own motion, \nmodify or cancel any direction issued under sub- section (1), and in so modifying or \ncanceling any direction may impose such conditions as it thinks fit, subject to which \nthe modification or cancellation shall have effect.  \n___________________  \n1. Inserted by  Act 95 of 1956,  section 7  (w.e.f. 14.1.1957).  \n2. Substituted by  Act 7 of 1961, Section 2, for ""national interest"".  \n3. Inserted by  Act 58 of 1968, Section 10 w.e.f. 1-2-1969. \n \nSection 35AA -  Power of Central Government to authorise Reserve Bank for \nissuing directions to banking companies to initiate insolvency resolution process  \n \n1[35AA. Power of Central Government to authorise Reserve Bank for issuing \ndirections to  banking companies to initiate insolvency resolution process  \nThe Central Government may, by order, authorise the Reserve Bank to issue \ndirections to any banking company or banking companies to initiate insolvency resolution process in respect of a default,  under the provisions of the Insolvency \nand Bankruptcy Code, 2016 (31 of 2016).  \nExplanation. -- For the purposes of this section, ""default"" has the same meaning \nassigned to it in clause (12) of  Section 3  of the Insolvency and Bankruptcy \nCode, 2016 (31 of 2016).]  \n \n1. Inserted by the Banking Regulation (Amendment) Act, 2017 , Section 2 (W.r.e.f. 04.05.2017).  \n \nSection 35AB - Power of Reserve Bank to issue directions in respect of stressed \nassets  \n \n1[35AB. Power of Reserve Bank to issue directions in respect of  stressed assets  \n(1) Without prejudice to the provisions of section 35A, the Reserve Bank may, from \ntime to time, issue directions to any banking company or banking companies for \nresolution of stressed assets.  \n(2) The Reserve Bank may specify one or more authorities or committees with such \nmembers as the Reserve Bank may appoint or approve for appointment to advise any banking company or banking companies on resolution of stressed assets.]\n \n \n1. Inserted by  Act 30 of 2017,  Section 2  (w.r.e.f. 4.5.2017).  \n \nSection 35B - Amendments of provisions relating to appointments of managing \ndirectors, etc., to be subject to previous approval of the Reserve Bank  \n \n(1) In the case of a banking company - \n(a) no amendment of any provision relating to 1[the maximum permissib le \nnumber of directors or ] the  2[appointment or re -appointment or termination of \nappointment or remuneration of a chairman, a]  3[managing director or any \nother director, whole -time or otherwise] or of a manager or a chief executive \nofficer by whatever nam e called, whether that provision be contained in the \ncompany\'s memorandum or articles of association, or in an agreement entered \ninto by it, or in any resolution passed by the company in general meeting or by \nits Board of directors shall have effect unless  approved by the Reserve Bank;  \n4[(b) no appointment or re -appointment or termination of appointment of a \nchairman, a managing or whole -time director, manager or chief executive \nofficer by whatever name called, shall have effect unless such appointment, re -']"
50,What is the requirement for a co-operative bank to submit a copy of its return to the National Bank?,"Every co-operative bank, other than a primary co-operative bank, shall submit a copy of its return to the National Bank, in addition to submitting a copy to the Reserve Bank.",,"['(a) no licence, granted to a multi -State co -operative \nsociety by the Reserve Bank und er section 22, which \nwas subsisting on the date of commencement of the \nBanking Regulation (Amendment) and Miscellaneous Provisions Act, 2004, shall be invalid or be deemed ever to have been invalid merely by the reason of such \njudgment, decree or order;\n \n(b) every licence, granted to a multi -State co -\noperative society by the Reserve Bank under section \n22, which was subsisting on the date of \ncommencement of the Banking Regulation (Amendment) and Miscellaneous Provisions Act, 2004, shall be valid and be deemed  always to have been \nvalidly granted in accordance with law;\n \n(c) a multi- State co -operative society whose \napplication for grant of licence for carrying on banking \nbusiness was pending with the Reserve Bank on the \ndate of commencement of the Banking Regulat ion \n(Amendment) and Miscellaneous Provisions Act, 2004 shall be eligible to carry on banking business until it is \ngranted a licence in pursuance of section 22 or is, by \na notice in writing notified by the Reserve Bank that \nthe licence cannot be granted to it;]\n \n36[(p) in section 23, -- \n(i) for sub -section (1), the following sub -section shall be substituted, \nnamely: --] \n""(1) Without obtaining the prior permission of the Reserve \nBank, no co -operative bank shall open a new place of \nbusiness or change otherwise th an within the same city, town \nor village, the location of an existing place of business:  \nProvided that nothing in this sub -section shall apply \nto-- \n(a) the opening for a period not exceeding one month of temporary place of business within a city, town or \nvillage or the environs thereof within which the co -\noperative bank already has a place of business, for the \npurpose of affording banking facilities to the public on the occasion of an exhibition, a conference or a mela \nor any like occasion;  \n(b) the  37[opening or changing the location of \nbranches] by a Central co- operative bank within the \narea of its operation"";  \n38[(ii) after sub -section (4), the following sub -section shall be \ninserted, namely: -- \n""(4A) Any co -operative bank other than a primary cooperative \nbank requiring the permission of the Reserve Bank under this \nsection shall forward its application to the Reserve Bank \nthrough the National Bank which shall give its comments on \nthe merits of the application and sent it to the Reserve Bank:  \nProvided that the  co-operative bank shall also send an \nadvance copy of the application directly to the Reserve Bank.""];""\n \n39[(q) in section 24, -- \n(i) 74[***]  \n88[***]* \n(iii) in sub -section (3) for the proviso, the following proviso shall be \nsubstituted, namely: -- \n""Provided that every co -operative bank, other than a primary \nco-operative bank, shall also furnish within the said period, a \ncopy of the said return to the National Bank."";  \n89[***]* \n42[(qq) after section 24, the following section shall be inserted, namely: -- \n""24A. P ower to exempt. --Without prejudice to the provisions of \nsection 53, the Reserve Bank may, by notification in the Official \nGazette, declare that, for such period and subject to such conditions \nas may be specified in such notification the whole or any part of the provisions of section 18 or section 24, as may be specified therein, shall not apply to any co- operative bank or class of co- operative \nbanks, with reference to all or any of the offices of such co -operative \nbank or banks, or with reference to the whole or any part of the \nassets and liabilities of such co -operative bank or banks.""];\n 90[***]* \n43[(ri) in the second proviso to section 26, for the expression ""regional rural \nBank"" the expression ""co -operative bank, other than a primary cooperative \nbank"" sha ll be substituted;  \n91[***]* \n(rii) in section 27, for sub -section (3) the following sub -section shall be \nsubstituted, namely: -- \n""(3) Every co -operative bank, other than a primary co- operative \nbank, shall submit a copy of the return which it submits to the \nReserve Banks, under sub -section (1) also to the National Bank and \nthe powers exercisable by the Reserve Bank under sub -section (2) \nmay also be exercised by the National Bank in relation to cooperative \nbanks, other than primary co- operative banks"".];  \n(s) fo r 76[sections 29], the following section shall be substituted namely: -- \n""29. Accounts and Balance Sheet. -- \n(1) At the expiration of each year ending with the 30th day \nof June,  46[or at the expiration of a period of twelve months \nending with such date as th e Central Government may, by \nnotification in the Official Gazette, specify in this behalf] every \nco-operative bank, in respect of all business transacted by it, \nshall prepare with reference to that year  47[or the period] a \nbalance sheet and profit and loss  account as on the last \nworking day of the year 46[or the period] in the Forms set out \nin the Third Schedule as near thereto as circumstances admit:  \n(2) The balance -sheet and profit and loss account shall be \nsigned by the manager or the principal officer of the bank and where there are more than three directors of the bank, by at \nleast three of those directors, or where there are not more \nthan three directors, by all the directors.\n \n(3) The Central Government, after giving not less than three \nmonths\' notice of its intention so to do by a notification in the \nOfficial Gazette, may from time to time by a like notification \namend the Forms set out in the Third Schedule."";  \n48[Provided that with a view to facilitating the \ntransition from one period of accounting to another \nperiod of accounting under this subsection, the Central Government may, by order published in the Official \nGazette, make such provisions as it considers \nnecessary or expedient for the preparation of, or for \nother matters relating to, the balance -sheet or profit \nand loss account in respect of the concerned year or \nperiod, as the case may be.]  \n92[***]* \n50[(t) in section 31,--  \n93[***]* \n(ii) for the second proviso, the following proviso shall be substituted, \nnamely: -- \n""Provided further that a co -operative bank, other than a \nprimary co- operative bank, shall furnish such returns also to \nthe National Bank."";]  \n94[***]* \n(w) in section 35, -- \n(i) in sub -section (1), -- \n(a) for the words and figures "" Section 235 of the  Companies \nAct, 1956  (1 of 1956)"", the words ""any law relating to \ncooperative societies for the time being in force"" shall be \nsubstituted;  \n51[(b) the following proviso shall be inserted at the end, \nnamely: -- \n""Provided that the Reserve Bank may, if it considers it \nnecessary or expedient so t o do, cause an inspection \nto be made of a primary co- operative bank under this \nsub-section by one or more officers of a State co-\noperative bank in the State in which such primary co -\noperative bank is registered.""];  \n(ii) in sub -section (4), clause (b) shall  be omitted.  \n52[(iii) after sub -section (4), the following sub -section shall be \ninserted, namely: -- ""(4A) Without prejudice to the provisions of sub -section (4), \nthe Reserve Bank may, if it considers it necessary or \nexpedient so to do supply a copy of the report on any \ninspection or scrutiny to the State co -operative bank and the \nRegistrar of co- operative societies of the State in which the \nbank which has been inspected or whose affairs have been \nscrutinised is registered.""];  \n53[(iv)] in sub -section (6), fo r the expressions ""regional rural banks"" \nand ""regional rural bank"", wherever they occur, the expressions \n""cooperative banks other than primary co- operative banks"" and \n""cooperative bank other than a primary co- operative bank"" shall, \nrespectively, be substit uted.  \n54[(v)] the Explanation shall be omitted;  \n95[***]* \n57[(zaa) after section 36AA of the principal Act, the following sections shall \nbe inserted, namely: -- \n""36AAA. Super session of Board of directors of a  96[co-\noperative bank]*.-- \n(1) Where the Reserve Bank is satisfied in the public interest \nor for preventing the affairs of a multi -State co -operative \nbank being conducted in a manner detrimental to the interest \nof the depositors or of the multi -State co -operative bank or \nfor securing the proper managemen t of the multi -State co -\noperative bank, it is necessary so to do, the Reserve Bank \nmay, for reasons to be recorded in writing, by order, \nsupersede the Board of directors of such multi -State \ncooperative bank for a period not exceeding five years as may be specified in the order, which may be extended from time \nto time, so, however, that total period shall not exceed five \nyears.\n \n77[Provided that in the case of a co- operative bank registered \nwith the Registrar of Co -operative Societies of a State, the \nReserve Bank shall issue such order in consultation with the \nconcerned State Government seeking its comments, if any, within such period as the Reserve Bank may specify.;]\n* \n(2) The Reserve Bank may, on super session of the Board of \ndirectors of the multi -State co -operative bank under sub -']"
51,"What is the power of the Central Government to add to, amend or vary any scheme made under Section 36A?","The Central Government may, after consultation with the Reserve Bank, by notification in the Official Gazette, add to, amend or vary any scheme made under Section 36A.",,"['(d) the continuance of the right of any person who, on the appointed day, is \nentitled to or is in receipt of, a pension or other superannuation or compassionate allowance or benefit, from the acquired bank or any provident, \npension or other fund or any authority administering such fund, to be paid by, \nand to receive from, the Central Government or the transferee bank, as the \ncase may be, or any providen t, pension or other fund or any authority \nadministering such fund, the same pension, allowance or benefit so long as he observes the conditions on which the pension, allowance or benefit was granted, and if any question arises whether he has so observed su ch conditions, the \nquestion shall be determined by the Central Government and the decision of \nthe Central Government thereon shall be final;\n \n(e) the manner of payment of the compensation payable in accordance with the \nprovisions of this Part to the shareholders of the acquired bank, or where the acquired bank is a banking company incorporated outside India, to the acquired bank in full satisfaction of their, or as the case maybe, its claims;\n \n(f) the provision, if any, for completing the effectual transfer t o the Central \nGovernment or the transferee bank of any asset or any liability which forms part of the undertaking of the acquired bank in any country outside India;\n \n(g) such incidental, consequential and supplemental matters as may be necessary to secure t hat the transfer of the business, property, assets and \nliabilities of the acquired bank to the Central Government or transferee bank, as the case may be, is effectual and complete.\n \n(3) The Central Government may, after consultation with the Reserve Bank, by \nnotification in the Official Gazette, add to, amend ovary any scheme made under this section.\n \n(4) Every scheme made under this section shall be published in the Official Gazette.  \n(5) Copies of every scheme made under this section shall be laid before ea ch House \nof Parliament as soon as may be after it is made.  \n(6) The provisions of this Part and of any scheme made there under shall have effect notwithstanding anything to the contrary contained in any other provisions of this Act or in any other law or an y agreement, award or other instrument for the \ntime being in force.\n \n(7) Every scheme made under this section shall be binding on the Central Government or, as the case may be, on the transferee bank and also on all members, creditors, depositors and employ ees of the acquired bank and of the \ntransferee bank and on any other person having any right, liability, power or function in relation to, or in connection with, the acquired bank or the transferee \nbank, as the case may be.  \n \nSection 36AG - Compensation to  be given to shareholders of the acquired bank  \n \n  \n(1) Every person who, immediately before the appointed day, is registered as a holder of shares in the acquired bank or, when the acquired bank is a banking company incorporated outside India, the acquired  bank, shall be given by the \nCentral Government, or the transferee bank, as the case may be, such compensation in respect of the transfer of the undertaking of the acquired bank as \nit determined in accordance with the principles contained in the Fifth Sche dule.\n \n(2) Nothing contained in sub -section (1) shall affect the rights inter se between the \nholder of any share in the acquired bank and any other person who may have any \ninterest in such shares and such other person shall be entitled to enforce his \nintere st against the compensation awarded to the holder of such share, but not \nagainst the Central Government, or the transferee bank.  \n(3) The amount of compensation to be given in accordance with the principles \ncontained in the Fifth Schedule shall be determine d in the first instance by the \nCentral Government, or the transferee bank, as the case may be, in consultation with the Reserve Bank, and shall be offered by it to all those to whom compensation \nis payable under sub- section (1) in full satisfaction thereof .\n \n(4) If the amount of compensation offered in terms of sub -section (3) is not \nacceptable to any person to whom the compensation is payable, such person may, \nbefore such date as may be notified by the Central Government in the Official \nGazette, request the  Central Government in writing, to have the matter referred to \nthe Tribunal constituted under section 36AH.  \n(5) If, before the date notified under sub -section (4), the Central Government \nreceives requests, in terms of that sub -section, from not less than o ne-fourth in \nnumber of the shareholders holding not less than one -fourth in value of the paid -\nup share capital of the acquired bank, or, where the acquired bank is a banking company incorporated outside India, from the acquired bank, the Central \nGovernment  shall have the matter referred to the Tribunal for decision.\n \n(6) If, before the date notified under sub -section (4), the Central Government does \nnot receive requests as provided in that sub -section, the amount of compensation \noffered \' under sub -section ( 3), and where a reference has been made to the Tribunal, the amount determined by it, shall be the compensation payable under \nsub-section (!) and shall be final and binding on all parties concerned.  \n \nSection 36AH - Constitution of the Tribunal  \n \n  \n(1) The  Central Government may, for the purpose of this Part, constitute a Tribunal \nwhich shall consist of a Chairman and two other members.  \n(2) The Chairman shall be a person who is, or has been, a Judge of a High Court or of the Supreme Court, and, of the two o ther members, one shall be a person, \nwho, in the opinion of the Central Government, has had experience of commercial banking and the other shall be a person who is a chartered accountant within the \nmeaning of the Chartered Accountants\' Act, 1949(38 of 1949).\n \n(3) If, for any reason, a vacancy occurs in the office of the Chairman or any other \nmember of the Tribunal, the Central Government may fill the vacancy by appointing \nanother person thereto in accordance with the provisions of sub -section (2), and \nany pr oceeding may be continued before the Tribunal, so constituted, from the \nstage at which the vacancy occurred.  \n(4) The Tribunal may, for the purpose of determining any compensation payable \nunder this part, choose one or more persons having special knowledge or \nexperience of any relevant matter to assist it in the determination of such \ncompensation.  \n \nSection 36AI - Tribunal to have powers of a civil court  \n \n(1) The Tribunal shall have the powers of a civil court, while trying a suit, under \nthe Code of Civil Procedure, 1908 (5 of 1908) in respect of the following matters, \nnamely : — \n(a) summoning and enforcing the attendance of any person and examining him on oath;\n \n(b) requiring the discovery and production of documents;  \n(c) receiving evidence on affidavits;  \n(d) issuing commissions for the examination of witnesses or documents.  \n(2) Notwithstanding anything contained in sub -section (1), or in any other law for \nthe time being in force, the Tribunal shall not compel the Central Government or the Reserve Bank, —\n \n(a) to produce any books of account or other documents which the Central \nGovernment, or the Reserve Bank, claims to be of a confidential nature;  (b) to make any such books or documents part of the record of the proceedings \nbefore the Tribunal; or  \n(c) to give inspection of any such books or documents to any party before it or to any other person.\n \n \nSection 36AJ - Procedure of the Tribunal  \n \n(1) The Tribunal shall have power to regulate its own procedure.  \n(2) The Tribunal may hold the whole or any part of its inquiry in camera  \n(3) Any clerical or arithmetical error in any order of the Tribunal or any error arising \ntherein from any accidental slip or omission may, at any time, be corrected by the \nTribunal either of its own motion or on the application of any of the parties.]  \n \nSection 36B - High Court defined  \n \n1[2[36B. High Court defined  \nIn this Part and in Part IIIA ""High Court"", in relation to a banking company, means \nthe High Court exercising jurisdiction in the place where the registered office of the \nbanking company is situated or, in the case of a banking company incorporated \noutside India, where its principal place of business in India is situated. ]]  \n______________________  \n1. Inserted by  Act 52 of 1953, Section 3.  \n2. Section 36A renumbered as sectio n 36B by  Act 33 of 1959, Section 24 w.e.f. 1- 10-1959. \n \nSection 37 - Suspension of business  \n \n(1) The  1[High Court] may on the application of a banking company which is \ntemporarily unable to meet its obligations make an order (a copy of which it shall \ncause to be forwarded to the Reserve Bank) staying the commencement or \ncontinuance of all actions and proceedings against the company for a fixed period of time on such terms and conditions as it shall think fit and proper, and may from \ntime to time extend  the period so however that the total period of moratorium shall \nnot exceed six months.\n \n(2) No such application shall be maintainable unless it is accompanied by a report \nof the Reserve Bank indicating that in the opinion of the Reserve Bank the banking \ncompany will be able to pay its debts if the application is granted:  ']"
52,"What is the provision regarding the computation of demand and time liabilities of co-operative banks, as per the amended section?","The computation of demand and time liabilities of co-operative banks shall include all deposits, whether payable on demand or otherwise, and all borrowings, whether secured or unsecured.",,"['""other than a primary credit society""  \n72. Substituted by the Banking Laws (Amendment) Act, 2012 (Act No. 2013) w.e.f. 18.01.2013 for the \nfollowing: - \n""thereafter, or""  \n73. Omitted by the Banking Laws (Amendment) Act, 2012 (Act No. 2013) w.e.f. 18.01.2013 for the  following: - \n""(iii) a primary credit society which becomes a primary Co -operative bank after such commencement,"".  \n74. Omitted by the Banking Laws (Amendment) Act, 2012 (Act No. 2013) w.e.f. 18.01.2013 for the following: - \n""(i) in sub -section (1) the words "" After the expiry of two years from the commencement of this Act"" shall \nbe omitted;"".  \n75. Substituted by the Banking Laws (Amendment) Act, 2012 (Act No. 2013) w.e.f. 18.01.2013 for the following: -\n \n""(ii) for sub -sections (2) and (2A), the following sub -sections shall be substituted, namely: -- \n""(2) In computing the amount for the purposes of sub -section (1), -- \n(a) any balances maintained in India by a co -operative bank in current account with the Reserve \nBank or by way of net balance in current accounts, and in the case of a scheduled State co -\noperative bank, also the balance required under  Section 42 of the  Reserve Bank of India Act, \n1934 (2 of 1934), to be so maintained,  \n(b) any balances maintained by a Central co -operative bank with the State cooperative bank of \nthe State concerned, and  \n(c) any balances maintained by a primary co -operative bank with Central cooperative bank of \nthe district concerned or with the State co -operative bank of the State concerned,  \nshall be deemed to be cash maintained in India.  \n(2A)    (a) Notwithstanding anything contained in sub -section (1) or in sub -section (2), after the \nexpiry of two years from the commencement of the  Banking Laws (Application to Co -operative \nSocieties) Act, 1965 (23 of 1965), or of such further period not exc eeding one year as the Reserve \nBank, having regard to the interests of the co -operative bank concerned, may think fit in any \nparticular case to allow -- \n(i) a scheduled State co -operative bank, in addition to the average daily balance which it is \nor may be,  required to maintain under  section 42  of the  Reserve Bank of India Act, 1934 (2 \nof 1934), and  \n(ii) every other co -operative bank, in addition to the cash reserve which is required to \nmaintain under section 18,  shall maintain in India, in cash, or in gold valued at a price not exceeding the current market \nprice or in unencumbered approved securities valued at a price determined in accordance with such one or more of, or combination of, the following methods of valuation namely, valuation with reference to c ost price, market price, book value or face value, as may be specified by the \nReserve Bank from time to time, an amount which shall not, at the close of business on any day, be less than twenty -five per cent. or such other percentage not exceeding four per  cent. as the \nReserve Bank may, from time to time, by notification in the Official Gazette, specify, of the total \nof its demand and time liabilities in India, as on the last Friday of the second preceding fortnight.\n \n(b) In computing the amount for the purp ose of clause (a), the following shall be deemed to be \ncash maintained in India, namely: -- \n(i) any balance maintained by scheduled State co -operative bank with the Reserve Bank in \nexcess of the balance required to be maintained by it under  Section 42 of th e Reserve Bank \nof India Act, 1934 (2 of 1934);  \n(ii) any cash or balances maintained in India by a co -operative bank, other than a scheduled \nState co -operative bank, with itself or with the State co -operative bank of the State \nconcerned, or in current account with the Reserve Bank or by way of net balance in current \naccounts and, in the case of a primary cooperative bank, also any balances maintained with the Central co -operative bank of the district concerned, in excess of the aggregate of the \ncash or balances required to be maintained under section 18;\n \n(iii) any net balance in current accounts.  \nExplanation. --For the purposes of this sub -section--  \n(a) approved securities or a portion thereof, representing investment of monies of Agricultural Credit Stabilisa tion Fund of a co -operative bank shall not be \ndeemed to be un encumber approved securities;\n \n(b) in case a co -operative bank has taken an advance against any balance \nmaintained with the State co -operative bank of the State concerned or with the \nCentral co -operative bank of the district concerned, such balance to the extent to \nwhich it has been drawn against or availed of shall not be deemed to be cash \nmaintained in India;  \n(c) for the purpose of clause (a), the market price of an approved security shall \nbe the price as on the date of the issue of the notification or as on any earlier or \nlater date as may be notified from time to time by the Reserve Bank in respect of \nany class or classes of securities;"".  \n76. Substituted by the Banking Laws (Amendment) Act, 2012  (Act No. 2013) w.e.f. 18.01.2013 for the \nfollowing: - \n""sections 29 and 30""  *. The amendment with respect to primary co -operative banks shall be deemed to have come into force on \nthe 29th day of June, 2020 while for State Co -operative Banks and Central Co-operative banks, amendments \nwill come into force on 1st April, 2021.  \n77. Inserted by the Banking Regulation (Amendment) Act, 2020 (Act No. 39 of 2020), w.e.f. 01.04.2021.  \n78. Omitted by the Banking Regulation (Amendment) Act, 2020  (Act No. 39 of 2020), w.e.f. 01.04.2021, for \nthe following: - \n""(d) for section 5A, the following section shall be substituted, namely: -- \n""5A. Act to override bye-laws, etc.--  \n(1) The provisions of  7[this Act] shall have effect, notwithstanding anything to the contrary \ncontained in the bye -laws of a co -operative society, or in any agreement executed by it, or in \nany resolution passed by it in general meeting, or by its Board of Directors or other body \nentrusted with the management of its affairs, whether the same be registered, ex ecuted or \npassed; as the case may be before or after the commencement of the  Banking Laws (Application \nto Co -operative Societies Act, 1965 (23 of 1965).  \n(2) Any provision contained in the bye -laws, agreement or resolution aforesaid shall, to the \nextent to which it is repugnant to the provisions of  8[this Act,] become or be void, as the case \nmay be."";""  \n79. Substituted by the Banking Regulation (Amendment) Act, 2020 (Act No. 39 of 2020), w.e.f. 01.04.2021 for \nthe following: - \n""The provisions of this Act, as in  force for the time being,""  \n80. Omitted by the Banking Regulation (Amendment) Act, 2020  (Act No. 39 of 2020), w.e.f. 01.04.2021, for \nthe following: - \n""(i) in clause (b), the words, ""but excluding the business of a managing agent or secretary and treasurer of company"" shall be omitted;""\n \n81. Omitted by the Banking Regulation (Amendment) Act, 2020  (Act No. 39 of 2020), w.e.f. 01.04.2021, for \nthe following: - \n""(iii) in clause (m), after the word ""company"", the words ""or co -operative society"" shall be inserted;""  \n82.  Omitted by the  Banking Regulation (Amendment) Act, 2020 (Act No. 39 of 2020), w.e.f. 01.04.2021, for \nthe following: - \n""or co -operative land mortgage banks"".  \n83. Omitted by the Banking Regulation (Amendment) Act, 2020  (Act No. 39 of 2020), w.e.f. 01.04. 2021, for \nthe following: - ""or a co -operative land mortgage bank"".  \n84. Omitted by the Banking Regulation (Amendment) Act, 2020  (Act No. 39 of 2020), w.e.f. 01.04.2021, for \nthe following: - \n""(fi) in section 8, for the proviso, the following proviso shall be substituted, namely: -- \n""Provided that this section shall not apply -- \n(a) to any such business as aforesaid which was in the course of being transacted on the \ncommencement of clause (iii) of section 42 of the  Banking Laws (Amendment) Act, 1983 , so, \nhowever, that the said business shall be completed before the expiry of one year from such \ncommencement; or  \n(b) to any business as is specified in pursuance of clause (o) of sub -section (1) of section 6;"";  \n(fii) in section 9, for the second proviso, the following provisos shall be substituted, namely: -- \n""Provided further that in the case of a primary credit society which becomes a primary co -operative \nbank after the commencement of clause (iii) of section 42 of the  Banking Laws (Amendment) Act, \n1983, the period of seven years shall commence from the day it so becomes a primary co -operative \nbank: \nProvided also that the Reserve Bank may, in any particular case, extend the aforesaid period of seven years by such period as it may consider necessary where it is satisfied  that such extension would be \nin the interests of the depositors of the co -operative bank.""];\n \n(g) 11[sections 10, 10A, 12[10B, 10BB, 10C], and 10D] shall be omitted;""  \n85. Substituted by the Banking Regulation (Amendment) Act, 2020  (Act No. 39 of 2020), w.e .f. \n01.04.2021, for the following: - \n""(i) sections 12, 12A, 13 and 15 to 17 shall be omitted;""  \n86. Omitted by the Banking Regulation (Amendment) Act, 2020  (Act No. 39 of 2020), w.e.f. 01.04.2021, for \nthe following: - \n""25[(l) for section 20 of the principal A ct, the following section shall be substituted, namely: -- \n""20. Restrictions on loans and advances. -- \n(1) No co -operative bank shall -- \n(a) make any loans or advances on the security of its own shares; or  \n(b) grant unsecured loans or advances--  \n(i) to any of  its directors; or  ']"
53,"What is the amendment made to section 53 of the Banking Regulation Act, 1949?","The amendment made to section 53 of the Banking Regulation Act, 1949 is that the words and figures 'or any of their branches functioning or located in any Special Economic Zone established under the Special Economic Zones Act, 2005' shall be omitted from sub-section (1), and the opening portion of sub-section (2) shall be substituted with a new provision.",,"['CHAPTER IV  \n REPEAL AND SAVING  \n4. Repeal and saving  \n(1) The Ba nking Regulation (Amendment) and Miscellaneous Provisions Ordinance, \n2004 (Ordinance 3 of 2004) is hereby repealed.  \n(2) Notwithstanding such repeal, anything done or any action taken under the \nBanking Regulation Act, 1949 (10 of 1949) and Deposit Insurance  and Credit \nGuarantee Corporation Act, 1961, (47 of 1961) as amended by the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of \nthose Acts, as amended by this Act.\n \nANNEXURE  \nEXTRACT FROM THE BANKING REGULATION ACT , 1949  \n(10 of 1949)  \n*            *            *            * \nPART V  \nAPPLICATION OF THE ACT TO CO -OPERATIVE BANKS  \n56. Act to Apply to Co -operative Societies Subject to Modifications:  \nThe provisions of this Act, as in force for the time being, shall apply to, or \nin relation to, co- operative societies as they apply to, or in relation to, \nbanking companies subject to the following modifications, namely: -- \n(c) in section 5, -- \n(i) after clause (cc), the following clauses shall be inserted, namely: --\n \n*            *            *            * \n(ccvii) ""central co -operative bank"", ""co- operative society"", ""primary \nrural credit society"" and ""state co- operative Bank"" shall have the \nmeanings respectively assigned to them in the National Bank for Agriculture and Rural Dev elopment Act, 1981(61 of 1981);\n \n*            *            *            * \n(zaa) in section 36AD, sub -section (3) shall be omitted.  *            *            *            * \n(zb) Part IIA, Part IIC, Part III, except sub -sections (1), (2) and (3) \nof section 45 , and Part IIIA except section 45W, shall be omitted;  \n*            *            *            * \nEXTRACT FROM THE DEPOSIT INSURANCE AND CREDIT GUARANTEE \nCORPORATION ACT, 1961  \n(47 of 1961)  \n*            *            *            * \n2. Definitions  \nIn this Act, unless the context otherwise requires, -- \n*            *            *            * \n(q) the expressions ""central co -operative bank"", ""co -operative \nsociety"" and ""State co -operative bank"" shall have the meanings \nrespectively assigned to them in the National Bank for Agriculture \nand Rural Development Act, 1981(61 of 1981);  \n(r) the expressions ""primary co -operative bank"" and ""primary credit \nsociety"" shall have the meanings respectively assigned to them in Part V of the Banking Regulation Act, 1949(10 of 1949);\n \n*            *            *            * \n \nAmending Act II - BANKING REGULATION (AMENDMENT) ACT, 2007  \n \nTHE BANKING REGULATION (AMENDMENT) ACT, 2007  \n[Act No. 31 of 2007]  \n[09th March, 2007]  \nPREAMBLE  \nfurther to amend the Banking Regulation Act, 1949.  \nBE it e nacted by Parliament in the Fifty- eighth Year of the Republic of India as \nfollows: -- \n1. Short title and commencement  \n(1) This Act may be called the Banking Regulation (Amendment) Act, 2007.  (2) It shall be deemed to have come into force on the 23rd day of January, 2007.  \n2. Amendment of section 24  \nIn section 24  of the Banking Regulation Act, 1949(10 of 1949) (hereinafter referred \nto as the principal Act), -- \n(a) sub -sections (1) and (2) shall be omitted;  \n(b) for sub -section (2A), the following sub -section sha ll be substituted, \nnamely: -- \n""(2A) A scheduled bank, in addition to the average daily balance \nwhich it is, or may be, required to maintain under section 42  of the \nReserve Bank of India Act, 1934(2 of 1934) and every other banking company, in addition to the cash reserve which it is required to maintain under section 18, shall maintain in India, assets, the value of which shall not be less than such percentage not exceeding forty \nper cent, of the total of its demand and time liabilities in India is on \nthe last Friday of the second preceding fortnight as the Reserve Bank \nmay, by notification in the Official Gazette, specify from time to time and such assets shall to maintained, in such form and manner, as \nmay be specified in such notification"";\n \n(c) sub -section (2B) shall be omitted.  \n3. Amendment of section 53  \nIn section 53  of the principal Act, -- \n(i) in sub -section (1), the words and figures ""or any of their branches \nfunctioning or located in any Special Economic Zone established under the \nSpecial Economic Zones Act, 2005(28 of 2005)"" shall be omitted;  \n(ii) in sub -section (2), in the opening portion, for the words, brackets and \nfigure ""A copy of every notification proposed to be issued under sub- section \n(1), shall be laid in draft before each House of Parliament"", the following words, brackets and figures shall be substituted, namely: --\n \n""A copy of every notification proposed to be issued under sub- section \n(1) relating to any banking company or institution or any class, of \nbanking companies or any branch of a banking company or an \ninstitution as the case may be, functioning or located in any Special Economic Zone established under the Special Economic Zones Act, 2005(28 of 2005) shall be laid in draft before each House of \nParliament.""\n 4. Repeal and saving  \n(1) The Banking Regulation (Amendment) Ordinance, 2007(Ord. 1 of 2007) is ere \nby repealed.  \n(2) Notwithstanding the repeal of the Banking Regulation (Amendment) Ordinance, \n2007(Ord. 1 of 2007), anything done or any action taken under the principal Act, \nas amende d by the said Ordinance, shall be deemed to have been done or taken \nunder the corresponding provisions of the principal Act, as amended by this Act.  \n \n \n \n \n   \n \n \n    \n \n \n \n ']"
54,Can a person holding shares or voting rights in excess of 5% of the total voting rights of a banking company be restricted from exercising their voting rights?,"Yes, if the Reserve Bank is satisfied that the person or persons acting in concert with him are not fit and proper to hold such shares or voting rights, it may pass an order directing that such person or persons shall not, in the aggregate, exercise voting rights on poll in excess of 5% of the total voting rights of all the shareholders of the banking company.",,"['(7) The Reserve Bank may specify the minimum percentage of shares to be \nacquired in a banking company if it considers that the purpose for which the shares \nare proposed to be acquired by the applicant warrants such minimum shareholding.  \n(8) The Reserve Bank may, if it is satisfied that any person or persons acting in concert wi th him holding shares or voting rights in excess of five per cent. of the \ntotal voting rights of all the shareholders of the banking company, are not fit and proper to hold such shares or voting rights, pass an order directing that such person or persons acting in concert with him shall not, in the aggregate, exercise voting rights on poll in excess of five per cent. of the total voting rights of all the \nshareholders of the banking company:\n \nProvided that the Reserve Bank shall not pass any such order withou t giving \nan opportunity of being heard to such person or persons acting in concert \nwith him.\'.  \n________________________  \n1. Inserted by the Banking Laws (Amendment) Act, 2012  (Act No. 4 of 2013) w.e.f. 18.01.2013.  \n \nSection 13 -  Restriction on commission, b rokerage, discount, etc. on sale of \nshares  \n \nNotwithstanding anything to the contrary contained in  1[sections 76  and 79 of the \nCompanies Act, 1956 (1 of1956)], no banking company shall pay out directly or \nindirectly by way of commission, brokerage, discount or remuneration in any form \nin respect of any shares issued by it, any amount exceeding in the aggregate two \nand one -half per cent of the  2[price at which the said shares are issued.].  \n3[Explanation, --For the removal of doubts, it is hereby declared that the \nexpression ""price at which the said shares are issued"" shall include amount or \nvalue of premium on such shares.]  \n___________________  \n1. Substituted by  Act 95 of 1956 , Section 14  and Schedule I, for "" Section 105 and 105A of the  Indian \nCompanies Act, 1913 (7 of 1913)"" w.e.f.14- 1-1957. \n2. Substituted by the Banking Laws (Amendment) Act, 2012  (Act No. 4 of 2013) w.e.f. 18.01.2013 for the \nfollowing: - \n""paid-up value of the said shares""  \n3. Inserted by the Banking Laws (Amendment) Act, 2012  (Act No. 4 of 2013) w.e.f. 18.01.2013.  \n Section 14 - Prohibition of charge on unpaid capital  \n \nNo banking company shall create any charge upon any unpaid capital of the \ncompany, and any such charge shall be invalid.  \n \nSection 14A - Prohibition of floating charge on assets  \n \n1[14A. Prohibition of floating charge on assets  \n(1) Notwithstanding anything contained in section 6, no banking company shall create a floating charge on the undertaking or any property of the company or any \npart thereof, unless the creation of such floating charge is certified in writing by \nthe Reserve Bank ascot being detrimental to the interests of the depositors of such \ncompany.\n \n(2) Any such charge created without obtaining the certificate of the Reserve Bank shall be invalid.\n \n(3) Any banking  company aggrieved by the refusal of a certificate under sub section \n(1) may, within ninety days from the date on which such refusal is communicated to it, appeal to the Central Government.\n \n \n1. Inserted by  Act 33 of 1959, Section 9w.e.f. 1 -10-1959. \n \nSection 15 - Restrictions as to payment of dividend  \n \n1[(1)] No banking company shall pay any dividend on its shares until all its \ncapitalised expenses (including preliminary expenses, organisation expenses, \nshare -selling commission, brokerage, amounts of loss es incurred and any other \nitem of expenditure not represented by tangible assets) have been completely \nwritten off.  \n2[(2)] Notwithstanding anything to the contrary contained in sub -section (1) or in \nthe Companies Act, 1956(1 of 1956), a banking company may  pay dividends on its \nshares without writing off - \n(i) the depreciation, if any, in the value of its investments in approved securities \nin any case where such depreciation has not actually been capitalised or \notherwise accounted for as a loss;  \n(ii) the depreciation, if any, in the value of its investments in shares, debentures \nor bonds (other than approved securities) in any case where adequate provision for such depreciation has been made to the satisfaction of the auditor of the \nbanking compan y; \n(iii) the bad debts, if any, in any case where adequate provision for such debts \nhas been made to the satisfaction of the auditor of the banking company. ]  \n___________________  \n1. Section 15 renumbered as sub -section (1) of that section by  Act 33 of 1959 , Section 10 w.e.f. 1- 10-1959. \n2. Inserted by  Act 33 of 1959, Section 10 w.e.f. 1- 10-1959. \n \nSection 16 - Prohibition of common directors  \n \n1[16. Prohibition of common directors  \n2[(1) No banking company incorpo rated in India shall have as a director in its Board \nof directors any person who is a director of any other banking company.  \n(2) If immediately before the commencement of the Banking Companies \n(Amendment) Act, 1956 (95 of 1956),any person holding office as a director of a \nbanking company is also a director of companies which among themselves are \nentitled to exercise voting rights in excess of twenty percent of the total voting rights of all the shareholders of the banking company, he shall, within such period \nfrom such commencement as the Reserve Ba nk may specify in this behalf -\n \n(a) either resign his office as a director of the banking company; or  \n(b) choose such number of companies as among themselves are not entitled to \nexercise voting rights in excess of twenty per cent, of the total voting rights  of \nall the shareholders of the banking company as companies in which he wishes \nto continue to hold the office of a director and resign his office as a director in \nthe other companies.]  \n3[(3) Nothing in sub -section (1) shall apply to, or in relation to, an y director \nappointed by the Reserve Bank.]]  \n___________________  \n1. Substituted by  Act 95 of 1956,  Section 5 , for section 16 w.e.f.14- 1-1957. \n2. Substituted by  Act 20 of 1994, Section 7 w.e.f. 22- 3-1994. \n3. Inserted by  Act 58 of 1968, Section 4 w.e.f. 1- 2-1969. \n  \nSection 17 - Reserve Fund  \n \n1[17. Reserve Fund  \n(1) Every banking company incorporated in India shall create a reserve fund \nand 2[* * *]shall, out of the balance of profit of each year as disclosed in the profit \nand loss account prepared under section 29 and before any dividend is declared, \ntransfer to the reserve fund a sum equivalent to not less than twenty percent of \nsuch profit.  \n3[(1A) Notwithstanding anything contained in sub -section(1), the Central \nGovernment may, on the recommendation of the Reserve Bank and having regard \nto the adequacy of the paid -up capital and reserves of a banking company in \nrelation to its deposit liabilities, declare by order in writing that the provisions of \nsub-section (1) shall not apply to the banking company fo r such period as may be \nspecified in the order:  \nProvided that no such order shall be made unless, at the time it is made, the \namount in the reserve fund under sub -section (1), together with the amount in \nthe share premium account is not less than the paid -up capital of the banking \ncompany.]  \n(2) Where a banking company appropriates any sum or sums from the reserve fund or the share premium account, it shall, within twenty -one days from the date of \nsuch appropriation, report the fact to the Reserve Bank, expl aining the \ncircumstances relating to such appropriation:\n \nProvided that the Reserve Bank may, in any particular case, extend the said period of twenty -one days by such period as it thinks fit or condone any delay \nin the making of such report.\n \n \n1. Substitut ed by  Act 33 of 1959, Section1, for section 17 and 18 w.e.f. 1- 10-1959. \n2. Certain words omitted by  Act 36 of 1962, Section 3.  \n3. Inserted by  Act 36 of 1962, Section 3.  \n \n  \n  \nSection 18 - Cash reserve  \n \n1[18. Cash reserve  \n(1) Every banking company, not being a scheduled bank,  5[shall maintain in India \non a daily basis] by way of cash reserve with itself or by way of balance in a current \naccount with the Reserve Bank, or byway of net balance in current accounts or in one or more of the aforesaid ways, a s um equivalent to  \n6[such per cent.] of the \ntotal of its demand and time liabilities in India as on the last Friday of the second preceding fortnight  \n7[as the Reserve Bank may specify, by notification in the Official \nGazette, from time to time, having regard  to the needs of securing the monetary \nstability in the country] and shall submit to the Reserve Bank before the twentieth \nday of every month are turn showing the amount so held on alternate Fridays \nduring a month with particulars of its demand and time li abilities in India on such \nFridays or if any such Friday is a public holiday under the Negotiable Instruments \nAct, 1881 (26 of 1881), at the close of business on the preceding working day.  \nExplanation. --In this section, and in section 24, - \n(a) ""liabilities  in India"" shall not include - \n(i) the paid -up capital or the reserves or any credit balance in the profit \nand loss account of the banking company;  \n(ii) any advance taken from the Reserve Bank  9[***] or from the Exim \nBank  2[or from the Reconstruction Bank]  3[or from the National Housing \nBank] or from the National Bank  4[, or from the Small Industries \nBank]  10[or from the National Bank for Financing Infrastructure and \nDevelopment or from the other development financial institution] by the banking company;\n \n(iii) in the case of a Regional Rural Bank, also any loan taken by such \nbank from its Sponsor Bank;  \n(b) ""fortnight"" shall mean the period from Saturday to the second following Friday, both days inclusive;\n \n(c) ""net balance in current accounts"" shall, in relat ion to a banking company, \nmean the excess, if any, of the aggregate of the credit balances in current \naccount maintained by that banking company with State Bank of India or a \nsubsidiary bank or a corresponding new bank over the aggregate of the \ncredit bala nces in current account held by the said banks with such banking \ncompany;  ']"
55,What is the role of the Reserve Bank in conducting a special audit of a banking company's accounts?,The Reserve Bank may at any time by order direct that a special audit of the banking company's accounts be conducted and may appoint a person duly qualified under any law for the time being in force to be an auditor of companies or direct the auditor of the banking company himself to conduct such special audit.,,"['opinion that it is necessary in the public interest or in the interest of the banking \ncompany or its depositors  so to do,  3[it may at any time by order direct that a \nspecial audit of the banking company\'s accounts, for any such transaction or class of transactions or for such period or periods as may be specified in the order, shall be conducted and may by the same  or a different order either appoint a person \nduly qualified under any law for the time being in force to be an auditor of companies or direct the auditor of the banking company himself to conduct such special audit] and the auditor shall comply with such directions and make a report \nof such audit to the Reserve Bank and forward a copy thereof to the company.\n \n(1c) The expenses of, or incidental to  3[the special audit] specified in the order \nmade by the Reserve Bank shall be borne by the banking company.]  \n(2) The auditor shall have the powers of, exercise the functions vested in, and discharge the duties and be subject to the liabilities and penalties imposed on, \nauditors of companies by  \n4[section 227  of the Companies Act, 1956 (1 of \n1956),  5[,and auditors,  if any, appointed by the law establishing, constituting or \nforming the banking company concerned.]  \n(3) In addition to the matters which under the aforesaid Act the auditor is required \nto state in his report, he shall, in the case of a banking company inco rporated  6[in \nIndia], state in his report, - \n(a) whether or not the information and explanation required by him have been \nfound to be satisfactory;  \n(b) whether or not the transactions of the company which have come to his notice have been within the powers of the company;\n \n(c) whether or not the returns received from branch offices of the company have been found adequate for the purposes of his audit;\n \n(d) whether the profit and loss account shows a true balance  7[of profit or loss] \nfor the period covered by s uch account;  \n(e) any other matter which he considers should be brought to the notice of the shareholders of the company.\n \n___________________  \n1. Substituted by  Act 58 of 1968, Section 8, for sub -section (1)w.e.f. 1- 2-1969. \n2. Inserted by  Act 58 of 1968, Sec tion 8 w.e.f. 1- 2-1969. \n3. Substituted by  Act 66 of 1988, Section 9, for certain words w.e.f.30- 12-1988. 4. Substituted by  Act 95 of 1956,  Section 14 and schedule., for "" Section 145 of the  Indian Companies Act, \n1913 (7 of 1913)"" w.e.f. 14- 1-1957. \n5. Insert ed by  Act 66 of 1988, Section 9, for certain words w.e.f.30- 12-1988. \n6. Substituted by  Act 20 of 1950, Section 3, for ""in a State.""  \n7. Substituted by  Act 55 of 1963,  Section 15 , for ""of profit and loss"" (W.e.f. 01.02.1964).  \n \nSection 31 - Submission of returns  \n \nThe accounts and balance -sheet referred to in section 29 together with the auditor\'s \nreport shall be published in the prescribed manner and three copies thereof shall \nbe furnished as returns to the Reserve Bank within three months from the end of  \nthe period to which they refer:  \nProvided that the Reserve Bank may in any case extend the said period of three \nmonths for the furnishing of such returns by a further period not exceeding \nthree months:  \n1[Provided further that a regional rural bank shall fu rnish such returns also to \nthe National Bank.]  \n___________________  \n1. Inserted by  Act 61 of 1981,  Section 61 and schedule II (w.e.f. 1- 10-1959.) \n \nSection 32 - Copies of balance -sheets and accounts to be sent to registrar  \n \n1[(1) Where a banking company in  any year furnishes its accounts and balance -\nsheet in accordance with the provisions of section 31, it shall at the same time send \nto the registrar three copies of such accounts and balance -sheet and of the auditor\'s \nreport, and where such copies are so se nt, it shall not be necessary to file with the \nregistrar, in the case of a public company, copies of the accounts and balance -\nsheet and of the auditor\'s report, and, in the case of a private company, copies of \nthe balance -sheet and of the auditor\'s report as required by sub -section (1) \nof Section 220 of the Companies Act, 1956 (1 of 1956); and the copies so sent \nshall be chargeable with the same fee and shall be dealt with in all respects as if \nthey were filed in accordance with that section.]  \n(2) When in pursuance of sub -section (2) of section 27 the Reserve Bank requires \nany additional statement or information in connection with the balance -sheet and \naccounts furnished under section 31, the banking company shall, when supplying such statement or informati on, send a copy   thereof to the Registrar.\n  \n1. Substituted by  Act 33 of 1959, section 19, for sub section (1) (w.e.f. 01.10.1959).  \n \nSection 33 - Display of audited balance -sheet by companies incorporated outside \nIndia  \n \nEvery banking company incorporated  1[outside India] shall, not later than the first \nMonday in August of any year in which it carries on business, display in a \nconspicuous place in its principal office and in every branch office  2[in India] a copy \nof its last audited balance -sheet and profi t and loss account prepared under section \n29, and shall keep the copy so displayed until replaced by a copy of the subsequent balance -sheet and profit and loss account so prepared, and every such banking \ncompany shall display in like manner copies of its complete audited balance- sheet \nand profit and loss account relating to its banking business as soon as they are available, and shall keep the copies so displayed until copies of such subsequent \naccounts are available.\n \n___________________  \n1. Substituted by  Act 20 of 1950, Section 3, for ""outside the States"".  \n2. Substituted by  Act 20 of 1950, Section 3, for ""in a State"".  \n \nSection 34 - Accounting provisions of this Act not retrospective  \n \nNothing in this Act shall apply to the preparation of accounts by a ban king company \nand the audit and submission thereof in respect of any accounting year which has \nexpired prior to the commencement of this Act, and notwithstanding the other \nprovisions of this Act, such accounts shall be prepared, audited and submitted in accordance with the law in force immediately before the commencement of this \nAct.\n \n \nSection 34A - Production of documents of confidential nature  \n \n1[34A. Production of documents of confidential nature  \n(1) Notwithstanding anything contained in  Section 11 of the Industrial Disputes \nAct, 1947 (14 of 1947), or any other law for the time being in force, no banking \ncompany shall, in any proceeding under the said Act or in any appeal or other \nproceeding arising therefrom or connected therewith, be compelled by any \nauthority before which such proceeding is pending to produce, or give inspection of, any of its books of account or other document or furnish or disclose any \nstatement or information, when the banking company claims that such document, \nstatement or inf ormation is of a confidential nature and that the production or \ninspection of such document or the furnishing or disclosure of such statement or \ninformation would involve disclosure of information relating to-  \n(a) any reserves not shown as such in its publ ished balance -sheet; or  \n(b) any particulars not shown therein in respect of provisions made for bad and doubtful debts and other usual or necessary provisions.\n \n(2) If, in any such proceeding in relation to any banking company other than the \nReserve Bank of  India, any question arises as to whether any amount out of the \nreserves or provisions referred to in sub -section (1) should be taken into account \nby the authority before which such proceeding is pending, the authority may, if it so thinks fit, refer the q uestion to the Reserve Bank and the Reserve Bank shall, \nafter taking into account principles of sound banking and all relevant circumstances \nconcerning the banking company, furnish to the authority a certificate stating that \nthe authority shall not take in to account any amount as such reserves and \nprovisions of the banking company or may take them into account only to the extent of the amount specified by it in the certificate, and the certificate of the \nReserve Bank on such question shall be final and shal l not be called in question in \nany such proceeding.\n \n2[(3) For the purposes of this section ""banking company"" includes the Reserve \nBank,  6[***], the Exim Bank, 3[the Reconstruction Bank],  4[the National Housing \nBank], the National Bank,  5[the Small Industries Bank]  7[the National Bank for \nFinancing Infrastructure and Development or the other development financial \ninstitution] the State Bank of India, a corresponding new bank, a regional rural \nbank and a subsidiary bank.]  \n___________________  \n1. Inserted by  Act 23 of 1960, Section 2.  \n2. Substituted by  Act 1 of 1984, Section 28, for sub -section (3)w.e.f. 15- 2-1984. \n3. Inserted by  Act 62 of 1984, Section 71 and Third Schedule w.e.f.20- 3-1985. \n4. Inserted by  Act 53 of 1987,  Section 56 and Second Schedule w.e.f.9- 7-1988. \n5. Inserted by  Act 39 of 1989,  Section 53 and Second Schedule, (w.e.f. 07.03.1990).  \n6. Omitted the words ""the Development Bank"" by the Industrial Development Bank (Transfer of Undertaking \nand Repeal) Act, 2003 . ']"
56,What is the provision regarding the furnishing of returns by a regional rural bank?,A regional rural bank shall furnish such returns also to the National Bank.,,"['opinion that it is necessary in the public interest or in the interest of the banking \ncompany or its depositors  so to do,  3[it may at any time by order direct that a \nspecial audit of the banking company\'s accounts, for any such transaction or class of transactions or for such period or periods as may be specified in the order, shall be conducted and may by the same  or a different order either appoint a person \nduly qualified under any law for the time being in force to be an auditor of companies or direct the auditor of the banking company himself to conduct such special audit] and the auditor shall comply with such directions and make a report \nof such audit to the Reserve Bank and forward a copy thereof to the company.\n \n(1c) The expenses of, or incidental to  3[the special audit] specified in the order \nmade by the Reserve Bank shall be borne by the banking company.]  \n(2) The auditor shall have the powers of, exercise the functions vested in, and discharge the duties and be subject to the liabilities and penalties imposed on, \nauditors of companies by  \n4[section 227  of the Companies Act, 1956 (1 of \n1956),  5[,and auditors,  if any, appointed by the law establishing, constituting or \nforming the banking company concerned.]  \n(3) In addition to the matters which under the aforesaid Act the auditor is required \nto state in his report, he shall, in the case of a banking company inco rporated  6[in \nIndia], state in his report, - \n(a) whether or not the information and explanation required by him have been \nfound to be satisfactory;  \n(b) whether or not the transactions of the company which have come to his notice have been within the powers of the company;\n \n(c) whether or not the returns received from branch offices of the company have been found adequate for the purposes of his audit;\n \n(d) whether the profit and loss account shows a true balance  7[of profit or loss] \nfor the period covered by s uch account;  \n(e) any other matter which he considers should be brought to the notice of the shareholders of the company.\n \n___________________  \n1. Substituted by  Act 58 of 1968, Section 8, for sub -section (1)w.e.f. 1- 2-1969. \n2. Inserted by  Act 58 of 1968, Sec tion 8 w.e.f. 1- 2-1969. \n3. Substituted by  Act 66 of 1988, Section 9, for certain words w.e.f.30- 12-1988. 4. Substituted by  Act 95 of 1956,  Section 14 and schedule., for "" Section 145 of the  Indian Companies Act, \n1913 (7 of 1913)"" w.e.f. 14- 1-1957. \n5. Insert ed by  Act 66 of 1988, Section 9, for certain words w.e.f.30- 12-1988. \n6. Substituted by  Act 20 of 1950, Section 3, for ""in a State.""  \n7. Substituted by  Act 55 of 1963,  Section 15 , for ""of profit and loss"" (W.e.f. 01.02.1964).  \n \nSection 31 - Submission of returns  \n \nThe accounts and balance -sheet referred to in section 29 together with the auditor\'s \nreport shall be published in the prescribed manner and three copies thereof shall \nbe furnished as returns to the Reserve Bank within three months from the end of  \nthe period to which they refer:  \nProvided that the Reserve Bank may in any case extend the said period of three \nmonths for the furnishing of such returns by a further period not exceeding \nthree months:  \n1[Provided further that a regional rural bank shall fu rnish such returns also to \nthe National Bank.]  \n___________________  \n1. Inserted by  Act 61 of 1981,  Section 61 and schedule II (w.e.f. 1- 10-1959.) \n \nSection 32 - Copies of balance -sheets and accounts to be sent to registrar  \n \n1[(1) Where a banking company in  any year furnishes its accounts and balance -\nsheet in accordance with the provisions of section 31, it shall at the same time send \nto the registrar three copies of such accounts and balance -sheet and of the auditor\'s \nreport, and where such copies are so se nt, it shall not be necessary to file with the \nregistrar, in the case of a public company, copies of the accounts and balance -\nsheet and of the auditor\'s report, and, in the case of a private company, copies of \nthe balance -sheet and of the auditor\'s report as required by sub -section (1) \nof Section 220 of the Companies Act, 1956 (1 of 1956); and the copies so sent \nshall be chargeable with the same fee and shall be dealt with in all respects as if \nthey were filed in accordance with that section.]  \n(2) When in pursuance of sub -section (2) of section 27 the Reserve Bank requires \nany additional statement or information in connection with the balance -sheet and \naccounts furnished under section 31, the banking company shall, when supplying such statement or informati on, send a copy   thereof to the Registrar.\n  \n1. Substituted by  Act 33 of 1959, section 19, for sub section (1) (w.e.f. 01.10.1959).  \n \nSection 33 - Display of audited balance -sheet by companies incorporated outside \nIndia  \n \nEvery banking company incorporated  1[outside India] shall, not later than the first \nMonday in August of any year in which it carries on business, display in a \nconspicuous place in its principal office and in every branch office  2[in India] a copy \nof its last audited balance -sheet and profi t and loss account prepared under section \n29, and shall keep the copy so displayed until replaced by a copy of the subsequent balance -sheet and profit and loss account so prepared, and every such banking \ncompany shall display in like manner copies of its complete audited balance- sheet \nand profit and loss account relating to its banking business as soon as they are available, and shall keep the copies so displayed until copies of such subsequent \naccounts are available.\n \n___________________  \n1. Substituted by  Act 20 of 1950, Section 3, for ""outside the States"".  \n2. Substituted by  Act 20 of 1950, Section 3, for ""in a State"".  \n \nSection 34 - Accounting provisions of this Act not retrospective  \n \nNothing in this Act shall apply to the preparation of accounts by a ban king company \nand the audit and submission thereof in respect of any accounting year which has \nexpired prior to the commencement of this Act, and notwithstanding the other \nprovisions of this Act, such accounts shall be prepared, audited and submitted in accordance with the law in force immediately before the commencement of this \nAct.\n \n \nSection 34A - Production of documents of confidential nature  \n \n1[34A. Production of documents of confidential nature  \n(1) Notwithstanding anything contained in  Section 11 of the Industrial Disputes \nAct, 1947 (14 of 1947), or any other law for the time being in force, no banking \ncompany shall, in any proceeding under the said Act or in any appeal or other \nproceeding arising therefrom or connected therewith, be compelled by any \nauthority before which such proceeding is pending to produce, or give inspection of, any of its books of account or other document or furnish or disclose any \nstatement or information, when the banking company claims that such document, \nstatement or inf ormation is of a confidential nature and that the production or \ninspection of such document or the furnishing or disclosure of such statement or \ninformation would involve disclosure of information relating to-  \n(a) any reserves not shown as such in its publ ished balance -sheet; or  \n(b) any particulars not shown therein in respect of provisions made for bad and doubtful debts and other usual or necessary provisions.\n \n(2) If, in any such proceeding in relation to any banking company other than the \nReserve Bank of  India, any question arises as to whether any amount out of the \nreserves or provisions referred to in sub -section (1) should be taken into account \nby the authority before which such proceeding is pending, the authority may, if it so thinks fit, refer the q uestion to the Reserve Bank and the Reserve Bank shall, \nafter taking into account principles of sound banking and all relevant circumstances \nconcerning the banking company, furnish to the authority a certificate stating that \nthe authority shall not take in to account any amount as such reserves and \nprovisions of the banking company or may take them into account only to the extent of the amount specified by it in the certificate, and the certificate of the \nReserve Bank on such question shall be final and shal l not be called in question in \nany such proceeding.\n \n2[(3) For the purposes of this section ""banking company"" includes the Reserve \nBank,  6[***], the Exim Bank, 3[the Reconstruction Bank],  4[the National Housing \nBank], the National Bank,  5[the Small Industries Bank]  7[the National Bank for \nFinancing Infrastructure and Development or the other development financial \ninstitution] the State Bank of India, a corresponding new bank, a regional rural \nbank and a subsidiary bank.]  \n___________________  \n1. Inserted by  Act 23 of 1960, Section 2.  \n2. Substituted by  Act 1 of 1984, Section 28, for sub -section (3)w.e.f. 15- 2-1984. \n3. Inserted by  Act 62 of 1984, Section 71 and Third Schedule w.e.f.20- 3-1985. \n4. Inserted by  Act 53 of 1987,  Section 56 and Second Schedule w.e.f.9- 7-1988. \n5. Inserted by  Act 39 of 1989,  Section 53 and Second Schedule, (w.e.f. 07.03.1990).  \n6. Omitted the words ""the Development Bank"" by the Industrial Development Bank (Transfer of Undertaking \nand Repeal) Act, 2003 . ']"
57,"What types of businesses can a banking company engage in, according to Section 6 of the Banking Regulation Act?","A banking company can engage in various types of businesses, including borrowing, lending, and dealing in various types of securities, bills, and other instruments, as well as acting as agents for governments, local authorities, and other persons, contracting for public and private loans, and managing and selling property.",,"['(a) the borrowing, raising, or taking up of money; the lending or advancing of \nmoney either upon or without security; the drawing, making, accepting, \ndiscounting, buying, selling, collecting and dealing in bills of exchange, \nhoondees, promissory notes, coupons, drafts, bills of lading, railway receipts, warran ts, debentures, certificates, scrips and other instruments and securities \nwhether transferable or negotiable or not; the granting and issuing of letters of \ncredit, traveller\'s cheques and circular notes; the buying, selling and dealing in \nbullion and speci e; the buying and selling of foreign exchange including foreign \nbank notes; the acquiring, holding, issuing on commission, underwriting and dealing in stock, funds, shares, debentures, debenture stock, bonds, \nobligations, securities and investments of all kinds; the purchasing and selling \nof bonds, scrips or other forms of securities on behalf of constituents or others, \nthe negotiating of loans and advances; the receiving of all kinds of bonds, scrips \nor valuables on deposit or for safe custody or otherwise ; the providing of safe \ndeposit vaults; the collecting and transmitting of money and securities;\n \n(b) acting as agents for any Government or local authority or any other person \nor persons; the carrying on of agency business of any description including the \nclearing and forwarding of goods, giving of receipts and discharges and \notherwise acting as an attorney on behalf of customers, but excluding the \nbusiness of a  1[managing agent or secretary and treasurer] of a company;  \n(c) contracting for public and privat e loans and negotiating and issuing the \nsame;  \n(d) the effecting, insuring, guaranteeing, underwriting, participating in manag -\ning and carrying out of any issue, public or private, of State, municipal or other \nloans or of shares, stock, debentures, or deben ture stock of any company, \ncorporation or association and the lending of money for the purpose of any such \nissue;  \n(e) carrying on and transacting every kind of guarantee and indemnity business;\n \n(f) managing, selling and realising any property which may com e into the \npossession of the company in satisfaction or part satisfaction of any of its claims;\n \n(g) acquiring and holding and generally dealing with any property or any right, \ntitle or interest in any such property which may form the security or part of the \nsecurity for any loans or advances or which may be connected with any such \nsecurity;  \n(h) undertaking and executing trusts;  (i) undertaking the administration of estates as executor, trustee or otherwise;  \n(j) establishing and supporting or aiding in the  establishment and support of \nassociations, institutions, funds, trusts and conveniences calculated to benefit \nemployees or ex -employees of the company or the dependents or connections \nof such persons; granting pensions and allowances and making payments \ntowards insurance; subscribing to or guaranteeing moneys for charitable or \nbenevolent objects or for any exhibition or for any public, general or useful \nobject;  \n(k) the acquisition, construction, maintenance and alteration of any building or \nworks necessary  or convenient for the purposes of the company;  \n(l) selling, improving, managing, developing, exchanging, leasing, mortgaging, \ndisposing of or turning into account or otherwise dealing with all or any part of \nthe property and rights of the company;  \n(m) acq uiring and undertaking the whole or any part of the business of any \nperson or company, when such business is of a nature enumerated or described in this sub - section;\n \n(n) doing all such other things as are incidental or conducive to the promotion or advanc ement of the business of the company;\n \n(o) any other form of business which the Central Government may, by \nnotification in the Official Gazette, specify as a form of business in which it is \nlawful for a banking company to engage.  \n(2) No banking company shal l engage in any form of business other than those \nreferred to in sub -section (1).  \n___________________  \n1. Substituted by  Act 33 of 1959, Section 4, for ""managing agent"" w.e.f. 1 -10-1959 \n \nSection 7 - Use of words  \n \n1[7. Use of words ""bank"", ""banker"", ""banking"" or ""banking company""  \n(1) No company other than a banking company shall use as part of its name  2[or \nin connection with its business] any of the words ""bank"", ""banker"" or ""banking"" and \nno company shall carry on the business of banking in India unl ess it uses as part \nof its name at least one of such words.  (2) No firm, individual or group of individuals shall, for the purpose of carrying on \nany business, use as part of its or his name any of the words ""bank"", ""banking"" or \n""banking company"".  \n(3) Noth ing in this section shall apply to  \n(a) a subsidiary of a banking company formed for one or more of the purposes \nmentioned in sub -section (1) of section 19, whose name indicates that it is a \nsubsidiary of that banking company;  \n(b) any association of banks formed for the protection of their mutual interests \nand registered under  section 25  of the Companies Act, 1956 (1 of 1956).]  \n___________________  \n1. Substituted by  Act 55 of 1963,  Section 7 , for the former section 7 w.e.f. 1- 2-1964. \n2. Inserted by  Act 1 of 1984 , Section 14 w.e.f. 15- 2-1984. \n \nSection 8 - Prohibition of trading  \n \nNotwithstanding anything contained in section 6 or in any contract, no banking \ncompany shall directly or indirectly deal in the buying or selling or bartering of \ngoods, except in con nection with the realisation of security given to or held by it,or \nengage in any trade, or buy, sell or barter goods for others otherwise than in \nconnection with bills of exchange received for collection or negotiation or with such \nof its business as is r eferred lo in clause (i) of sub -section (1) of section 6:  \n1[Provided that this section shall not apply to any such business as is specified \nin pursuance of clause (o) of sub -section (1) of section 6.  \nExplanation. --For the purposes of this section, ""goods"" means every kind of \nmovable property, other than actionable claims, stocks, shares, money, \nbullion and specie, and all instruments referred to in clause (a) of sub -\nsection (1) of section 6.  \n___________________  \n1. Substituted by  Act 1 of 1984, Section 15 w. e.f.15- 2-194 \n \nSection 9 - Disposal of non -banking assets  \n \nNotwithstanding anything contained in section 6, no banking company shall hold \nany immovable property howsoever acquired, except such as is required for its own \nuse, for any period exceeding seven years from the acquisition thereof or from the commencement  of this Act, whichever is later or any extension of such period as \nin this section provided, and such properly shall be disposed of within such period \nor extended period, as the case may be:  \nProvided that the banking company may, within the period of seve n years as \naforesaid deal or trade in any such property for the purpose of facilitating the \ndisposal thereof:  \nProvided further that the Reserve Bank may in any particular case extend the \naforesaid period of seven years by such period not exceeding five yea rs where \nit is satisfied that such extension would be in the interests of the depositors of \nthe banking company.  \n \nSection 10 - Prohibition of employment of managing agents and restrictions on \ncertain forms of employment  \n \n1[10. Prohibition of employment of managing agents and restrictions on certain \nforms of employment  \n(1) No banking company - \n(a) shall employ or be managed by a managing agent; or  \n(b) shall employ or continue the employment of any person - \n(i) who is, or at any time has been, adjudicated ins olvent, or has suspended \npayment or has compounded with hi creditors, or who is, or has been, convicted by a criminal court of an offence involving moral turpitude; or\n \n(ii) whose remuneration or part of whose remuneration takes the form of commission or of  a share in the profits of the company:\n \n2[Provided that nothing contained in this sub -clause shall apply to the \npayment by a banking company of - \n(a) any bonus in pursuance of a settlement or award arrived at or \nmade under any law relating to industrial disputes or in accordance \nwith any scheme framed by such banking company or in accordance \nwith the usual practice prevailing in banking busi ness;  \n(b) any commission to any broker (including guarantee broker), \ncashier -contractor, clearing and forwarding ag ent, auctioneer or any \nother person, employed by the banking company under a contract \notherwise than as a regular member of the staff of the company; or]  ']"
58,What is the provision for acquiring shares in a banking company?,The Reserve Bank may specify the minimum percentage of shares to be acquired in a banking company if it considers that the purpose for which the shares are proposed to be acquired by the applicant warrants such minimum shareholding.,,"['(7) The Reserve Bank may specify the minimum percentage of shares to be \nacquired in a banking company if it considers that the purpose for which the shares \nare proposed to be acquired by the applicant warrants such minimum shareholding.  \n(8) The Reserve Bank may, if it is satisfied that any person or persons acting in concert wi th him holding shares or voting rights in excess of five per cent. of the \ntotal voting rights of all the shareholders of the banking company, are not fit and proper to hold such shares or voting rights, pass an order directing that such person or persons acting in concert with him shall not, in the aggregate, exercise voting rights on poll in excess of five per cent. of the total voting rights of all the \nshareholders of the banking company:\n \nProvided that the Reserve Bank shall not pass any such order withou t giving \nan opportunity of being heard to such person or persons acting in concert \nwith him.\'.  \n________________________  \n1. Inserted by the Banking Laws (Amendment) Act, 2012  (Act No. 4 of 2013) w.e.f. 18.01.2013.  \n \nSection 13 -  Restriction on commission, b rokerage, discount, etc. on sale of \nshares  \n \nNotwithstanding anything to the contrary contained in  1[sections 76  and 79 of the \nCompanies Act, 1956 (1 of1956)], no banking company shall pay out directly or \nindirectly by way of commission, brokerage, discount or remuneration in any form \nin respect of any shares issued by it, any amount exceeding in the aggregate two \nand one -half per cent of the  2[price at which the said shares are issued.].  \n3[Explanation, --For the removal of doubts, it is hereby declared that the \nexpression ""price at which the said shares are issued"" shall include amount or \nvalue of premium on such shares.]  \n___________________  \n1. Substituted by  Act 95 of 1956 , Section 14  and Schedule I, for "" Section 105 and 105A of the  Indian \nCompanies Act, 1913 (7 of 1913)"" w.e.f.14- 1-1957. \n2. Substituted by the Banking Laws (Amendment) Act, 2012  (Act No. 4 of 2013) w.e.f. 18.01.2013 for the \nfollowing: - \n""paid-up value of the said shares""  \n3. Inserted by the Banking Laws (Amendment) Act, 2012  (Act No. 4 of 2013) w.e.f. 18.01.2013.  \n Section 14 - Prohibition of charge on unpaid capital  \n \nNo banking company shall create any charge upon any unpaid capital of the \ncompany, and any such charge shall be invalid.  \n \nSection 14A - Prohibition of floating charge on assets  \n \n1[14A. Prohibition of floating charge on assets  \n(1) Notwithstanding anything contained in section 6, no banking company shall create a floating charge on the undertaking or any property of the company or any \npart thereof, unless the creation of such floating charge is certified in writing by \nthe Reserve Bank ascot being detrimental to the interests of the depositors of such \ncompany.\n \n(2) Any such charge created without obtaining the certificate of the Reserve Bank shall be invalid.\n \n(3) Any banking  company aggrieved by the refusal of a certificate under sub section \n(1) may, within ninety days from the date on which such refusal is communicated to it, appeal to the Central Government.\n \n \n1. Inserted by  Act 33 of 1959, Section 9w.e.f. 1 -10-1959. \n \nSection 15 - Restrictions as to payment of dividend  \n \n1[(1)] No banking company shall pay any dividend on its shares until all its \ncapitalised expenses (including preliminary expenses, organisation expenses, \nshare -selling commission, brokerage, amounts of loss es incurred and any other \nitem of expenditure not represented by tangible assets) have been completely \nwritten off.  \n2[(2)] Notwithstanding anything to the contrary contained in sub -section (1) or in \nthe Companies Act, 1956(1 of 1956), a banking company may  pay dividends on its \nshares without writing off - \n(i) the depreciation, if any, in the value of its investments in approved securities \nin any case where such depreciation has not actually been capitalised or \notherwise accounted for as a loss;  \n(ii) the depreciation, if any, in the value of its investments in shares, debentures \nor bonds (other than approved securities) in any case where adequate provision for such depreciation has been made to the satisfaction of the auditor of the \nbanking compan y; \n(iii) the bad debts, if any, in any case where adequate provision for such debts \nhas been made to the satisfaction of the auditor of the banking company. ]  \n___________________  \n1. Section 15 renumbered as sub -section (1) of that section by  Act 33 of 1959 , Section 10 w.e.f. 1- 10-1959. \n2. Inserted by  Act 33 of 1959, Section 10 w.e.f. 1- 10-1959. \n \nSection 16 - Prohibition of common directors  \n \n1[16. Prohibition of common directors  \n2[(1) No banking company incorpo rated in India shall have as a director in its Board \nof directors any person who is a director of any other banking company.  \n(2) If immediately before the commencement of the Banking Companies \n(Amendment) Act, 1956 (95 of 1956),any person holding office as a director of a \nbanking company is also a director of companies which among themselves are \nentitled to exercise voting rights in excess of twenty percent of the total voting rights of all the shareholders of the banking company, he shall, within such period \nfrom such commencement as the Reserve Ba nk may specify in this behalf -\n \n(a) either resign his office as a director of the banking company; or  \n(b) choose such number of companies as among themselves are not entitled to \nexercise voting rights in excess of twenty per cent, of the total voting rights  of \nall the shareholders of the banking company as companies in which he wishes \nto continue to hold the office of a director and resign his office as a director in \nthe other companies.]  \n3[(3) Nothing in sub -section (1) shall apply to, or in relation to, an y director \nappointed by the Reserve Bank.]]  \n___________________  \n1. Substituted by  Act 95 of 1956,  Section 5 , for section 16 w.e.f.14- 1-1957. \n2. Substituted by  Act 20 of 1994, Section 7 w.e.f. 22- 3-1994. \n3. Inserted by  Act 58 of 1968, Section 4 w.e.f. 1- 2-1969. \n  \nSection 17 - Reserve Fund  \n \n1[17. Reserve Fund  \n(1) Every banking company incorporated in India shall create a reserve fund \nand 2[* * *]shall, out of the balance of profit of each year as disclosed in the profit \nand loss account prepared under section 29 and before any dividend is declared, \ntransfer to the reserve fund a sum equivalent to not less than twenty percent of \nsuch profit.  \n3[(1A) Notwithstanding anything contained in sub -section(1), the Central \nGovernment may, on the recommendation of the Reserve Bank and having regard \nto the adequacy of the paid -up capital and reserves of a banking company in \nrelation to its deposit liabilities, declare by order in writing that the provisions of \nsub-section (1) shall not apply to the banking company fo r such period as may be \nspecified in the order:  \nProvided that no such order shall be made unless, at the time it is made, the \namount in the reserve fund under sub -section (1), together with the amount in \nthe share premium account is not less than the paid -up capital of the banking \ncompany.]  \n(2) Where a banking company appropriates any sum or sums from the reserve fund or the share premium account, it shall, within twenty -one days from the date of \nsuch appropriation, report the fact to the Reserve Bank, expl aining the \ncircumstances relating to such appropriation:\n \nProvided that the Reserve Bank may, in any particular case, extend the said period of twenty -one days by such period as it thinks fit or condone any delay \nin the making of such report.\n \n \n1. Substitut ed by  Act 33 of 1959, Section1, for section 17 and 18 w.e.f. 1- 10-1959. \n2. Certain words omitted by  Act 36 of 1962, Section 3.  \n3. Inserted by  Act 36 of 1962, Section 3.  \n \n  \n  \nSection 18 - Cash reserve  \n \n1[18. Cash reserve  \n(1) Every banking company, not being a scheduled bank,  5[shall maintain in India \non a daily basis] by way of cash reserve with itself or by way of balance in a current \naccount with the Reserve Bank, or byway of net balance in current accounts or in one or more of the aforesaid ways, a s um equivalent to  \n6[such per cent.] of the \ntotal of its demand and time liabilities in India as on the last Friday of the second preceding fortnight  \n7[as the Reserve Bank may specify, by notification in the Official \nGazette, from time to time, having regard  to the needs of securing the monetary \nstability in the country] and shall submit to the Reserve Bank before the twentieth \nday of every month are turn showing the amount so held on alternate Fridays \nduring a month with particulars of its demand and time li abilities in India on such \nFridays or if any such Friday is a public holiday under the Negotiable Instruments \nAct, 1881 (26 of 1881), at the close of business on the preceding working day.  \nExplanation. --In this section, and in section 24, - \n(a) ""liabilities  in India"" shall not include - \n(i) the paid -up capital or the reserves or any credit balance in the profit \nand loss account of the banking company;  \n(ii) any advance taken from the Reserve Bank  9[***] or from the Exim \nBank  2[or from the Reconstruction Bank]  3[or from the National Housing \nBank] or from the National Bank  4[, or from the Small Industries \nBank]  10[or from the National Bank for Financing Infrastructure and \nDevelopment or from the other development financial institution] by the banking company;\n \n(iii) in the case of a Regional Rural Bank, also any loan taken by such \nbank from its Sponsor Bank;  \n(b) ""fortnight"" shall mean the period from Saturday to the second following Friday, both days inclusive;\n \n(c) ""net balance in current accounts"" shall, in relat ion to a banking company, \nmean the excess, if any, of the aggregate of the credit balances in current \naccount maintained by that banking company with State Bank of India or a \nsubsidiary bank or a corresponding new bank over the aggregate of the \ncredit bala nces in current account held by the said banks with such banking \ncompany;  ']"
59,What should REs do to ensure the security of customer information during transmission via SMS/e-mails?,REs should redact/mask customer information such as account numbers/card numbers/other sensitive information when transmitted via SMS/e-mails.,,"['6 \n i) Operational risk including  fraud risk;  \nj) Business continuity  and service availability ; \nk) Compliance with extant cyber security requirements ; and  \nl) Compatibility  aspects . \n \nSuch assessment shall cover the surrounding ecosystem  as well . The assessment \nof risks sh all address the need to protect and secure payment data1 and evaluate \nthe resilience of systems . The internal Risk and Control Self -Assessment (RCSA) \nexercise shall cover the risks (inherent) & controls vis -à-vis the probability and \nimpact of threats to arrive at  residual risk.  In such an exercise, it is imperative for  \nREs to maintain database of all systems and applications storing customer data in \nthe payment ecosystem and compliance with applicable PCI standards in each of \nthe system s (notwithstanding mandatory requirement s of certification/ standard \naccreditation) .   \n9. REs shall evaluate the risks associated with the chosen technology platforms, \napplication architecture, both on the server and client side. Further, REs should \nundertake a review of the risk scenarios and existing security measures based on \nincidents affecting their services, before any  major c hange to the infrastructure or \nprocedures is made or, when, any new threats are identified through risk monitoring \nactivities.  Further, unused or unwanted features of the platform sho uld be closely \ncontrolled to minimi se risk . \n10. REs shall develop sound internal control systems  and take into account the \noperational risk  before offering digital payment  products and related services. This \nwould include ensur ing that adequate safeguards are in place to protect integrity of \ndata, customer confidentiality and security of data.   \n11. REs shall ensure that the digital payment  architecture is robust and scalable,  \ncommensurat e with the transaction volumes and customer growth. The IT strategy \nof the RE shall ensure that  a robust capacity management plan is in place to m eet \nevolving demand.  REs shall also put in place review mechanism of IT/  IT Security \narchitecture and technology platform overhaul  on a periodic basis based on Board-\napproved policy . \n12. REs shall have necessary capacity, systems and procedures in place to periodically \ntest the backed -up data, application pertaining to digital products to ensure recovery \n                                                           \n1 customer data; customer and beneficiary account details; payment credentials; transaction data;  7 \n without loss of transactions  or audit -trails . These facilities should be tested at least \non a half -yearly  basis for digital payment products and services.    \nOther Generic  Security Controls  \n13. The communication protocol in the digital payment  channels (especially over \nInternet) shall adhere to a secure standard .  An appropriate level of encryption and \nsecurity shall be implemented in the digital payment ecosystem . \n14. Web applications providing the digital payment  products and services should not \nstore sensitive information in HTML hidden fields, cookies, or any other client -side \nstorage to avoid any compromise in the integrity of the data.  \n15. REs shall implement Web Application Firewall (WAF) solution and DDoS mitigation \ntechniques to secure the digital payment  products and services offered over \nInternet .   \n16. The key length (for symmetric/  asymmetric encryption, hashing), algorithms (for \nencryption, signing, exchange of  keys, creation of message digest, random number \ngenerators), cipher suites , digital certificates  and applicable protocols used in \ntransmission channels, processing of data, authentication purpose, shall be strong, \nadopting internationally accepted and published standards that are not deprecated/  \ndemonstrated to be insecure/  vulnerable and the configurations involved in \nimplementing such controls are in general, compliant with extant instructions and \nthe law of the land.  \n17. REs shall renew their  digital certificates  used in digital payment ecosystem  well in \ntime. \n18. The mobile application2 and internet banking application should have effective \nlogging and monitoring capabilities to track user activity, security changes and \nidentify anomalous behaviour and transactions.  \nApplication Security Life Cycle  (ASLC)  \n19. REs shall implement multi- tier application architecture,  segregating application, \ndatabase and presentation layer in the digital payment  products  and services.  \n20. REs shall follow a ‘secure by design’ approach in the development of digital \npayment  products and services.  REs shall ensure that digital payment  applications \nare inherently more secure by embedding security within their development \nlifecycle.  \n                                                           \n2 Mobile banking, mobile payment applications of the regulated entities  8 \n 21. REs shall explicitly define security objectives (including protection of customer \ninformation/ data) during (a) requirements gathering , (b) designing , (c) \ndevelopment , (d) testing including source code review , (e) implementation, \nmaintenance & monitoring and (f) dec ommissioning phases of the digital payment  \napplications.  \n22. REs (including those partnering with other entities to co- brand/  co-develop \napplications) shall adopt and incorporate a threat modelling approach during \napplication lifecycle management into their policies, processes, guidelines and \nprocedures.  \n23. For digital payment applications that are licensed by a third party vendor, REs shall \nhave an escrow arrangement for the source code for ensuring continuity of services \nin case the vendor defaults or is unabl e to provide services.  \n24. REs shall conduct security testing including review of source code , Vulnerability \nAssessment (VA) and Penetration Testing (PT) of their digital payment  applications  \nto assure that the application is secure for putting through transactions while \npreserving confidentiality and integrity of the data that is stored and transmitted.  \nSuch testing should invariably  cover compliance with various standards like  \nOWASP.  If the source code is not owned by the RE, the n, in such cases, the RE \nshall obtain a certificate from the application developer stating that the application \nis free of known vulnerabilities, malware s and any covert channels in the code. In \nthis context, \na) The VA shall be conducted at least on a half -yearly basis ; PT shall be \nconducted at  least on a yearly basis . In addition, VA/PT shall be conducted as \nand when any new IT Infrastructure or digital payment application is introduced  \nor when any major change is performed in application or infrastructure;  \nb) Testing related to review of source code/ certification shall be conducted/ \nobtained. This shall continue on a yearly  basis , if changes/ upgrades have been \nmade to the application during the year ; \nc) Testing/  Certification should broadly address the objective that the product/  \nversion/module(s) functions only in a manner that it is intended to do, is \ndeveloped as per the best secure design/  coding practices and standards, \naddressing known flaws/threats due to insecure coding ; and \nd) Penal provisions shall be included by the RE into third- party contractual \narrangements for any non- compliance by the application provider.  \n \n25. REs may also run automated VA scanning tools to automatically scan all systems \non the network that are critical, public facing or store customer sensitive data on a \ncontinuous/ more frequent basis.  9 \n 26. REs shall compare the results from earlier vulnerability scans to verify / ascertain \nthat vulnerabilities are  addressed either by patching, implementing a compensating \ncontrol, or documenting and accepting the residual risk with necessary approval \nand t hat t here is no recurrence of the known vulnerabilities. The identified \nvulnerabilities should be fixed in a time-bound manner.  \n27. REs shall e nsure tha t all vulnerability scanning is performed in authenticated mode \neither with agents running locally on the system to analys e the security configuration \nor with remote scanners that are given administrative rights on the system being \ntested.3 \n28. REs shall verify and thoroughly test the functionality  (to validate whether the system \nmeets the functional  requirements/  specifications ) and security controls of payment \nproduct s and services  before its launch/  moving to the production environment.  \n29. REs shall institute a mechanism to actively monitor for the non- genuine/ \nunauthorised/ malicious  applications  (with similar name/  features) on popular  app-\nstores and the W eb and respond accordingly to bring them down.  \n30. The server at the RE ’s end should have adequate checks and balances to ensure \nthat no transaction is carried out through non-genuine/ unauthorised digital payment  \nproducts / applications  and the authentication process is robust, secure and \ncentralised.  \n31.  The security controls for digital payment  applications must focus on how these \napplications handle, store and protect payment data. The APIs for secure data \nstorage and communication have to be implemented and used correctly in order to \nbe effective. REs shall refer to standards such as OWASP -MASVS, OWASP -ASVS \nand other relevant OWASP standards, security and data protection guidelines in \nISO 12812, threat catalogues and guides developed by NIST (including for \nBluetooth and LTE security ), for application security and other protection measures. \nSuch testing has to necessarily verify for vulnerabilities including, but not limited to OWASP/  OWASP Mobile Top 10, application security guidelines/ requirements \ndeveloped/ shared by operating system pr oviders/ OEMs.  \n32. REs shall redact/ mask customer information such as account numbers/ card \nnumbers/ other sensitive information when transmitted via SMS / e-mails .   \n \n                                                           \n3 SANS Crit ical Security Controls  ']"
60,"How should REs manage card PIN generation, validation, and printing for payment transactions?","REs should use a Hardware Security Module (HSM) to securely generate and print card PINs. PIN decryption and validation should be performed at the HSM. Furthermore, the HSM should have controls in place to prevent PIN outputting in a weaker format, such as by disabling weak format options.",,"[""17 \n 60. REs shall ensure device binding of mobile application5.  \n61. Considering  that the additional factor of authentication and mobile application may \nreside on the same mobile device in the case of mobile banking,  mobile payments,  \nREs may consider  implement ing alternatives to SMS -based OTP authentication \nmechanisms .   \n62. The mobile application should require re- authentication whenever the device or \napplication remains unused for a designated period and each time the user \nlaunches the application. Applications must be able to identify new network \nconnections or connections from unsecured networks like unsecured Wi -Fi \nconnections  and must implement appropriate authentication / checks / measures  to \nperform transactions under those circumstances.  \n63. The mobile application should not store/ retain  sensitive personal/ consumer \nauthentication inf ormation such as user IDs, passwords, keys, hashes, hard coded \nreferences on the device and the application should securely wipe any sensitive \ncustomer information from memory when the customer/ user exits the application.  \n64. REs shall ensure that their mobile application limi t the writing of sensitive \ninformation into ‘temp’ files. The sensitive information written in such files must be \nsuitably encrypted/ masked/ hashed and stored securely.  \n65. REs may consider  designing anti -malware capabilities into their mobile \napplications.  \n66. REs shall ensure that the usage of raw (visible) SQL queries in mobile applications \nto fetch or update data from databases is avoided. Mobile applications should be \nsecured from SQL injec tion type of vulnerabilities.  Sensitive information should  be \nwritten to the database in an encrypted form.  Web content, as part of the mobile \napplication’s layout,  should not be loaded if errors are detected during SSL/  TLS \nnegotiation. Certificate errors on account of the certificate not being signed by a \nrecognised certificate authority ; expiry/  revocation of the certificate must be \ndisplayed to the user .  \n                                                           \n5  The device binding should be preferably implemented through a combination of hardware, software and service information.  \nIn case, the RE allows multiple devices to be registered, then, (a) the user must be notified of every new device registration on \nmultiple channels such as registered mobile number, email or phone call and (b) in relation to the mobile application, RE must \nmaintain a record of all registered devices, providing the user a facility to disable a registered device.  18 \n Chapter V  \nCARD PAYMENTS SECURITY  \nIn addition to the controls prescribed in Chapter II, the following instructions are \napplicable to the REs offering/ intending to issue cards (credit/  debit / prepaid)  (physical \nor virtual) to their customers:   \n67. REs shall follow various p ayment card standards (over and above PCI -DSS and \nPA-DSS6) as per Payment Card Industry ( PCI) prescriptions  for comprehensive \npayment card security as per applicability/  readiness of updated versions of the \nstandards such as –  \na) PCI-PIN (secure management, processing, and transmission of personal \nidentification number (PIN) data) ; \nb) PCI-PTS (security approval framework addresses the logical and/  or physical \nprotection of cardholder and other sensitive data at point of interaction (POI) \ndevices and hardware security modules (HSMs);  \nc) PCI-HSM  (securing cardholder -authentication applications and processes \nincluding key generation, key injection, PIN verification, secure encryption algorithm , etc.); and \nd) PCI-P2PE (security standard that requires payment card information to be \nencrypted instantly upon its initial swipe and then securely transferred directly \nto the payment processor) . \n68. REs should ensure that terminals installed at the merchants for capturing card \ndetails for payments or otherwise are validated against the PCI -P2PE program to \nuse PCI -approved P2PE solutions; P oS terminals with PIN entry installed at the \nmerchants for capturing card payments (including the double swipe terminals) are  \napproved by the PCI -PTS program.  \n69. Acquirer s shall secure their card payment infrastructure (Unique Key P er Terminal \n– UKPT or Derived Unique Key P er Transaction – DUKPT/ Terminal Line \nEncryption – TLE).    \n70. The security controls to be implemented at HSM are:  \na) The HSMs should have logging enabled, the logs must themselves be tamper \nproof ;  \nb) HSM can become a single point of failure. This needs to be mitigated by ‘clustering ’ for high availability and ensure secure backups ;  \nc) Access to the HSM should be controlled through Access Control Lists  (ACLs);   \nd) Separate ACLs should be maintained for each individual application to ensure \napplication level isolation;   \ne) All access to HSM should be managed and monitored using a robust Privileged Identity and Access Management solution;  \nf) Decryption and validation of keys, PIN should be done at HSM ; \n                                                           \n6 PCI Secure Software Standard, a PCI standard within PCI Software Security Framework (SSF) will replace PA -DSS as the \nprimary standard for securing payment software in 2022. (ref: PCI security standards website)  19 \n g) Card PIN generation and printing should be directly at system connected HSM ; \nh) CVV generation and validation should be done at HSM ;  \ni) Ensure HSM is implemented with secure PIN block format  with controls to \ndisable outputting PIN block in weaker format ; \nj) Secure key management for HSMs (such as LMKs , etc.); and \nk) Security of the physical keys of the HSM device should be properly maintained . \n \n71. REs shall implement the following for improving the security posture of the ATM:  \na) Implement security measures such as BIOS password, disabling USB ports, \ndisabling auto- run facility, applying the latest patches of operating system and \nother softwares, terminal security solution, time- based admin access, etc ;   \nb) Implement anti -skimming an d whitelisting solution; and  \nc) Upgrade all the ATMs with supported versions of operating system. Use of ATMs that have unsupported operating systems shall be prohibited.  \n \n72. REs shall ensure robust surveillance/ monitoring of card transactions (especially \noverseas cash withdrawals) and setting up of rules and limits commensurate with \ntheir risk appetites. REs shall take up with the card network  and/ or ATM network \nas the case may be,  to put in place transaction limits at Card, BIN as well as at the \nRE level. Such limits shall be mandatorily set at the card network switch itself. Limits \ncould be mandated both for domestic as well as international transactions \nseparately. REs shall put in place transaction control mechanisms with necessary caps (restrictions o n transactions), if any of the limits set as per the above \nrequirement is breached. A periodic review mechanism of such limits set as per the risk appetite of the RE shall be put in place as per the Board- approved policy. REs \nshall institute a mechanism to monitor breaches, if any, on a 24x7 basis, including \nweekends, long holidays and put in place a robust incident response mechanism to \nmitigate the fraud loss, on account of suspicious transactions, if any. REs shall \nensure that card details of the customers are not stored in plain text at the RE and \nits vendor(s) locations, systems and applications. REs shall also ensure that the \nprocessing of card details in readable format is performed in a secure manner to \nstrictly avoid data leakage of sensitive custom er information.  \n73. REs that use card data scanning tools to identify unencrypted (clear text)  payments \ncard data in their ecosystem especially during audits shall adhere to the following \nsafety measures:  \na) Any tool (procured by/ from a third- party) for the pur pose of scanning of \nunencrypted card data should first be tested in a test environment to understand \nthe scope and impact of the tool’s capabilities ;  \nb) The scanning tool should be installed only in the RE's premises on their devices ; \nc) Card data scanning shou ld not be done remotely ; ""]"
61,What does the PCI-HSM refer to?,PCI-HSM refers to Payment Card Industry - Hardware Security Module.,,"['20 \n d) The discovered data, if any,  must preferably reside in the scanning tool. \nExportable card data must be appropriately masked. (No data, even masked, \nmust be taken out of the RE’s premises/ infrastructure) ; and \ne) Limited access to serv ice providers to conduct the scan or analyse the data, if \nat all, must be provided only on the RE’s devic es. \n \n \n \n      \n \n         \n         \n \n \n 21 \n Acronyms  \nACL  Access Control List  \nASLC   Application Security Life Cycle  \nATM   Automated Teller Machine  \nBIN  Bank Identification Number  \nBIOS   Basic Input/  Output System  \nCAPTCHA   Completely Automated Public Turing test to tell Computers and \nHumans Apart  \nCVV  Card Verification Value  \nDDoS   Distributed Denial of Service  \nDNS   Domain Name Server  \nDoR Department of Regulation  \nDoS  Department of Supervision  \nDPSS   Department of Payment and Settlement System s \nDUKPT   Derived Unique Key per Transaction  \nEMV   Europay, Mastercard, and Visa  \nFSP Functionality, Security and Performance  \nHSM   Hardware Security Module  \nHTML   HyperText Markup Language  \nIP  Internet Protocol  \nIT  Information Technology  \nIVR  Interactive Voice Response  \nLMK Local Master Key  \nMCC   Merchant Category Code  \nMITB   Man-in-The Browser attack  \nMITM   Man-In-the-Middle attack  \nNIST   National Institute of Standards and Technology  \nOEM   Original Equipment Manufacturer  \nOTP  One Time Password  \nOWASP   Open Web Application Security Project  \nOWASP -ASVS   Open Web Application Security Project  – Application Security \nVerification Standard  \nOWASP -MASVS   Open Web Appl ication Security Project  – Mobile Application \nSecurity Verification Standard  \nPA-DSS  Payment Application Data Security Standard  22 \n PCI  Payment Card Industry  \nPCI-DSS  Payment Card Industry -Data Security Standard  \nPCI-HSM  Payment Card Industry -Hardware Security Module  \nPCI-P2PE   Payment Card Industry -Point to Point Encryption  \nPCI-PTS  Payment Card Industry -PIN Transaction Security  \nPIN  Personal Identification Number  \nPKI  Public Key Infrastructure  \nPoS  Point of Sale  \nPT Penetration Testing  \nRBI  Reserve Bank of India  \nRCSA   Risk Control Self -Assessment  \nREs  Regulated Entities  \nSIM  Subscriber Identification Module  \nSOP   Standard Operating Procedure  \nSQL  Structured Query Language  \nSSL  Secure Socket Layer  \nTLE  Terminal Line Encryption  \nTLS  Transport Layer Security  \nUAT User Acceptance Test  \nUKPT   Unique Key Per terminal  \nUSB  Universal Serial Bus  \nVA Vulnerability Assessment  \nVPA  Virtual Payment Address  \nWAF   Web Application Firewall  \n ']"
62,What should REs do to ensure the security of customer data in the payment ecosystem?,"REs should maintain a database of all systems and applications storing customer data, comply with applicable PCI standards, and ensure that adequate safeguards are in place to protect the integrity of data, customer confidentiality, and security of data.",,"['6 \n i) Operational risk including  fraud risk;  \nj) Business continuity  and service availability ; \nk) Compliance with extant cyber security requirements ; and  \nl) Compatibility  aspects . \n \nSuch assessment shall cover the surrounding ecosystem  as well . The assessment \nof risks sh all address the need to protect and secure payment data1 and evaluate \nthe resilience of systems . The internal Risk and Control Self -Assessment (RCSA) \nexercise shall cover the risks (inherent) & controls vis -à-vis the probability and \nimpact of threats to arrive at  residual risk.  In such an exercise, it is imperative for  \nREs to maintain database of all systems and applications storing customer data in \nthe payment ecosystem and compliance with applicable PCI standards in each of \nthe system s (notwithstanding mandatory requirement s of certification/ standard \naccreditation) .   \n9. REs shall evaluate the risks associated with the chosen technology platforms, \napplication architecture, both on the server and client side. Further, REs should \nundertake a review of the risk scenarios and existing security measures based on \nincidents affecting their services, before any  major c hange to the infrastructure or \nprocedures is made or, when, any new threats are identified through risk monitoring \nactivities.  Further, unused or unwanted features of the platform sho uld be closely \ncontrolled to minimi se risk . \n10. REs shall develop sound internal control systems  and take into account the \noperational risk  before offering digital payment  products and related services. This \nwould include ensur ing that adequate safeguards are in place to protect integrity of \ndata, customer confidentiality and security of data.   \n11. REs shall ensure that the digital payment  architecture is robust and scalable,  \ncommensurat e with the transaction volumes and customer growth. The IT strategy \nof the RE shall ensure that  a robust capacity management plan is in place to m eet \nevolving demand.  REs shall also put in place review mechanism of IT/  IT Security \narchitecture and technology platform overhaul  on a periodic basis based on Board-\napproved policy . \n12. REs shall have necessary capacity, systems and procedures in place to periodically \ntest the backed -up data, application pertaining to digital products to ensure recovery \n                                                           \n1 customer data; customer and beneficiary account details; payment credentials; transaction data;  7 \n without loss of transactions  or audit -trails . These facilities should be tested at least \non a half -yearly  basis for digital payment products and services.    \nOther Generic  Security Controls  \n13. The communication protocol in the digital payment  channels (especially over \nInternet) shall adhere to a secure standard .  An appropriate level of encryption and \nsecurity shall be implemented in the digital payment ecosystem . \n14. Web applications providing the digital payment  products and services should not \nstore sensitive information in HTML hidden fields, cookies, or any other client -side \nstorage to avoid any compromise in the integrity of the data.  \n15. REs shall implement Web Application Firewall (WAF) solution and DDoS mitigation \ntechniques to secure the digital payment  products and services offered over \nInternet .   \n16. The key length (for symmetric/  asymmetric encryption, hashing), algorithms (for \nencryption, signing, exchange of  keys, creation of message digest, random number \ngenerators), cipher suites , digital certificates  and applicable protocols used in \ntransmission channels, processing of data, authentication purpose, shall be strong, \nadopting internationally accepted and published standards that are not deprecated/  \ndemonstrated to be insecure/  vulnerable and the configurations involved in \nimplementing such controls are in general, compliant with extant instructions and \nthe law of the land.  \n17. REs shall renew their  digital certificates  used in digital payment ecosystem  well in \ntime. \n18. The mobile application2 and internet banking application should have effective \nlogging and monitoring capabilities to track user activity, security changes and \nidentify anomalous behaviour and transactions.  \nApplication Security Life Cycle  (ASLC)  \n19. REs shall implement multi- tier application architecture,  segregating application, \ndatabase and presentation layer in the digital payment  products  and services.  \n20. REs shall follow a ‘secure by design’ approach in the development of digital \npayment  products and services.  REs shall ensure that digital payment  applications \nare inherently more secure by embedding security within their development \nlifecycle.  \n                                                           \n2 Mobile banking, mobile payment applications of the regulated entities  8 \n 21. REs shall explicitly define security objectives (including protection of customer \ninformation/ data) during (a) requirements gathering , (b) designing , (c) \ndevelopment , (d) testing including source code review , (e) implementation, \nmaintenance & monitoring and (f) dec ommissioning phases of the digital payment  \napplications.  \n22. REs (including those partnering with other entities to co- brand/  co-develop \napplications) shall adopt and incorporate a threat modelling approach during \napplication lifecycle management into their policies, processes, guidelines and \nprocedures.  \n23. For digital payment applications that are licensed by a third party vendor, REs shall \nhave an escrow arrangement for the source code for ensuring continuity of services \nin case the vendor defaults or is unabl e to provide services.  \n24. REs shall conduct security testing including review of source code , Vulnerability \nAssessment (VA) and Penetration Testing (PT) of their digital payment  applications  \nto assure that the application is secure for putting through transactions while \npreserving confidentiality and integrity of the data that is stored and transmitted.  \nSuch testing should invariably  cover compliance with various standards like  \nOWASP.  If the source code is not owned by the RE, the n, in such cases, the RE \nshall obtain a certificate from the application developer stating that the application \nis free of known vulnerabilities, malware s and any covert channels in the code. In \nthis context, \na) The VA shall be conducted at least on a half -yearly basis ; PT shall be \nconducted at  least on a yearly basis . In addition, VA/PT shall be conducted as \nand when any new IT Infrastructure or digital payment application is introduced  \nor when any major change is performed in application or infrastructure;  \nb) Testing related to review of source code/ certification shall be conducted/ \nobtained. This shall continue on a yearly  basis , if changes/ upgrades have been \nmade to the application during the year ; \nc) Testing/  Certification should broadly address the objective that the product/  \nversion/module(s) functions only in a manner that it is intended to do, is \ndeveloped as per the best secure design/  coding practices and standards, \naddressing known flaws/threats due to insecure coding ; and \nd) Penal provisions shall be included by the RE into third- party contractual \narrangements for any non- compliance by the application provider.  \n \n25. REs may also run automated VA scanning tools to automatically scan all systems \non the network that are critical, public facing or store customer sensitive data on a \ncontinuous/ more frequent basis.  9 \n 26. REs shall compare the results from earlier vulnerability scans to verify / ascertain \nthat vulnerabilities are  addressed either by patching, implementing a compensating \ncontrol, or documenting and accepting the residual risk with necessary approval \nand t hat t here is no recurrence of the known vulnerabilities. The identified \nvulnerabilities should be fixed in a time-bound manner.  \n27. REs shall e nsure tha t all vulnerability scanning is performed in authenticated mode \neither with agents running locally on the system to analys e the security configuration \nor with remote scanners that are given administrative rights on the system being \ntested.3 \n28. REs shall verify and thoroughly test the functionality  (to validate whether the system \nmeets the functional  requirements/  specifications ) and security controls of payment \nproduct s and services  before its launch/  moving to the production environment.  \n29. REs shall institute a mechanism to actively monitor for the non- genuine/ \nunauthorised/ malicious  applications  (with similar name/  features) on popular  app-\nstores and the W eb and respond accordingly to bring them down.  \n30. The server at the RE ’s end should have adequate checks and balances to ensure \nthat no transaction is carried out through non-genuine/ unauthorised digital payment  \nproducts / applications  and the authentication process is robust, secure and \ncentralised.  \n31.  The security controls for digital payment  applications must focus on how these \napplications handle, store and protect payment data. The APIs for secure data \nstorage and communication have to be implemented and used correctly in order to \nbe effective. REs shall refer to standards such as OWASP -MASVS, OWASP -ASVS \nand other relevant OWASP standards, security and data protection guidelines in \nISO 12812, threat catalogues and guides developed by NIST (including for \nBluetooth and LTE security ), for application security and other protection measures. \nSuch testing has to necessarily verify for vulnerabilities including, but not limited to OWASP/  OWASP Mobile Top 10, application security guidelines/ requirements \ndeveloped/ shared by operating system pr oviders/ OEMs.  \n32. REs shall redact/ mask customer information such as account numbers/ card \nnumbers/ other sensitive information when transmitted via SMS / e-mails .   \n \n                                                           \n3 SANS Crit ical Security Controls  ']"
63,What is the purpose of the Access Control List (ACL) in the context of the document?,"Access Control List (ACL) is used to define the rules that control access to resources, but its specific purpose is not mentioned in the provided text snippet.",,"['20 \n d) The discovered data, if any,  must preferably reside in the scanning tool. \nExportable card data must be appropriately masked. (No data, even masked, \nmust be taken out of the RE’s premises/ infrastructure) ; and \ne) Limited access to serv ice providers to conduct the scan or analyse the data, if \nat all, must be provided only on the RE’s devic es. \n \n \n \n      \n \n         \n         \n \n \n 21 \n Acronyms  \nACL  Access Control List  \nASLC   Application Security Life Cycle  \nATM   Automated Teller Machine  \nBIN  Bank Identification Number  \nBIOS   Basic Input/  Output System  \nCAPTCHA   Completely Automated Public Turing test to tell Computers and \nHumans Apart  \nCVV  Card Verification Value  \nDDoS   Distributed Denial of Service  \nDNS   Domain Name Server  \nDoR Department of Regulation  \nDoS  Department of Supervision  \nDPSS   Department of Payment and Settlement System s \nDUKPT   Derived Unique Key per Transaction  \nEMV   Europay, Mastercard, and Visa  \nFSP Functionality, Security and Performance  \nHSM   Hardware Security Module  \nHTML   HyperText Markup Language  \nIP  Internet Protocol  \nIT  Information Technology  \nIVR  Interactive Voice Response  \nLMK Local Master Key  \nMCC   Merchant Category Code  \nMITB   Man-in-The Browser attack  \nMITM   Man-In-the-Middle attack  \nNIST   National Institute of Standards and Technology  \nOEM   Original Equipment Manufacturer  \nOTP  One Time Password  \nOWASP   Open Web Application Security Project  \nOWASP -ASVS   Open Web Application Security Project  – Application Security \nVerification Standard  \nOWASP -MASVS   Open Web Appl ication Security Project  – Mobile Application \nSecurity Verification Standard  \nPA-DSS  Payment Application Data Security Standard  22 \n PCI  Payment Card Industry  \nPCI-DSS  Payment Card Industry -Data Security Standard  \nPCI-HSM  Payment Card Industry -Hardware Security Module  \nPCI-P2PE   Payment Card Industry -Point to Point Encryption  \nPCI-PTS  Payment Card Industry -PIN Transaction Security  \nPIN  Personal Identification Number  \nPKI  Public Key Infrastructure  \nPoS  Point of Sale  \nPT Penetration Testing  \nRBI  Reserve Bank of India  \nRCSA   Risk Control Self -Assessment  \nREs  Regulated Entities  \nSIM  Subscriber Identification Module  \nSOP   Standard Operating Procedure  \nSQL  Structured Query Language  \nSSL  Secure Socket Layer  \nTLE  Terminal Line Encryption  \nTLS  Transport Layer Security  \nUAT User Acceptance Test  \nUKPT   Unique Key Per terminal  \nUSB  Universal Serial Bus  \nVA Vulnerability Assessment  \nVPA  Virtual Payment Address  \nWAF   Web Application Firewall  \n ']"
64,What should the REs define for each digital payment product or service?,"Product-level limits on the level of acceptable security risk, document specific security objectives and performance criteria including quantitative benchmarks for evaluating the success of the security built into the digital payment product or service.",,"['1 \n  \nRBI/2020 -21/74 \nDoS.CO. CSITE. SEC. No.1852/ 31.01.015 /2020- 21                         February 18, 20 21 \nThe Chairman/ Managing Director/ Chief Executive Officer  \nAll Scheduled Commercial Banks excluding R RBs/  \nSmall Finance Bank s/Payments Banks/ Credit Card issuing NBFCs.  \n \n \nMadam/ Dear Sir,  \nMaster Direction on Digital Payment Security Controls  \nPlease refer to para II (7) of the Statement on Developmental and Regulatory Policies \nof the Bi -monthly Monetary Policy Statement for 2020- 21 dated December 4 , 2020 \n(extract given below ). The Master Direction provides  necessary guidelines for the \nregulated entities to set up a robust governance structure and implement common \nminimum standards of security controls for digital payment  products and services .  \nYours faithfully , \n (T.K. Rajan)  \nChief General Manager  \n \nDigital Payment Security Controls  \nGoing by the pre -eminent role being played by digital payment systems in India, RBI \ngives highest importance to the security controls around it. Now it is proposed to issue Reserve Bank of India (Digital Payment Security Controls) Directions  2020,  for \nregulated entities to set up a robust governance structure for such systems and implement common minimum standards of security controls for channels like internet, mobile banking, card payments, among others. While the guidelines will be technology and platform agnostic, i t will create an enhanced and enabling environment for \ncustomers to use digital payment products in more safe and secure manner. Necessary guidelines will be issued separately.  \n \n \n    \n2 \n  \n  \nIndex  \nIntroduction  \nChapter I - Preliminary  \nShort Title and Commencement  \nApplicability  \nDefinitions  \nChapter II  - General Controls  \nGovernance and Management of Security Risks  \nOther Generic Security Controls  \nApplication Security Life Cycle (ASLC)  \n Authentication Framework  \nFraud Risk Management  \nReconciliation Mechanism  \nCustomer Protection, Awareness and Grievance Redressal Mecha nism  \nChapter III  - Internet Banking Security Controls  \nChapter IV  - Mobile Payments Application Security Controls  \nChapter V  - Card Payments Security  \nAcronyms  \n     \n \n         \n \n \n   3 \n  \nMaster Direction on Digital Payment  Security Controls  \n \nINTRODUCTION  \nIn exercise of the powers conferred by the Banking Regulation Act, 1949, the Reserve \nBank of India Act, 1934  and Payment and Settlement Systems Act, 2007,  the Reserve \nBank, being satisfied that it is necessary and expedient in the public interest so to do, \nhereby, issues the directions hereinafter specified.  \nCHAPTER – I \nPRELIMINARY  \n1. Short Title and Commencement  \na. These directions shall be called the Reserve Bank of India ( Digital Payment  \nSecurity Controls) d irections, 2021. \nb. These directions shall come into effect six  months from the day they are placed  \non the official website of the Reserve Bank of India (RBI) . However, in respect \nof instructions already issued either by Department of Payment and Settlement \nSystem s (DPSS) , Department of Regulation (DoR) or Department of \nSupervision (DoS) of RBI including those to select Regulated Entities ( REs), by \nway of circular  or advisory,  the timeline would be with immediate effect  or as \nper the timelines already prescribed.   \n2. Applicability  \nThe provisions of these directions shall apply to the following R egulated Entities (RE s): \na) Sche duled Commercial Banks ( excluding Regional Rural Banks);  \nb) Small Finance Bank s;  \nc) Payment s Banks ; and \nd) Credit card issuing NBFCs . \n3. Definitions  \nAll expressions unless defined herein shall have the same meaning as have been \nassigned to them under the Banking Regulation Act, 1949, Reserve Bank of India Act, \n1934, Payment and Settlement Systems Act, 2007 or  Information Technology Act, \n2000/ Information Technology (Amendment) Act, 2008 and Rules made thereunder , \nany statutory modification or re- enactment thereto or as used in commercial parlance, \nas the case may be.  \n 4 \n CHAPTER – II \nGENERAL CONTROLS  \nGovernance and Management of Security Risks  \n4. REs shall formulate a policy for digital payment products and services with the \napproval of their Board.  The contours of the polic y, while d iscussing the parameters \nof any “ new product ” including its alignment with the overall business strategy and \ninherent risk of the product, risk management/ mitigation measures , compliance \nwith regulatory instructions,  customer experience,  etc., should explicitly discuss \nabout payment security requirements from Functionality, Security and Performance  \n(FSP)  angles such as:  \na) Necessary controls to protect the confidentiality of  customer data and integrity \nof data and processes  associated with the digital product/ services offered;  \nb) Availability of requisite infrastructure e.g. human resources, technology, etc.  \nwith necessary back up;  \nc) Assurance that the p ayment product is built in a secure manner offering robust \nperformance ensuring safety , consistency  and rolled out after necessary testing \nfor achieving  desired FSP;   \nd) Capacity building and expansion with scalability  (to meet the growth for efficient \ntransaction processing) ;   \ne) Minimal customer service disruption with high availability  of systems/ channels  \n(to have minimal technical declines) ; \nf) Efficient and effective dispute resolution mechanism and handling  of customer \ngrievance; and \ng) Adequate and appropriate review mechanism followed by swift corrective \naction, in case any one of the above requirements is hampered or having high \npotential to get hampered.  \n \nThe Board and Senior Management shall be responsible for implementation of this \npolicy . The policy shall  be reviewed periodically, at least on a yearly basis. REs may \nformulate this policy separately for its different digital products or include the same as part of their overall product policy. F urther, the policy document should require \nthat every digital payment product/ services offered address es the mechanics, clear \ndefinition of starting point , critical intermittent stages/ points  and end point in the \ndigital payment cycle, security aspects,  validations till the digital payment is settled, \nclear pictorial representation of digital path and exception handling. In addition,  \nsigning off of the above requirements, mechanism  for carrying out U ser Acceptance \nTests (UAT) in multiple stages before roll out, sign off from multiple stakeholders \n(post UAT) and data archiv al requirements shall also be taken in to account . The \nneed for an external assessment of the entire process including the logic, build and 5 \n security aspects o f the application(s) supporting the digital product should be clearly \narticulated.   \n5. REs shall incorporate appropriate processes into their governance and risk \nmanagement programs for identifying, analysing, monitoring and managing the \nspecific risks, incl uding compliance risk  and fraud risk,  associated with the portfolio \nof digital payment  products and services  on a continual basis and in a holistic \nmanner. The Board/ Senior Management of REs  shall have appropriate \nperformance monitoring systems/ key performance indicators for assessing \nwhether the product or service offered through digital payment  channels meet \noperational and security norms . \n6. As part of this process, the REs shall  define product -level limits on the level of \nacceptable security risk, document specific security objectives and performance \ncriteria including quantitative benchmarks for evaluating the success of the security \nbuilt into the digital payment  product or service, periodically compare actual results \nwith projections and qualitative benchmarks to detect and address adverse trends or concerns in a timely manner  and modify the business plan/  strategy  involving the \nproduct, when appropriate,  based o n the security performance of the product or \nservice.  \n7. REs shall have trained resources  with necessary expertise to manage the digital \npayment  infrastructure. Wherever the REs are dependent on third party service \nproviders, adequate oversight and controls for monitoring the activities of the third \nparty personnel , in line with RBI guidelines  on outsourcing , shall be put in place.   \n8. REs s hall conduct risk assessments with regard to the safety and security of digital \npayment  products and associated processes and services as well as suitability and \nappropriateness of the same vis -a-vis the target users , both prior to establishing the \nservice(s) and regularly thereafter. The risk assessment should take into account – \na) The technology stack and solutions used;  \nb) Known vulnerabilities at each of the touchpoints of the digital product and the \nremedial action taken by the entity;  \nc) Dependence on third party service providers and oversight over such providers;  \nd) Risk arising out of integration of digital payment  platform with other systems  \nboth internal and external to the RE, including c ore system s and systems of \npayment systems operators , etc.;  \ne) The customer experience, convenience and technology adoption required to use such products;  \nf) Reconciliation process ; \ng) Interoperability aspects ; \nh) Data storage, security and privacy protection as per extant laws/ instructions ; ']"
65,What should REs do to ensure the security of digital payment applications during the testing phase?,"REs should conduct security testing including review of source code, VA, and PT, and verify that the application is secure for putting through transactions while preserving confidentiality and integrity of the data that is stored and transmitted.",,"['6 \n i) Operational risk including  fraud risk;  \nj) Business continuity  and service availability ; \nk) Compliance with extant cyber security requirements ; and  \nl) Compatibility  aspects . \n \nSuch assessment shall cover the surrounding ecosystem  as well . The assessment \nof risks sh all address the need to protect and secure payment data1 and evaluate \nthe resilience of systems . The internal Risk and Control Self -Assessment (RCSA) \nexercise shall cover the risks (inherent) & controls vis -à-vis the probability and \nimpact of threats to arrive at  residual risk.  In such an exercise, it is imperative for  \nREs to maintain database of all systems and applications storing customer data in \nthe payment ecosystem and compliance with applicable PCI standards in each of \nthe system s (notwithstanding mandatory requirement s of certification/ standard \naccreditation) .   \n9. REs shall evaluate the risks associated with the chosen technology platforms, \napplication architecture, both on the server and client side. Further, REs should \nundertake a review of the risk scenarios and existing security measures based on \nincidents affecting their services, before any  major c hange to the infrastructure or \nprocedures is made or, when, any new threats are identified through risk monitoring \nactivities.  Further, unused or unwanted features of the platform sho uld be closely \ncontrolled to minimi se risk . \n10. REs shall develop sound internal control systems  and take into account the \noperational risk  before offering digital payment  products and related services. This \nwould include ensur ing that adequate safeguards are in place to protect integrity of \ndata, customer confidentiality and security of data.   \n11. REs shall ensure that the digital payment  architecture is robust and scalable,  \ncommensurat e with the transaction volumes and customer growth. The IT strategy \nof the RE shall ensure that  a robust capacity management plan is in place to m eet \nevolving demand.  REs shall also put in place review mechanism of IT/  IT Security \narchitecture and technology platform overhaul  on a periodic basis based on Board-\napproved policy . \n12. REs shall have necessary capacity, systems and procedures in place to periodically \ntest the backed -up data, application pertaining to digital products to ensure recovery \n                                                           \n1 customer data; customer and beneficiary account details; payment credentials; transaction data;  7 \n without loss of transactions  or audit -trails . These facilities should be tested at least \non a half -yearly  basis for digital payment products and services.    \nOther Generic  Security Controls  \n13. The communication protocol in the digital payment  channels (especially over \nInternet) shall adhere to a secure standard .  An appropriate level of encryption and \nsecurity shall be implemented in the digital payment ecosystem . \n14. Web applications providing the digital payment  products and services should not \nstore sensitive information in HTML hidden fields, cookies, or any other client -side \nstorage to avoid any compromise in the integrity of the data.  \n15. REs shall implement Web Application Firewall (WAF) solution and DDoS mitigation \ntechniques to secure the digital payment  products and services offered over \nInternet .   \n16. The key length (for symmetric/  asymmetric encryption, hashing), algorithms (for \nencryption, signing, exchange of  keys, creation of message digest, random number \ngenerators), cipher suites , digital certificates  and applicable protocols used in \ntransmission channels, processing of data, authentication purpose, shall be strong, \nadopting internationally accepted and published standards that are not deprecated/  \ndemonstrated to be insecure/  vulnerable and the configurations involved in \nimplementing such controls are in general, compliant with extant instructions and \nthe law of the land.  \n17. REs shall renew their  digital certificates  used in digital payment ecosystem  well in \ntime. \n18. The mobile application2 and internet banking application should have effective \nlogging and monitoring capabilities to track user activity, security changes and \nidentify anomalous behaviour and transactions.  \nApplication Security Life Cycle  (ASLC)  \n19. REs shall implement multi- tier application architecture,  segregating application, \ndatabase and presentation layer in the digital payment  products  and services.  \n20. REs shall follow a ‘secure by design’ approach in the development of digital \npayment  products and services.  REs shall ensure that digital payment  applications \nare inherently more secure by embedding security within their development \nlifecycle.  \n                                                           \n2 Mobile banking, mobile payment applications of the regulated entities  8 \n 21. REs shall explicitly define security objectives (including protection of customer \ninformation/ data) during (a) requirements gathering , (b) designing , (c) \ndevelopment , (d) testing including source code review , (e) implementation, \nmaintenance & monitoring and (f) dec ommissioning phases of the digital payment  \napplications.  \n22. REs (including those partnering with other entities to co- brand/  co-develop \napplications) shall adopt and incorporate a threat modelling approach during \napplication lifecycle management into their policies, processes, guidelines and \nprocedures.  \n23. For digital payment applications that are licensed by a third party vendor, REs shall \nhave an escrow arrangement for the source code for ensuring continuity of services \nin case the vendor defaults or is unabl e to provide services.  \n24. REs shall conduct security testing including review of source code , Vulnerability \nAssessment (VA) and Penetration Testing (PT) of their digital payment  applications  \nto assure that the application is secure for putting through transactions while \npreserving confidentiality and integrity of the data that is stored and transmitted.  \nSuch testing should invariably  cover compliance with various standards like  \nOWASP.  If the source code is not owned by the RE, the n, in such cases, the RE \nshall obtain a certificate from the application developer stating that the application \nis free of known vulnerabilities, malware s and any covert channels in the code. In \nthis context, \na) The VA shall be conducted at least on a half -yearly basis ; PT shall be \nconducted at  least on a yearly basis . In addition, VA/PT shall be conducted as \nand when any new IT Infrastructure or digital payment application is introduced  \nor when any major change is performed in application or infrastructure;  \nb) Testing related to review of source code/ certification shall be conducted/ \nobtained. This shall continue on a yearly  basis , if changes/ upgrades have been \nmade to the application during the year ; \nc) Testing/  Certification should broadly address the objective that the product/  \nversion/module(s) functions only in a manner that it is intended to do, is \ndeveloped as per the best secure design/  coding practices and standards, \naddressing known flaws/threats due to insecure coding ; and \nd) Penal provisions shall be included by the RE into third- party contractual \narrangements for any non- compliance by the application provider.  \n \n25. REs may also run automated VA scanning tools to automatically scan all systems \non the network that are critical, public facing or store customer sensitive data on a \ncontinuous/ more frequent basis.  9 \n 26. REs shall compare the results from earlier vulnerability scans to verify / ascertain \nthat vulnerabilities are  addressed either by patching, implementing a compensating \ncontrol, or documenting and accepting the residual risk with necessary approval \nand t hat t here is no recurrence of the known vulnerabilities. The identified \nvulnerabilities should be fixed in a time-bound manner.  \n27. REs shall e nsure tha t all vulnerability scanning is performed in authenticated mode \neither with agents running locally on the system to analys e the security configuration \nor with remote scanners that are given administrative rights on the system being \ntested.3 \n28. REs shall verify and thoroughly test the functionality  (to validate whether the system \nmeets the functional  requirements/  specifications ) and security controls of payment \nproduct s and services  before its launch/  moving to the production environment.  \n29. REs shall institute a mechanism to actively monitor for the non- genuine/ \nunauthorised/ malicious  applications  (with similar name/  features) on popular  app-\nstores and the W eb and respond accordingly to bring them down.  \n30. The server at the RE ’s end should have adequate checks and balances to ensure \nthat no transaction is carried out through non-genuine/ unauthorised digital payment  \nproducts / applications  and the authentication process is robust, secure and \ncentralised.  \n31.  The security controls for digital payment  applications must focus on how these \napplications handle, store and protect payment data. The APIs for secure data \nstorage and communication have to be implemented and used correctly in order to \nbe effective. REs shall refer to standards such as OWASP -MASVS, OWASP -ASVS \nand other relevant OWASP standards, security and data protection guidelines in \nISO 12812, threat catalogues and guides developed by NIST (including for \nBluetooth and LTE security ), for application security and other protection measures. \nSuch testing has to necessarily verify for vulnerabilities including, but not limited to OWASP/  OWASP Mobile Top 10, application security guidelines/ requirements \ndeveloped/ shared by operating system pr oviders/ OEMs.  \n32. REs shall redact/ mask customer information such as account numbers/ card \nnumbers/ other sensitive information when transmitted via SMS / e-mails .   \n \n                                                           \n3 SANS Crit ical Security Controls  ']"
66,What is the significance of the PIN in the document?,PIN refers to the Personal Identification Number used in financial transactions.,,"['20 \n d) The discovered data, if any,  must preferably reside in the scanning tool. \nExportable card data must be appropriately masked. (No data, even masked, \nmust be taken out of the RE’s premises/ infrastructure) ; and \ne) Limited access to serv ice providers to conduct the scan or analyse the data, if \nat all, must be provided only on the RE’s devic es. \n \n \n \n      \n \n         \n         \n \n \n 21 \n Acronyms  \nACL  Access Control List  \nASLC   Application Security Life Cycle  \nATM   Automated Teller Machine  \nBIN  Bank Identification Number  \nBIOS   Basic Input/  Output System  \nCAPTCHA   Completely Automated Public Turing test to tell Computers and \nHumans Apart  \nCVV  Card Verification Value  \nDDoS   Distributed Denial of Service  \nDNS   Domain Name Server  \nDoR Department of Regulation  \nDoS  Department of Supervision  \nDPSS   Department of Payment and Settlement System s \nDUKPT   Derived Unique Key per Transaction  \nEMV   Europay, Mastercard, and Visa  \nFSP Functionality, Security and Performance  \nHSM   Hardware Security Module  \nHTML   HyperText Markup Language  \nIP  Internet Protocol  \nIT  Information Technology  \nIVR  Interactive Voice Response  \nLMK Local Master Key  \nMCC   Merchant Category Code  \nMITB   Man-in-The Browser attack  \nMITM   Man-In-the-Middle attack  \nNIST   National Institute of Standards and Technology  \nOEM   Original Equipment Manufacturer  \nOTP  One Time Password  \nOWASP   Open Web Application Security Project  \nOWASP -ASVS   Open Web Application Security Project  – Application Security \nVerification Standard  \nOWASP -MASVS   Open Web Appl ication Security Project  – Mobile Application \nSecurity Verification Standard  \nPA-DSS  Payment Application Data Security Standard  22 \n PCI  Payment Card Industry  \nPCI-DSS  Payment Card Industry -Data Security Standard  \nPCI-HSM  Payment Card Industry -Hardware Security Module  \nPCI-P2PE   Payment Card Industry -Point to Point Encryption  \nPCI-PTS  Payment Card Industry -PIN Transaction Security  \nPIN  Personal Identification Number  \nPKI  Public Key Infrastructure  \nPoS  Point of Sale  \nPT Penetration Testing  \nRBI  Reserve Bank of India  \nRCSA   Risk Control Self -Assessment  \nREs  Regulated Entities  \nSIM  Subscriber Identification Module  \nSOP   Standard Operating Procedure  \nSQL  Structured Query Language  \nSSL  Secure Socket Layer  \nTLE  Terminal Line Encryption  \nTLS  Transport Layer Security  \nUAT User Acceptance Test  \nUKPT   Unique Key Per terminal  \nUSB  Universal Serial Bus  \nVA Vulnerability Assessment  \nVPA  Virtual Payment Address  \nWAF   Web Application Firewall  \n ']"
67,What should the REs do with regard to risk management of digital payment products and services?,"The REs should identify, analyse, monitor, and manage specific risks, including compliance risk and fraud risk, associated with the portfolio of digital payment products and services on a continual basis and in a holistic manner.",,"['1 \n  \nRBI/2020 -21/74 \nDoS.CO. CSITE. SEC. No.1852/ 31.01.015 /2020- 21                         February 18, 20 21 \nThe Chairman/ Managing Director/ Chief Executive Officer  \nAll Scheduled Commercial Banks excluding R RBs/  \nSmall Finance Bank s/Payments Banks/ Credit Card issuing NBFCs.  \n \n \nMadam/ Dear Sir,  \nMaster Direction on Digital Payment Security Controls  \nPlease refer to para II (7) of the Statement on Developmental and Regulatory Policies \nof the Bi -monthly Monetary Policy Statement for 2020- 21 dated December 4 , 2020 \n(extract given below ). The Master Direction provides  necessary guidelines for the \nregulated entities to set up a robust governance structure and implement common \nminimum standards of security controls for digital payment  products and services .  \nYours faithfully , \n (T.K. Rajan)  \nChief General Manager  \n \nDigital Payment Security Controls  \nGoing by the pre -eminent role being played by digital payment systems in India, RBI \ngives highest importance to the security controls around it. Now it is proposed to issue Reserve Bank of India (Digital Payment Security Controls) Directions  2020,  for \nregulated entities to set up a robust governance structure for such systems and implement common minimum standards of security controls for channels like internet, mobile banking, card payments, among others. While the guidelines will be technology and platform agnostic, i t will create an enhanced and enabling environment for \ncustomers to use digital payment products in more safe and secure manner. Necessary guidelines will be issued separately.  \n \n \n    \n2 \n  \n  \nIndex  \nIntroduction  \nChapter I - Preliminary  \nShort Title and Commencement  \nApplicability  \nDefinitions  \nChapter II  - General Controls  \nGovernance and Management of Security Risks  \nOther Generic Security Controls  \nApplication Security Life Cycle (ASLC)  \n Authentication Framework  \nFraud Risk Management  \nReconciliation Mechanism  \nCustomer Protection, Awareness and Grievance Redressal Mecha nism  \nChapter III  - Internet Banking Security Controls  \nChapter IV  - Mobile Payments Application Security Controls  \nChapter V  - Card Payments Security  \nAcronyms  \n     \n \n         \n \n \n   3 \n  \nMaster Direction on Digital Payment  Security Controls  \n \nINTRODUCTION  \nIn exercise of the powers conferred by the Banking Regulation Act, 1949, the Reserve \nBank of India Act, 1934  and Payment and Settlement Systems Act, 2007,  the Reserve \nBank, being satisfied that it is necessary and expedient in the public interest so to do, \nhereby, issues the directions hereinafter specified.  \nCHAPTER – I \nPRELIMINARY  \n1. Short Title and Commencement  \na. These directions shall be called the Reserve Bank of India ( Digital Payment  \nSecurity Controls) d irections, 2021. \nb. These directions shall come into effect six  months from the day they are placed  \non the official website of the Reserve Bank of India (RBI) . However, in respect \nof instructions already issued either by Department of Payment and Settlement \nSystem s (DPSS) , Department of Regulation (DoR) or Department of \nSupervision (DoS) of RBI including those to select Regulated Entities ( REs), by \nway of circular  or advisory,  the timeline would be with immediate effect  or as \nper the timelines already prescribed.   \n2. Applicability  \nThe provisions of these directions shall apply to the following R egulated Entities (RE s): \na) Sche duled Commercial Banks ( excluding Regional Rural Banks);  \nb) Small Finance Bank s;  \nc) Payment s Banks ; and \nd) Credit card issuing NBFCs . \n3. Definitions  \nAll expressions unless defined herein shall have the same meaning as have been \nassigned to them under the Banking Regulation Act, 1949, Reserve Bank of India Act, \n1934, Payment and Settlement Systems Act, 2007 or  Information Technology Act, \n2000/ Information Technology (Amendment) Act, 2008 and Rules made thereunder , \nany statutory modification or re- enactment thereto or as used in commercial parlance, \nas the case may be.  \n 4 \n CHAPTER – II \nGENERAL CONTROLS  \nGovernance and Management of Security Risks  \n4. REs shall formulate a policy for digital payment products and services with the \napproval of their Board.  The contours of the polic y, while d iscussing the parameters \nof any “ new product ” including its alignment with the overall business strategy and \ninherent risk of the product, risk management/ mitigation measures , compliance \nwith regulatory instructions,  customer experience,  etc., should explicitly discuss \nabout payment security requirements from Functionality, Security and Performance  \n(FSP)  angles such as:  \na) Necessary controls to protect the confidentiality of  customer data and integrity \nof data and processes  associated with the digital product/ services offered;  \nb) Availability of requisite infrastructure e.g. human resources, technology, etc.  \nwith necessary back up;  \nc) Assurance that the p ayment product is built in a secure manner offering robust \nperformance ensuring safety , consistency  and rolled out after necessary testing \nfor achieving  desired FSP;   \nd) Capacity building and expansion with scalability  (to meet the growth for efficient \ntransaction processing) ;   \ne) Minimal customer service disruption with high availability  of systems/ channels  \n(to have minimal technical declines) ; \nf) Efficient and effective dispute resolution mechanism and handling  of customer \ngrievance; and \ng) Adequate and appropriate review mechanism followed by swift corrective \naction, in case any one of the above requirements is hampered or having high \npotential to get hampered.  \n \nThe Board and Senior Management shall be responsible for implementation of this \npolicy . The policy shall  be reviewed periodically, at least on a yearly basis. REs may \nformulate this policy separately for its different digital products or include the same as part of their overall product policy. F urther, the policy document should require \nthat every digital payment product/ services offered address es the mechanics, clear \ndefinition of starting point , critical intermittent stages/ points  and end point in the \ndigital payment cycle, security aspects,  validations till the digital payment is settled, \nclear pictorial representation of digital path and exception handling. In addition,  \nsigning off of the above requirements, mechanism  for carrying out U ser Acceptance \nTests (UAT) in multiple stages before roll out, sign off from multiple stakeholders \n(post UAT) and data archiv al requirements shall also be taken in to account . The \nneed for an external assessment of the entire process including the logic, build and 5 \n security aspects o f the application(s) supporting the digital product should be clearly \narticulated.   \n5. REs shall incorporate appropriate processes into their governance and risk \nmanagement programs for identifying, analysing, monitoring and managing the \nspecific risks, incl uding compliance risk  and fraud risk,  associated with the portfolio \nof digital payment  products and services  on a continual basis and in a holistic \nmanner. The Board/ Senior Management of REs  shall have appropriate \nperformance monitoring systems/ key performance indicators for assessing \nwhether the product or service offered through digital payment  channels meet \noperational and security norms . \n6. As part of this process, the REs shall  define product -level limits on the level of \nacceptable security risk, document specific security objectives and performance \ncriteria including quantitative benchmarks for evaluating the success of the security \nbuilt into the digital payment  product or service, periodically compare actual results \nwith projections and qualitative benchmarks to detect and address adverse trends or concerns in a timely manner  and modify the business plan/  strategy  involving the \nproduct, when appropriate,  based o n the security performance of the product or \nservice.  \n7. REs shall have trained resources  with necessary expertise to manage the digital \npayment  infrastructure. Wherever the REs are dependent on third party service \nproviders, adequate oversight and controls for monitoring the activities of the third \nparty personnel , in line with RBI guidelines  on outsourcing , shall be put in place.   \n8. REs s hall conduct risk assessments with regard to the safety and security of digital \npayment  products and associated processes and services as well as suitability and \nappropriateness of the same vis -a-vis the target users , both prior to establishing the \nservice(s) and regularly thereafter. The risk assessment should take into account – \na) The technology stack and solutions used;  \nb) Known vulnerabilities at each of the touchpoints of the digital product and the \nremedial action taken by the entity;  \nc) Dependence on third party service providers and oversight over such providers;  \nd) Risk arising out of integration of digital payment  platform with other systems  \nboth internal and external to the RE, including c ore system s and systems of \npayment systems operators , etc.;  \ne) The customer experience, convenience and technology adoption required to use such products;  \nf) Reconciliation process ; \ng) Interoperability aspects ; \nh) Data storage, security and privacy protection as per extant laws/ instructions ; ']"
68,What are the requirements for providing information about digital payment products and services to customers?,"REs shall ensure that customers are provided information about the risks, benefits, and liabilities of using digital payment products and its related services before they subscribe to them. Customers shall also be informed clearly and precisely on their rights, obligations, and responsibilities on matters relating to digital payments, and any problems that may arise from its service unavailability, processing errors, and security breaches.",,"[""13 \n procedure in the first instance and first use  after each update of the digital payment  \napplication or after major updates to secure and safe usage guidelines.  \n43. REs shall mention/ incorporate a section on the digital payment  application clearly \nspecifying the process and procedure (with forms/ contact information, etc.) to lodge \nconsumer grievances. A mechanism to keep this information periodically updated \nshall also be put in place. The reporting facility on the application shall provide an \noption for registering a grievance.  Customer dispute handling, reporting and \nresolution procedures, including the expected tim elines for the RE's response \nshould be clearly defined.   \n44.  REs shall adhere to extant instructions4, updated from time to time , to put in place \nsystem/s for online dispute resolution for resolving disputes and grievances of \ncustomers pertaining to digital payments . \n45. REs shall educate c ustomers about the need to maintain the physical and logical \nsecurity of their d evices accessing digital payment  products and services including \nrecommending secure/  regular installation of operating system and application \nupdates, downloading applications only from authori sed sources , having anti -\nmalware/  anti-virus  applications on devices , etc. \n46. REs shall ensure that its customers are provided information about the risks , \nbenefits  and liabilities of using digital payment  products and its related services \nbefore they subscribe to them. Customers shall  also be informed clearly and \nprecisely on their rights, obligations and responsibilities on matters relating to digital payment s, and, any  problems that may arise from its service unavailability, \nprocessing errors and security breaches.  The terms and condi tions  including \ncustomer privacy and security policy  applying to digital payment  products and \nservices shall be readily available to customers within the product. All digital channels are to be offered on express willingness of customer s and shall not be \nbundled without their  knowledge.  \n47.  Whenever new operating features or functions, particularly those relating to \nsecurity, integrity and authentication, are introduced to online delivery channels,  \n                                                           \n4 RBI/2020- 21/21 DPSS.CO.PD No.116/02.12.004/2020- 21 circular dated August 6, 2020  on ‘Online Dispute Resolution (ODR) \nSystem for Digital Payments’  \n 14 \n clear and effective communication followed by sufficient instructions to properly \nutilise such new features should be provided to the customers.  \n48.  REs may continuously create public awareness on the types of threats and attacks  \nused against the consumers while using digital payment  products  and \nprecautionary measures to safeguard against the same. Customers shall be \ncautioned against c ommonly known threats  in recent times like phishing, vishing, \nreverse -phishing, remote access of mobile devices and educated to secure and \nsafeguard their account details, credentials, PIN, card details, devices , etc.  \n49. REs shall provide digital payment products and services , to a customer only at her/ \nhis option based on specific written or authenticated electronic requisition along with \na positive ac knowledgement  of the terms and conditions .   \n50. REs should provide a mechanism on their mobile and internet banking application \nfor their customers to , with necessary authentication,  identify/  mark a transaction \nas fraudulent for seamless and immediate notification to his RE. On such \nnotification by the customer, th e RE s may endeavour to build the capability for \nseamless/ instant reporting of fraudulent  transactions to the corresponding \nbenefici ary/ counterparty’s RE ; vice-versa have mechanism to receive such \nfraudulent transactions  reported  from other REs . The objective of this mechanism  \nis to accelerate early detection and enable the banking / payment  system to trace \nthe transaction trail and mitigate the loss to the defrauded customer at the earliest \npossible time.   \n \n \n \n \n       15 \n  \nChapter III  \nINTERNET BANKING SECURITY CONTROLS  \nIn addition to the controls prescribed in Chapter II, the following instructions are \napplicable to REs offering/ intending to offer internet banking facility to their customers:  \n51. Internet banking websites are vulnerable to authentication related brute force \nattacks/ applicat ion layer Denial of Service (DoS) attacks. Based on the RE’s \nindividual risk/ vulnerability assessment on authentication- related attacks such as \nbrute force/ DoS attacks, REs shall implement additional levels of authentication to \ninternet banking website s uch as adaptive authentication, strong CAPTCHA \n(preferably with anti -bot features) with server -side validation, etc., in order to plug \nthis vulnerability and prevent its exploitation.  Appropriate measures shall be taken \nto prevent DNS cache poisoning attacks  and for secure handling of cookies . Virtual \nkeyboard option should be made available.  \n52. An online session shall be automatically terminated after a fixed period of inactivity.  \n53. Secure delivery of password for login purpose shall be ensured. The password \ngenerated and dispatched by the RE should be valid for a limited period from the date of its creation.  If the password is generated and dispatched by the RE, then , \nthe user shall be compulsorily required to change the password,  on the first login.    \n54. When the internet banking application is accessed through external websites ( eg: \nin case of payment of taxes,  e-commerce transactions , etc.), the procedure f or \nauthentication and the appearance/ look and feel  of the RE’s internet banki ng site \nshould be made uniform as far as possible.  \n \n \n \n \n \n \n \n 16 \n Chapter IV  \nMOBILE PAYMENTS APPLICATION SECURITY CONTROLS   \nIn addition to the controls prescribed in Chapter II, the following instructions are \napplicable to the REs offering/ intending to offer mobile banking / mobile payments  \nfacility to their customers  through mobile application:  \n55. On detection of any anomalies or exceptions for which the mobile application was \nnot programmed, the customer shall  be directed to remove the current copy/ \ninstance of the application and proceed with installation of a new copy/ instance of \nthe application.  REs shall be able to verify the version of the mobile application \nbefore the transactions are enabled.   \n56. Specific Controls for mobile  applications include:  \na) Device policy enforcement (allowing app install ation / execution after baseline \nrequirements are met);  \nb) Application secure download/ install;  \nc) Deactivating older application versions in a phased but time bound manner (not \nexceeding six months from the date of release of newer version) i.e., \nmaintaining only one version (excluding the overlap period while phasing out \nolder version) of the mobile application on a platform/ operating system;  \nd) Storage of customer data;  \ne) Device or application encryption;  \nf) Ensuring minimal data collection/ app permissions;  \ng) Application sandbox/  containerisation;   \nh) Ability to identify remote access applications (to the extent possible) and prohibit login access to the mobile application, as a matter of precaution; and   \ni) Code obfuscation.  \n \n57. REs may consider to perform validation on the security and compatibility condition \nof the device/ operating system and the mobile application  to ensure that activities \nrelating to the account  are put through the mobile application in a safe and secure \nmanner.   \n58. REs may explore the feasibility of implementing a code that checks if the device is \nrooted/ jailbroken prior to the installation of the mobile application and disallow the \nmobile application to install/  function if the phone is rooted/ jailbroken.  \n59. Checksum of current  active  version of application  shall be hosted on public platform \nso that users can verify the same.  \n ""]"
69,What is the provision for the management of the Subscriber Education and Protection Fund under this Act?,"The Authority shall administer and utilise the Subscriber Education and Protection Fund in accordance with the regulations, and the regulations may specify the manner of administering and utilising the Fund, including the delegation of powers and functions to committees.",,"['Pension Fund Regulatory and Development Authority  Act, 2013   25 \nbusiness of the company, as well as the company, shall be deemed to be guilty of \nthe offence and shall be liable to be proceeded against and punished acc ordingly:  \nProvided that nothing contained in this sub -section shall render any such person \nliable to any punishment provided in this Act if he proves that the offence was \ncommitted without his knowledge or that he has exercised all due diligence to \npreven t the commission of such offence.  \n(2) Notwithstanding anything contained in sub -section (1), where any offence \nunder this Act has been committed by a company and it is proved that the offence \nhas been committed with the consent or connivance of, or is att ributable to, any \nneglect on the part of any director, manager, secretary or other officer of the \ncompany, such director, manager, secretary or other officer shall also be deemed \nto be guilty of the offence and shall be liable to be proceeded against and p unished \naccordingly.  \nExplanation. —For the purposes of this section, —  \n(a) “company ” means any body corporate and includes a firm or other association \nof individuals; and  \n(b) “director ”, in relation to a firm, means a partner in the firm.  \n1[50A. Powers of  Authority not to apply to International Financial Services \nCentre .— Notwithstanding anything contained in any other law for the time being \nin force, the powers exercisable by the Authority under this Act, —  \n(a) shall not extend to an International Financi al Services Centre set up under \nsub-section (1) of section 18 of the Special Economic Zones Act, 2005 (28 \nof 2005);  \n(b) shall be exercisable by the International Financial Services Centres \nAuthority established under sub -section (1) of section 4 of the In ternational \nFinancial Services Centres Authority Act, 2019,   \nin so far as regulation of financial products, financial services and financial \ninstitutions that are permitted in the International Financial Services Centres are \nconcerned.]  \n51. Power to make  rules .—(1) The Central Government may, by notification, \nmake rules for carrying out the provisions of this Act.  \n(2) In particular and without prejudice to the generality of the foregoing power, \nsuch rules may provide for all or any of the following matte rs, namely: —  \n(a) the salary and allowances payable to and the other conditions of service \nof the Chairperson and whole -time members under sub -section (3) of \nsection 5;  \n(b) the allowances payable to part -time members under sub -section (4) of \nsection 5;  \n(c) the additional functions which may be performed by the Authority \nunder clause (p) of sub -section (2) of section 14;  \n                                                      \n1  Inserted by the International Financial Services Centres Authority Act, 2019 (50 of 2019), s. 33 and the \nSecond Schedu le Part XIV (w.e.f. 1 -10-2020).  26  Pension Fund Regulatory and Development Authority  Act, 2013  \n(d) any other matter in respect of which the Authority may exercise the \npowers of a civil court under clause (v) of sub -section (3) of s ection 14;  \n(e) the procedure to be followed by the authorised officer under sub -\nsection (10) of section 17;  \n(f) the form and manner in which an appeal may be filed before the \nSecurities Appellate Tribunal and the fee which shall accompany such \nappeal, un der sub -section (2) of section 36;  \n(g) the procedure to be followed by the Securities Appellate Tribunal in \ndealing with an appeal, under sub -section  (6) of section 36;  \n(h) the form in which annual statement of accounts shall be maintained by \nthe Authorit y under sub -section (1) of section 42;  \n(i) the time within which and the form and manner in which returns and \nreports are to be made by the Authority to the Central Government under \nsub-section (1) of section 46;  \n(j) any other matter which is to be, or m ay be, prescribed, or in respect of \nwhich provision is to be made, by rules.  \n52. Power to make regulations .—(1) The Authority may, by notification, make \nregulations consistent with this Act and the rules made thereunder for carrying out \nthe provisions of t his Act.  \n(2) In particular, and without prejudice to the generality of the foregoing power, \nsuch regulations may provide for all or any of the following matters, namely: —  \n(a) the time and places of meetings of the Authority and the procedure to \nbe follow ed at such meetings (including the quorum at such meetings) \nunder sub -section (1) of section 9;  \n(b) the terms and other conditions of service of the officers and other \nemployees of the Authority under sub -section (2) of section 11;  \n(c) the regulations to  be made by the Authority in respect of pension \nschemes referred to in clause (b) of sub -section (1) of section 12 and the \ntime within which such schemes should conform to the regulations, made \nunder sub -section (2) of that section;  \n(d) the establishing o f mechanisms for redressing grievances of \nsubscribers under clause (f) of sub -section (2) of section 14;  \n(e) the form and manner in which books of account shall be maintained \nand statement of accounts shall be rendered by intermediaries under clause \n(n) o f sub -section (2) of section 14;  \n(f) amendment to the National Pension System referred to in sub -section \n(1) of section 20;  \n(g) the conditions of its purpose, frequency and limits for withdrawals \nfrom individual pension account referred to in clause (b) of sub -section (2) \nof section 20;  \n(h) the conditions subject to which the subscriber shall exit from the Pension Fund Regulatory and Development Authority  Act, 2013   27 \nNational Pension System referred to in clause (h) of sub -section (2) of \nsection 20;  \n(i) the conditions subject to which the subscriber shall purchase  an annuity \nreferred to in clause (i) of sub -section (2) of section 20;  \n(j) the duties and functions of central recordkeeping agency under sub -\nsection (2) of section 21;  \n(k) the determination of compensation of fair value of the regulated assets \npayable to central recordkeeping agency under proviso to sub -section (3) \nof section 21;  \n(l) the manner of receiving contributions and instructions and transmitting \nthem to the Trustee Bank or central recordkeeping agency, as the case may \nbe, and paying out the be nefits to the subscribers, under sub -section (1), \nand the regulations governing functioning of points of presence under sub -\nsection (2) of section 22;  \n(m) the manner in which a pension fund may receive contributions, \naccumulate them and make payments to t he subscriber under sub -section \n(1), the number of pension funds under sub -section (2), the functioning of \nthe pension fund under sub -section(3), and the manner of managing the \nschemes by the pension fund under sub -section (4) of section 23;  \n(n) the form and manner in which an application for grant of certificate of \nregistration shall be made and the fee which shall accompany such \napplication under sub -section (2) of section 27;  \n(o) the conditions subject to which a certificate of registration may be \ngranted to an intermediary under sub -section (3) of section 27;  \n(p) the procedure and manner of suspension or cancellation of certificate \nof registration of intermediaries under sub -section (4) of section 27;  \n(q) the procedure for holding inquiry by an adjudi cating officer under sub -\nsection (1) of section 30; \n(r) the supersession of the governing board or board of directors of the \nintermediary under sub -section (2) of section 31;  \n(s) the management of affairs of the intermediary by an Administrator \nunder sub -section (3) of section 31;  \n(t) the manner of administering and utilising the Subscriber Education and \nProtection Fund under sub -section (3) of section 41;  \n(u) the delegation of powers and functions of the Authority to committees \nunder sub -section (2) of section 49;  \n(v) establishment, duties and functioning of the National Pension System \nTrust;  \n(w) any other matter which is required to be or may be specified by \nregulations or in respect of which provision is to be or may be made by \nregulations.  ']"
70,"What is the definition of investment guidelines under the PFRDA (Aggregator) Regulations, 2015?",Investment guidelines mean guidelines and circulars issued by the Authority from time to time having regard to applicable investment pattern and limits thereof.,,"['PFRDA  (Salary and Allowances etc . of Chairperson and WTMs ) Rules, 2014  111 \nsubscribe to an oath of office and an oath of secrecy.  \n(2)  The oat h of office and the oath of secrecy shall be administered in the Form I \nand Form II annexed to these rules.  \n17.  Residuary provisions .—Matters relating to the terms and conditions of \nservice of the Chairperson and the whole - time members with respect to wh ich no \nexpress provision has been made in these rules, shall be referred by the Authority \nto the Central Government for its decision, and the decision of the Central \nGovernment thereon shall be applicable to the Chairperson and the whole -time \nmembers.  \n18.  Power to relax.  —The Central Government shall have power to relax the \nprovisions of any of these rules with respect to any class or category of persons.  \n \nFORM  I \n(See rule 16) \nForm  of oath of office  for the Chairperson/whole -time member  of the Pension  \nFund  Regulatory  and Development  Authority.  \n“I,----------------------- , having been appointed as Chairperson/whole -time member \nof the Pension Fund Regulatory and  Development  Authority  do solemnly  \naffirm/swear  in the name  of God that I will faithfully  and consci entiously  \ndischarge  my duties as Chairperson/member to the best of my ability, knowledge \nand judgement, without fear or favour, affection or  ill-will.” \nDated:  \n(Name  of the Chairperson/whole -time member)  \nFORM  – II \n(See rule 16) \nForm  of oath of secrecy  for the Chairperson/whole -time member  of the Pension  \nFund  Regulatory  and Development  Authority.  \n“I, --------------- , having  been  appointed  as the  Chairperson/whole -time member  \nof the Pension  Fund  Regulatory  and Development Authority do solemnly \naffirm/swear in the name of God that I will not directly or indirectly communicate \nor reveal to any person or persons any matter which shall be brought under my \nconsideration or shall become known to me as  Chairperson/whole -time member \nof the said Authority except as may be required for the due discharge of my duties \nas Chairperson/whole -time member. ” \nDated:                                           (Name  of the Chairperson/whole -time member)  \n(Name  of officer)   \nDesignation  of officer   \n[File No………………….. ] \n______ \n   \n \n \n \n \n \n \n \n \nREGULATIONS  \n \n \n  \n  \n \nPENSION FUND REGULATORY AND DEVELOPMENT \nAUTHORITY (AGGREGATOR) REGULATIONS 2015  \n[NOTIFICATION New Delhi, the 10th March, 2015]  \n[Repealed on 25th June, 2018 vide Pension  Fund  Regulatory  \nand Development  Authority  (Point of  Presence)  \nRegulati ons, 2018] \n No. PFRDA/12/RGL/139/4 .─In exercise of the powers conferred by sub -\nsection (1)  of section 52 read with clauses (e), (n), (o), (p) and (w) of sub -section \n(2) thereof of the Pension Fund Regulatory and Development Authority Act, 2013 \n(23 of 2013), the Pension Fund Regulatory and Development Authority hereby \nmakes the following regulations, namely: ─  \nCHAPTER I  \nPRELIMINARY  \n1.    Short title, commencement and application. - (1) These regulations may be \ncalled the Pension Fund Regulatory and Development Authority (aggregator) \nRegulati ons, 2015.  \n1[The Regulation aims to provide regulatory framework for registration of existing \nAggregators and monitor implementation of National Pension System for the best \ninterest of the target subscribers.]  \n(2) They shall come into force on the date of their publication in the Official \nGazette.  \n(3) These regulations shall be applicable to the –NPS-Lite under National Pension \nSystem, (also referred to as NPS -Swavalamban), which is a low -cost, feature \noptimized group model, aimed at unorganised and econ omically disadvantaged \nsections of the society. These regulations shall also be applicable for \nimplementation of Government of India “Swavalamban  Scheme ” through National \nPension System.  \n2.    Definitions .- (1) In these regulations, unless the context othe rwise requires, —  \n(a)  “Act” means the Pension Fund Regulatory and Development Authority Act, \n2013 (23 of 2013);  \n(b)  “ aggregator ” means an intermediary registered by the Authority under sub -\n                                                      \n1 Substituted by the Pension Fund Regulatory and  Development Authority (Aggregator) ( First \nAmendment ) Regulations, 2016 w.e.f. 30.09.2016. Prior to substitution, it read as under:  \n“The Regulation aims to provide regulatory fra mework for registration of Aggregators and monitor \nimplementation of National Pension System for the best interest of the target subscribers.”  116   PFRDA  (Aggregator ) Regulations, 2015  \nsection (3) of section 27 of the Act, to perform subscriber int erface functions under \nthe National Pension System - Swavalamban, which shall have functional \nrelationship with a known customer base for delivery of some socio -economic \ngoods or services;  \n(c)  “auditor ” means a person who is qualified to audit the account s of a company \nunder section 224 of the Companies Act, 1956 (1 of 1956);  \n(d)  “citizen of India ” means any person qualified to be a citizen of India under the \nCitizenship Act, 1955 (57 of 1955);  \n(e)  “company ” means any entity formed and registered under  the Companies Act, \n1956 (1 of 1956)  \n(f)  “compliance officer ” means a person of responsibility from an aggregator: \ndesignated as such and charged with the responsibility of monitoring compliance \nby it of the provisions of the Act or the rules or the regu lations made or \nnotifications, guidelines, circulars or instructions issued by the Authority, \nincluding monitoring of redressal of subscriber grievances;  \n(g)  “investment guidelines ” mean guidelines and circulars issued by the Authority \nfrom time to time having regard to applicable investment pattern and limits thereof;  \n(h)   “National Pension System -Lite” means the scheme under National Pension \nSystem providing a feature of optimized group model of National Pension System \nfor persons belonging to unorgan ized sector of which National Pension System -\nSwavalamban is a component where Government of India co -contribution is \nadmissible.  \n(i)   “principal officer ” means any person who is responsible for the activities of \nthe aggregator and includes —  \n(i) any partn er in case of a partnership concern;  \n(ii) whole -time director, executive director or managing director, in the case \nof a body corporate;  \n(iii) any key employee; and  \n(iv) any person designated as a principal officer by the aggregator;  \n(j) “Schedule ” means schedule annexed to these regulations.  \n(2) Words and expressions used and not defined in these regulations but defined in \nthe Act, shall have the meanings respectively assigned to them in the Act.  \n  PFRDA  (Aggregator ) Regulatio ns, 2015  117 \nCHAPTER II  \nREGISTRATION OF AGGREGATOR  \n3.  Eligibility  criteria for grant of certificate of registration as aggregator .- (1) Subject \nto the fulfillment of conditions specified under these regulations for  Grant  of \ncertificate of registration, the following entities shall be eligible to be enlisted as \nan aggreg ator under the National Pension System: -  \n(a) Nodal offices or entities managing the pension schemes for identified \nbeneficiary groups under the Central and State Governments;  \n(b) scheduled banks, Regional Rural Banks and other Financial Institutions;  \n(c) India Post;  \n(d) Insurance companies;  \n(e) Micro -Finance Institutions  (MFIs);  \n(f) Non Banking Finance Companies (NBFCs);  \n(g) Non Government Organizations  (NGOs);  \n(h) Entities running common service centers under the National E -Governance \nplan;  \n(i) Ho using Finance Institutions;  \n(j) Any other category as may be specified by the Authority from time to time.  \n(2) Apart from the Central and State Government entities mentioned at clauses (a) \nand (c) of sub -regulation (1) the entities desirous of taking on t he role of an \naggregator shall be required to be registered under a Central or State enactment, \nnamely: -  \n(a) Societies Registration Act, 1860  (21 of 1860) (including with States \namendments of this Act);  \n(b) Indian  Trusts  Act,1882 (2 of 1882);  \n(c) Charit able and Religious  Trusts  Act, 1920 (14 of 1920);  \n(d) Companies Act,1956 (1  of 1956) (Section  25, for registration of charitable or \nother company);  \n(e) Companies Act, 1956 (1 of 1956)  [with necessary certification from the \nReserve Bank of India [for Non Banking Finance Companies (NBFCs), Micro -\nFinance Institutions (MFIs)];  \n(f) Companies Act, 1956 (1 of 1956) or Companies Act, 2013 for any other \nCompany;  \n(g) Banking Regulation Act, 1949 (10 of 1949);  \n(h) entities created by State or Central Government f or any specified group of \nbeneficiaries;  ']"
71,What is the power of the Central Government to grant immunity to a person who has made a full and true disclosure in respect of alleged violation of the provisions of the Act or the rules or the regulations made thereunder?,"The Central Government may, on the recommendation by the Authority, grant to such person, subject to such conditions as it may think fit to impose, immunity from prosecution for any offence under this Act, or the rules or the regulations made thereunder and also from the imposition of any penalty under this Act with respect to the alleged violation.",,"['Pension Fund Regulatory and Development Authority  Act, 2013   19 \n(c) interim injunction or appointment of an administrator; and  \n(d) such other interim measures as may appear to the Authority to be just \nand necessary,  \nand the Authority shall have power to make such orders including an order for \nattachm ent of assets of the pension fund as it deems fit in this regard.  \n(2) Where, on a complaint received by the Authority or suo motu , the Authority, \nafter conducting an inquiry, comes to a conclusion that the governing board or \nboard of directors, by whateve r name called, or the persons in control of any \nintermediary to the extent regulated under this Act are indulging in any activity \nwhich is in contravention of the provisions of this Act or regulations, it may \nsupersede the governing board or board of direc tors or management of the \nintermediary in accordance with the provisions of the regulations.  \n(3) In case the governing board or board of directors or management of an \nintermediary is superseded under sub -section (2), the Authority may appoint an \nAdministr ator to manage the affairs of the intermediary in accordance with the \nprovisions contained in the regulations.  \n32. Offences .—(1) Without prejudice to any award of penalty by the member \nunder this Act, if any person contravenes or attempts to contravene or abets the \ncontravention of the provisions of this Act or of any rules or regulations made \nthereunder, he shall be punishable with imprisonment for a term which may extend \nto ten years, or with fine, which may extend to twenty -five crore rupees or with \nboth.  \n(2) If any person fails to pay the penalty imposed by the member or fails to comply \nwith any of the directions or orders issued by the member, he shall be punishable \nwith imprisonment for a term which shall not be less than one month but which \nmay exten d to ten years, or with fine, which may extend to twenty -five crore \nrupees, or with both.  \n33. Power to grant immunity .—(1) The Central Government may, on the \nrecommendation by the Authority, if satisfied, that any person, who is alleged to \nhave violated an y of the provisions of this Act or the rules or the regulations made \nthereunder, has made a full and true disclosure in respect of alleged violation, grant \nto such person, subject to such conditions as it may think fit to impose, immunity \nfrom prosecution for any offence under this Act, or the rules or the regulations \nmade thereunder and also from the imposition of any penalty under this Act with \nrespect to the alleged violation:  \nProvided that no such immunity shall be granted by the Central Government in \ncases where the proceedings for the prosecution for any such offence have been \ninstituted before the date of receipt of application for grant of such immunity:  \nProvided further that the recommendation of the Authority under this sub -section \nshall not be b inding upon the Central Government.  \n(2) An immunity granted to a person under sub -section (1) may, at any time, be \nwithdrawn by the Central Government, if it is satisfied that such person had, in the \ncourse of the proceedings, not complied with the condit ion on which the immunity 20  Pension Fund Regulatory and Development Authority  Act, 2013  \nwas granted or had given false evidence, and thereupon such person may be tried \nfor the offence with respect to which the immunity was granted or for any other \noffence of which he appears to have been guilty in connection with the  \ncontravention and shall also become liable to the imposition of any penalty under \nthis Act to which such person would have been liable, had no such immunity been \ngranted.  \n34. Exemption from tax on wealth, income, profits and gains .—\nNotwithstanding anythi ng contained in –  \n(i) the Wealth -tax Act, 1957 (27 of 1957);  \n(ii) the Income -tax Act, 1961(43 of 1961); or  \n(iii) any other enactment for the time being in force relating to tax on \nwealth, income, profits or gains,  \nthe Authority shall not be liable to pa y wealth -tax, income -tax or any other tax in \nrespect of its wealth, income, profits or gains derived.  \n35. Cognizance of offences by court .—(1) No court shall take cognizance of any \noffence punishable under this Act or any rules or regulations made thereun der, \nsave on a complaint made by the Authority.  \n(2) No court inferior to that of a Court of Session shall try any offence punishable \nunder this Act.  \n36. Appeal to Securities Appellate Tribunal .—(1) Any person aggrieved by an \norder made by the Authority o r by an adjudicating officer under this Act may prefer \nan appeal before the Securities Appellate Tribunal which shall have jurisdiction \nover the matter.  \n(2) Every appeal under sub -section (1) shall be filed within a period of forty -five \ndays from the date  of receipt of the order appealed against and it shall be in such \nform and manner and shall be accompanied by such fee as may be prescribed: \nProvided that the Securities Appellate Tribunal may entertain an appeal after the \nexpiry of the said period, if it is satisfied that there was sufficient cause for not \npreferring the appeal within that period.  \n(3) On receipt of an appeal under sub -section (1), the Securities Appellate Tribunal \nmay, after giving the parties to the appeal, an opportunity of being heard,  pass such \norders thereon as it thinks fit, confirming, modifying or setting aside the order \nappealed against.  \n(4) The Securities Appellate Tribunal shall send a copy of every order made by it \nto the Authority, the parties to the appeal and to the adjudica ting officers \nconcerned.  \n(5) The appeal filed before the Securities Appellate Tribunal under sub -section (1) \nshall be dealt with by it as expeditiously as possible and endeavour shall be made \nby it to dispose of the appeal finally within six months from t he date on which the \nappeal is presented to it.  \n(6) Without prejudice to the provisions of sections 15T and 15U of the Securities \nand Exchange Board of India Act, 1992 (15 of 1992), the Securities Appellate Pension Fund Regulatory and Development Authority  Act, 2013   21 \nTribunal shall deal with an appeal under this se ction in accordance with such \nprocedure as may be prescribed.  \n37. Civil Court not to have jurisdiction .—No civil court shall have jurisdiction \nto entertain any suit or proceeding in respect of any matter which an adjudicating \nofficer appointed under this A ct or a Securities Appellate Tribunal is empowered \nby or under this Act to determine and no injunction shall be granted by any court \nor other authority in respect of any action taken or to be taken in pursuance of any \npower conferred by or under this Act.  \n38. Appeal to Supreme Court .— Any person aggrieved by any decision or order \nof the Securities Appellate Tribunal under this Act may file an appeal to the \nSupreme Court within sixty days from the date of communication of the decision \nor order of the Securi ties Appellate Tribunal to him on any question of law arising \nout of such order:  \nProvided that the Supreme Court may, if it is satisfied that the appellant was \nprevented by sufficient cause from filing the appeal within the said period, allow \nit to be fil ed within a further period not exceeding sixty days.  \nCHAPTER IX  \nFINANCE, ACCOUNT AND ADUIT  \n39. Grants by Central Government .—The Central Government may, after due \nappropriation made by Parliament by law in this behalf, make to the Authority \ngrants of such  sums of money as that Government may think fit for being utilised \nfor the purposes of this Act.  \n40. Constitution of Pension Regulatory and Development Fund .—(1) There \nshall be constituted a fund to be called the Pension Regulatory and Development \nFund an d there shall be credited thereto —  \n(a) all Government grants, fees and charges received by the Authority;  \n(b) all sums received by the Authority from such other source as may be \ndecided upon by the Central Government.  \n(2) The Fund shall be applied for m eeting —  \n(a) the salaries, allowances and other remuneration of the Chairperson and \nother members and officers and other employees of the Authority;  \n(b) other expenses of the Authority in connection with the discharge of its \nfunctions and for the purposes  of this Act.  \n41. Constitution of Subscriber Education and Protection Fund .—(1) The \nAuthority shall establish a fund to be called the Subscriber Education and \nProtection Fund.  \n(2) There shall be credited to the Subscriber Education and Protection Fund th e \nfollowing amounts, namely: —  \n(a) grants and donations given to the Subscriber Education and Protection \nFund by the Central Government, State Governments, companies or any ']"
72,"Who is a 'Swavalamban subscriber' under the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) Regulations, 2015?",A Swavalamban subscriber means a subscriber who is registered as such with the central recordkeeping agency under the National Pension System and where Government of India co-contribution is admissible.,,"['PFRDA  (Employees’ Service) Regulations, 2015   287 \n FORM –A \nDECLARATION OF FIDELITY AND SE CRECY  \nI____________________________ do hereby declare that I will faithfully, truly \nand to the best of my skill and ability execute and perform the duties required of \nme as an employee of the PENSION FUND REGULATORY AND \nDEVEOPMENT AUTHORITY and which prope rly relate to the office or position \nheld by me in or in relation to the said Authority.  \nI further declare that I will not communicate or allow to be communicated to any \nperson not legally entitled thereto any information relating to the affairs of the \nAuthority or relating to the affairs of any person having any dealing with the \nAuthority, nor will I allow any such person to inspect or have access to any books \nor documents belonging to or in the possession of the Authority and relating to the \nbusiness of the Authority or the business of any person having any dealing with \nthe Authority.  \n (Signature)  \nPlace:  _______________  \nDate:  _______________  \nName in full _________________  \nNature of appointment   ________________  \nSigned before me  \n \nFORM -B \nDECLARATIO N OF DOMICILE  \nI, the undersigned, having been appointed to the service of the Pension Fund \nRegulatory and Development Authority, hereby declare ___________ (place) in \n______________ (district) as my place of domicile.  \nOR \nThe above is not my place of birth . My place of birth is _______________ (place) \nin ____________ (district) but ____________(place) has been declared as my \nplace of domicile for the reasons given below:  \n__________________________________________________  \n___________________________________ _______________  \n \nName in full     __________________________  \nNature of appointment    __________________________  \nDate of appointment    __________________________  \nSignature     __________________________  \nPlace      __________________________  \nDate      __________________________   288   PFRDA  (Emplo yees’ Service) Regulations, 2015  \nFORM - C \nDECLARATION TO BE BOUND BY THE EMPLOYEES ’ SERVICE  \nREGULATIONS  \n \n \nI hereby declare that I have read and understood the Pension Fund Regulatory and \nDevelopment Authority (Employees ’ Service) Regulations, 2015 and I hereby \nsubscribe to and agree to be bound by the said Regulations, as may be in force \nfrom time to time.  \n \nName in full     _________________________  \nNature of appointment            _________________________  \nDate of appointment    _________________________  \nSignature     _________________________  \nWitness      _________________________  \nPlace      _________________________  \nDate      _________________________  \n \n____  \n  \n  \n \nPENSION FUND REGULATORY AND DEVELOPMENT \nAUTHORITY (EXITS AND WITHDRAWALS UNDER \nTHE NATIONAL PENSION SYSTEM)  \nREGULATIONS, 2015  \n[NOTIFICATION  New Delhi Dated  the 11 th May, 2015]  \n No. PFRDA/12/RGL/139/8 ─ In exercise of the powers conferred by sub -\nsection  (1) of section 52 read with clauses (g), (h), and (i) of sub -section (2) thereof \nof the Pension Fund Regulatory and Development Authority Act, 2013 (23 of \n2013), the Pension Fund Regulatory and Developme nt Authority hereby makes the \nfollowing regulations, namely: -  \nCHAPTER I  \nPRELIMINARY  \n1. Short title and commencement .- (1) These regulations may be called the \nPension Fund Regulatory and Development Authority (Exits and Withdrawals \nunder the National Pension System) Regulations, 2015 . \n“The regulations aim at providing an effective mechanism in the interest of \nsubscribers, upon exit or withdrawal from the National Pension System, including \nthe conditions, purpose, frequency and limits for withdrawals from indiv idual \npension account, as also the conditions, subject to which  a subscriber shall exit \nfrom the National Pension System and purchase  an annuity thereupon .” \n(2) They shall come into force on the date of their publication in the Official \nGazette.  \n2. Definition s.- (1) In these regulations, unless the context otherwise requires, - \n(a) “Act” means the Pension Fund Regulatory and Development Authority Act, \n2013 (23 of 2013);  \n \n(b) “accumulated pension wealth ” means the monetary value of the pension \ninvestments accumulated in  the Permanent Retirement Account of a subscriber \nunder the National Pension System;  \n \n(c) “aggregator ” means an intermediary registered with the Authority under sub -\nsection (3) of section 27 of the Act, to perform subscriber interface functions under \nthe Natio nal Pension System -Swavalamban and have the functional relationship \nwith a known customer base for delivery of some socio -economic goods or \nservices;  \n 290   PFRDA  (Exits and Withdrawals under the N PS) Regulations, 20 15 \n(d) “annuity service provider ” means a life insurance company registered and \nregulated by the Insurance Regul atory and Development Authority and empaneled \nby the Authority for providing annuity services to the subscribers of the National \nPension System;  \n \n1 [(da) “CCS NPS Rules 2021” shall mean Central Civil Services (Implementation \nof National Pension System) Rul es, 2021 notified vide no. G.S.R. 227(E) dated \n30.03.2021 and amendments thereto by Department of Pension and Pensioners‟ \nWelfare, Ministry of Personnel, Public Grievances and Pensions, Government of \nIndia. ] \n \n(e) “citizen of India ” means a person qualified to be a citizen of India under the \nCitizenship Act, 1955 (57 of 1955);  \n \n(f) “compliance officer ” means a person of responsibility from the National \nPension System Trust  or any other intermediary or entity entrusted with the \nresponsibility of receiving, processing  and settlement of withdrawal claims from \nthe subscribers under the National Pension System and responsible for monitoring \ncompliance, of the provisions of the Act  or the rules or the regulations made or \nnotifications, guidelines or instructions issued by the Authority from time to time;  \n \n(g) “government sector subscriber ” means a subscriber enrolled in the National \nPension System  through the nodal offices of the Central Government or the State \nGovernments  [including autonomous bodies under Central or State Gov ernment]2 \nand registered as such with the central recordkeeping agency;  \n \n \n(h) “National Pension System -Lite” means a feature of optimized group model of \nNational Pension System for persons belonging to unorganized sector of which the \nNational Pension System -Swavalamban is a component where Government of \nIndia co -contribution is admissible;  \n \n(i) “Permanent Retirement  Account Number (PRAN) ” means a unique \nidentification number allotted to each subscriber by the central recordkeeping \nagency;  \n \n(j) “Swavalamban subscriber ” means a subscriber who is registered as such with \nthe central recordkeeping agency under the National Pension System and where \nGovernment of India co -contribution is admissible;  \n3[(k) “Exit” for the purpose of this regulation shall mean closure of individu al \npension account of the subscriber under National Pension System, upon and on the \ndate of happening of any of the following events, as may be applicable:  \n                                                      \n1Inserted by PFRDA (Exits and Withdrawals under the National Pension System) ( Second Amendment ) \nRegulations, 2021 w.e.f . 28.12.2021.   \n2Inserted by PFRDA (Exits and Withdrawals under the National Pension System) ( Second Amendment ) \nRegulations, 2021 w.e.f. 28.12.2021.  \n3Inserted by PFRDA (Exits and Withdrawals under the National Pension System) ( First Amendment ) \nRegulations, 2017 w.e.f. 10.08.2017.  PFRDA  (Exits and Withdrawals under the N PS) Regulations, 20 15 291 \n (i) a subscriber having superannuated/retired from employment, as per the terms \nof such employment;  \n(ii)  4[5[a subscriber having attained the age of sixty years, and where so \nspecifically permitted has not exercised a choice in writing to continue to remain \nsubscribed to such system, till such further period as is permissible, with or \nwithout making contribution s or in respect of a subscriber who has joined \nNational Pension System after attaining the age of sixty years (but before \nattaining seventy years of age) upon attaining the maximum age permitted to be \nsubscribed to such scheme or any date prior thereto, ba sed on the specific request \nfor closure received from subscriber;]]  \n(iii)  6[7[death of the subscriber  [or the subscriber being missing and presumed \ndead as per Indian Evidence Act 1872 and amendments thereto]8, before \nattaining the age of superannuation, or the  age of sixty years, or in cases where \nan option has been exercised by subscriber to continue to remain subscribed to \na certain permissible time period, death before expiry of such period or death of \na subscriber who has joined National Pension System afte r attaining the age of \nsixty years (but before attaining seventy years of age) at any time prior to \nattaining the maximum age permitted to be subscribed to such scheme;]]  \n(iv) voluntary closure of the account by the subscriber, in cases where so \npermitted and o n the date on which such closure is effected in the system;  \n                                                      \n4Substituted by the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under \nthe National Pension System) ( Amendment ) Regulations, 2021 w.e.f. 14.06.2021. Prior to substitution, it \nread as:  \n“a subscriber having attained the age of sixty years, and where so specifically permitted has not exercised a \nchoice in w riting to continue to remain subscribed to such system, till such further period as is permissible, with \nor without making contributions or in respect of a subscriber who has joined National Pension System after \nattaining the age of sixty years (but before  attaining sixty five years of age) upon attaining the maximum age \npermitted to be subscribed to such scheme or any date prior thereto, based on the specific request for closure \nreceived from subscriber;”  \n5Substituted by PFRDA (Exits and Withdrawals under the National Pension System) ( Second Amendment ) \nRegulations, 2017 w.e.f 06.10.2017. Prior to the substitution, it read as  \n“a subscriber having attained the age of sixty years, an d where so specifically permitted has not exercised a \nchoice in writing to continue to remain subscribed to such system, till such further period as is permissible, with \nor without making contributions;”  \n6 Substituted by the Pension Fund Regulatory and Dev elopment Authority (Exits and Withdrawals under \nthe National Pension System) ( Amendment ) Regulations, 2021 w.e.f. 14.06.2021. Prior to substitution, it \nread as:  \n“death of the sub scriber before attaining the age of superannuation, or the age of sixty years, or in cases where \nan option has been exercised by subscriber to continue to remain subscribed to a certain permissible time period, \ndeath before expiry of such period or death o f a subscriber who has joined National Pension System after \nattaining the age of sixty years (but before attaining sixty five years of age) at any time prior to attaining the \nmaximum age permitted to be subscribed to such scheme;”  \n7 Substituted by PFRDA (E xits and Withdrawals under the National Pension System) ( Second \nAmendment ) Regulations, 2017 w.e.f 06.10.2017. Prior to the substitution, it read as  \n“death of the subscriber befo re attaining the age of superannuation, or the age of sixty years, or in cases where \nan option has been exercised by subscriber to continue to remain subscribed to a certain permissible time period, \ndeath before expiry of such period”  \n8 Inserted by PFRDA ( Exits and Withdrawals under the National Pension System) ( Second Amendment ) \nRegulations, 2021 w.e.f. 28.12.2021.  ']"
73,What is the responsibility of the aggregator to give to the Authority or its authorized representative all assistance in connection with the inspection and audit?,It shall be the duty of the aggregator to give to the Authority or its authorized representative all assistance in connection with the inspection and audit which the Authority or its authorized representative may reasonably require.,,"['130   PFRDA  (Aggregator ) Regulations, 2015  \n(14) the aggregator shall establish adequate procedures and facilities to ensure that \nits records are protected against loss or destruction and arrangements have been \nmade for maintaining b ack up facilities;  \n(15) the aggregator shall make adequate arrangements for indemnifying the \nsubscribers for any loss that may be caused to such subscribers by the wrongful \nact, negligence or default of the employees of aggregator;  \n(16) aggregator shall follow the regulation on non -disclosure of personal \ninformation as specified in Schedule VI.  \nCHAPTER IV  \nINSPECTION AND AUDIT  \n21.  Inspection and audit. —(1) The Authority may undertake directly or through \nits authorized representative an inspection and aud it of books, accounts, records \nincluding the telephone records and electronic records and documents of the \naggregator for any purpose, including the purposes as specified under this \nregulation.  \n(2) the purposes referred to in sub -regulation ( 1) may includ e:—  \n(a) to ascertain the infrastructural capabilities, systems and procedures;  \n(b) to ensure that the books of account, records including telephone records and \nelectronic records and documents are being maintained in the manner required \nunder these regul ations;  \n(c) to ascertain whether adequate internal control systems, procedures and \nsafeguards have been established and are being followed by the aggregator;  \n(d) to ascertain whether the provisions of the Act or the regulations made or \ncirculars, guideli nes or notifications issued by the Authority are being complied \nwith;  \n(e) to inquire into the complaints received from subscribers, nodal offices, \nintermediaries or any other person on any matter having a bearing on the activities \nassigned by the Authority  to the aggregator;  \n(f) to inquire suo motu  into such matters as may be deemed fit in the interest of \nsubscribers.  \n(3) The Authority may, appoint one or more authorized representatives or, appoint \na qualified auditor to undertake the inspection or audit referred to in  \nsub-regulation ( 1).  \nExplanation. -For the purposes of this sub -regulation, the expression “qualified \nauditor ” shall have the meaning derived from section 226 of the Companies Act, \n1956 (1 of 1956).  \n22.  Notice before inspection and audit. - (1) Before undertaking an inspection or \naudit under regulation 21, the Authority or its authorized representative shall give \nten working days notice to the concerned aggregator:  PFRDA  (Aggregator ) Regulatio ns, 2015  131 \nProvided that no notice shall be required if the Authority is satisfied that  an \ninspection or audit is required for immediate safeguarding of the interest of the \nsubscribers.  \n(2) During the course of an inspection, the aggregator against which the inspection \nand audit is being carried out shall be bound to discharge its obligatio ns provided \nin these regulations.  \n23.  Obligations of aggregator on inspection and audit. - (1) It shall be the duty \nof the aggregator the affairs of which is being inspected or audited, and every \ndirector, officer and employee thereof, to produce to the A uthority or its authorized \nrepresentative or auditor, such books, accounts, records, and other documents in \nits custody or control and furnish it or him with such statements and information \nrelating to the activities entrusted to it by the Authority, as it  may require, within \nsuch reasonable period as may be specified.  \n(2) The aggregator shall allow the Authority or its authorized representative, or \nauditor to have a reasonable access to the premises occupied by it or by any other \nperson on its behalf and also extend reasonable facility for examining any books, \nrecords, documents and computer data in the possession of the aggregator or such \nother person and also provide copies of documents or other materials which in the \nopinion of the Authority or its auth orized representative or auditor are relevant for \nthe purpose of the inspection or audit.  \n(3) It shall be the duty of the aggregator to give to the Authority or its authorized \nrepresentative all assistance in connection with the inspection and audit which  the \nAuthority or its authorized representative may reasonably require.  \n24.  Submission of report. - (1) On completion of the inspection or audit, a report \nshall be submitted to the Authority, which after consideration of the report, may \ntake such action a s it may deem fit and appropriate in the interest of the subscribers.  \n(2) The Authority may suo motu , or after consideration of the inspection report, as \nthe case may be, order an investigation or inquiry to be conducted in the matter.  \n25.  Payment of in spection and audit fees. -The Authority shall be entitled to \nrecover from the aggregator such expenses incurred by it for the purposes of \ninspection or audit undertaken by it directly or through its authorized \nrepresentative.  \n26.  Inspection and audit by Na tional Pension System Trust. —(1) The National \nPension System Trust shall undertake directly or through its authorized \nrepresentative, inspection or audit or both of the aggregator, on an annual basis or \nat such other period as may be specified by the Autho rity in relation to operational \nService Level Agreements in accordance with the provisions of Pension Fund \nRegulatory and Development Authority (National Pension System Trust) \nRegulations, 2015. The aggregator shall allow the National Pension system Trust,  \nor its authorized representative to have a reasonable access to the premises \noccupied by it, books of accounts, records and provide necessary information as \nmay be required by it for the purpose of such inspection or audit, as the case may be.  132   PFRDA  (Aggregator ) Regulations, 2015  \nCHAPTER V  \nSUSPENSION OR CANCELLATION OF CERTIFICATE AND \nACTION IN CASE OF DEFAULT  \n27.  Cancellation or suspension of certificate of registration .-(1) Where any \naggregator, which has been granted a certificate of registration —  \n(a) fails to comply with any conditions subject to which a certificate of registration \nhas been granted to it;  \n(b) contravenes any of the provisions of the Act or the rules or the regulations made \nor guidelines, notifications, directions, instructions or circulars issued by the \nAuthority there under;  \n(c) indulges in unfair trade practices or conducts its business in a manner \nprejudicial to the interests of the subscribers;  \n(d) fails to furnish any information as required by the Authority relating to its area \nof operations;  \n(e) does not submit  periodical returns as required under the Act or by the Authority;  \n(f) does not co -operate in an inquiry conducted by the Authority;  \n(g) 10[fails in the periodic review of its performance in terms of subscriber \nservicing or against any other uniform criter ia applicable to all the registered \naggregator;]  \n(h) commits any acts of defaults as mentioned under section 28 of the Act, the \nAuthority may, without prejudice to any other action which may be taken under \nthe Act, regulations, directions, instructions or  circulars issued there under, by \norder take such action in the manner provided under these regulations including \nsuspension or cancellation or withdrawal of the certificate of registration of an \naggregator and such other action, as may be deemed appropria te.  \n(2) An aggregator once registered shall have to ensure that the eligibility conditions \nas mentioned in these regulations are strictly adhered to during the entire currency \nof the registration period and any extension thereto, failing which the certifi cate of \nregistration may be cancelled. A certificate evidencing compliance with the \neligibility conditions shall have to be furnished by the registered aggregator to the \nAuthority on annual basis within thirty days of closure of accounts for the financial \nyear.  \n(3) No order of cancellation, suspension or withdrawal of certificate of registration \n                                                      \n10 Substituted by the Pension F und Regulatory and Development Authority (Aggregator) ( First \nAmendment ) Regulations, 2016 w.e.f. 30.09.2016. Prior to substitution, this sub -clause read as under:  \n “(g) fails in t he periodic review of its performance in terms of number of new subscriber registrations done by \nthe aggregator in relation to the business plan submitted at the time of registration or against any other uniform \ncriteria applicable to all the registered ag gregator;”  \n ']"
74,"What is the purpose of Schedule 5 in the PFRDA (Form of Annual Statement of Accounts and Records) Rules, 2015?","Schedule 5 provides details of Unsecured Loans and Borrowings, including the current year and previous year amounts.",,"['PFRDA  (Form  of Annual  Statement  of Accounts  and Records) Rules, 2015  69 \n \nPENSION  FUND  REGULATORY  AND  DEVELOPMENT  AUTHORITY  \nSCHEDULE 1  \nATTACHED  TO AND  FORMING  PART  OF \nBALANCE  SHEET  AS AT 31ST  MARCH,  201__ \nCORPUS/CAPITAL  FUND  \n(Unit  – INDIAN  RUPEE)  \nParticulars  Current  year Prev ious year \nBalance  as at the beginning  of the year \n \nAdd : Opening  Balance  of unutilized  \ncorpus  fund \n Less : Closing  Balance  of unutilised  \ncorpus  fund \nAdd/Deduct  : Balance  of net \nincome/expenditure  transferred  \nfrom  the Income  and \nExpenditure   \nAdd : Governme nt Grant  to be \nreceived  from  Government/  \ntransferred  from  the Income  and \nExpenditure  Account  Balance  \nas at the year end    \n   \nPlace:   \nDate  :                  Chief  Accounts  Officer    \n         Member  Member                             Chairperson  \n  \n \n  70   PFRDA  (Form  of Annual  Statement  of Accounts  and Records) Rules, 2015  \nPENS ION  FUND  REGULATORY  AND  DEVELOPMENT  AUTHORITY  \nSCHEDULE 2  \nATTACHED  TO AND  FORMING  PART  OF BALANCE  SHEET  AS AT \n31ST  MARCH,  201__ \nRESERVES  AND  SURPLUS                                        \n(Unit – INDIAN  RUPEE)  \nParticulars  Current  year Previous  year \n1. Capital  Reserve  \n(a) At the beginning  of the year \n(b) Addition  during  the year \n(c) Less : Deductions  during  the year \n2. Revaluation  Reserve  \n(a) At the beginning  of the year \n(b) Addition  during  the year \n(c) Less : Deductions  during  the year  \n3. Special  Reserve  \n(a) At the beginning  of the year \n(b) Additio n during  the year \n(c) Less : Deductions  during  the year  \n(b) Addition  during  the year  \n(c) Less : Deductions  during  the year  \n4. General  Reserve  \n(a) At the beginning  of the year \n(b) Addition  during  the year  \n(c) Less : Deductions  during  the year    \nTotal    \n  \nPlace:  \nDate :   \n       Membe r        \n         \n              \nMember   \nChief  Accounts  Officer  \n \n          Chairperson  \n \n  PFRDA  (Form  of Annual  Statement  of Accounts  and Records) Rules, 2015  71 \n \nPENSION  FUND  REGULATORY  AND  DEVELOPMENT  AUTHORITY  \nSCHEDULE  3 \nATTACHED  TO AND  FORMING  PART  OF BALANCE -SHEET  AS AT \n31.03.201_  \n EARMARKED/ENDOWMENT  FUNDS                       \n(Unit  – INDIAN  RUPEE)  \n \nParticulars  \n Fund wise break   up Current  \nyear  Previous  \nyear  \nFund     XX Fund  YY \n1. Opening  balance  of the funds  \n2. Additions  to the funds  \n(a) Donations/grants  \n(b) Income  on Investments  \nmade  on account  of funds  \n(c) Other  Additions  (specify  \nnature)      \nTotal  (1+2)      \n3. Utilisation/Expenditure  towards  \nobjectives  of funds  \n(a) Capital  Expenditure  \n(i) Fixed  assets  \n(ii) Others      \nTotal      \n(b) Revenue  Expenditure  \n(i) Salaries,  Wages  and allowances,  \netc. \n(ii) Rent  \n(iii) Other  Administrative  expenses      \n Total      \nTotal  (3)     \nNet balance  at the year end (1+2-3)     \n \nNotes: -(1) Disclosures shall be made under relevant heads based on conditions \nattaching to the grants.  \n \n(2) Plan Funds received from the Central/State Governments are to be shown \nas separate Funds and not to be mixed up with any other Funds.  \n \nPlace:  \nDate :                                                                  Chief  Accounts  Officer  \n \n      Member                                Member                                  Chairperson  72   PFRDA  (Form  of Annual  Statement  of Accounts  and Records) Rules, 2015  \nPENSION FUN D REGULATORY AND DEVELOPMENT AUTHORITY \nSCHEDULE 4  \nATTACHED TO AND FORMING PART OF BALANCE -SHEET AS AT \n31.03.201 __ \nSECURED LOANS AND BORROWINGS  \n(Unit - INDIAN RUPEE)  \nParticulars  Current  year Previous  year \n1. Central  Government  \n2. State  Government  \n3. Financial  Institutions  \n(a) Term  Loans  \n(b) Interest  accrued  and due \n4. Banks  \n(a) Term  Loans  \n-Interest  accrued  and due \n(b) Other  Loans  (specify)  \n-Interest  accrued  and due \n5. Other  Institutions  \n6. Debentures  and Bonds  \n7. Others    \nTotal    \nNote  : Amount  due within  one year \nPlace:  \nDate :                                                                   Chief  Accounts  Officer  \n Member  Member                                        Chairperson  \n \n  PFRDA  (Form  of Annual  Statement  of Accounts  and Records) Rules, 2015  73 \n \nPENSION  FUND REGULATORY AND DEVELOPMENT AUTHORITY  \nSCHEDULE 5  \nATTACHED TO AND FORMING PART OF  \nBALANCE -SHEET A S AT 31.03.201 __ \n  UNSECURED LOANS AND BORROWINGS  \n(Unit – INDIAN RUPEE)  \nParticulars  Current  year Previous  year \n1. Central  Government  \n2. State  Government  \n3. Financial  Institutions  \n4. Banks  \n(a) Term  Loans  \n(b) Other  Loans  (specify)  \n5. Other  Institutions  \n6. Debentures  and Bonds  \n7. Fixed  deposits  \n8. Others  (specify)    \nTotal    \nNote  : Amount  due within  one year \n \nPlace:  \nDate :                                                                        Chief Accounts  Officer  \n           Member         Member                      Chairperson  \n \n \n \n \n \n  74   PFRDA  (Form  of Annual  Statement  of Accounts  and Records) Rules, 2015  \nPENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY  \nSCHEDULE 6  \nATTACHED TO AND FORMING PART OF  \nBALANCE -SHEET AS AT 31.03.201__  \nDEFERRED CREDIT LIABILITIES  \n(Unit – INDIAN  RUPEE)  \nParticulars  Current  year Previous  year \n1. Acceptances secured by hypothecation  \nof Capital  Equipment  and Other  Assets  \n \n2. Others    \nTotal    \nNote  : Amount  due within  one year \n \nPlace:  \nDate :                                                                            Chief  Accounts  Officer  \n            \nMember         Member                      Chairperson  \n \n \n  PFRDA  (Form  of Annual  Statement  of Accounts  and Records) Rules, 2015  75 \n \nPENSION  FUND  REGULATORY  AND  DEVELOPMENT AUTHORITY \nSCHEDULE 7  \nATTACHED TO AND FORMING PART OF BALANCE -SHEET AS AT \n31.03.201____  \nCURRENT LIABILITIES AND PROVISIONS           \n(Unit - INDIAN RUPEE)  \nParticulars  Current  year Previous  year \nCUR RENT  LIABILITIES  \n1. Acceptances  \n2. Sundry Creditors  \n3. Advances  Received    \n4. Interest  Accrued  but not Due on : \n(a) Secured  Loans  / Borrowings  \n(b) Unsecured  Loans  / Borrowings  \n5. Statutory  Liabilities  : \n(a) Overdue  \n(b) Others  \n6. Other  Current  Liabilities  \n(a) Unutilised  grant  as at 31st  March  \npayable  to GOI  \n(c) Others    \nTOTAL    \nPROVISIONS  \n1. For Taxation  \n2. Gratuity  \n3. Trade  Warranties/Claims  \n4. Accumulated  Leave  encashment  \n5. Pension  Contribution  Payable  \n7. Leave  salary  payable  \n8. Others  (specify)    \nTOTAL    \nGRAND TOTAL    \n \nPlace:  \nDate :                                                                         Chief  Accounts  Officer  \n \n        Member  Member   Chairperson  \n  76   PFRDA  (Form  of Annual  Statement  of Accounts  and Records) Rules, 2015  \n \nPENSION  FUND  REGULATORY  AND  DEVELOPMENT  AUTHORITY  \nSCHEDULE  8 \nATTACHED  TO AND  FORMING  PART  OF BALANCE -SHEET  AS AT \n31.03.201_  \nFIXED  ASSETS  \n(Unit  – INDIAN  RUPEE)  \n \n \n \n \nDESCRIPTION  GROSS  \nBLOCK  DEPRECIATION  NET  BLOCK  \nCost/Valu\nation  as at \nbeginning  \nof the \nyear  Addit -\nions \nduri-\nng the \nyear  Dedu -\nctions  \nduri-\nng the  \nyear Cost/Val\nuation  as \nat the \nyear - \nend As at  \nbeginn -\ning   of \nthe \nyear  For \nthe \nyear  On \nDeduc -\ntions \nduring \nthe year  Total  \nupto \nyear  \nend As at \nthe \nCurre -\nnt \nyear  As at  \nthe \nprevi-\nous \nyear  \nFIXED  \nASSETS  \n1. Land  : \n(a) Freehold  \n(b) Leasehold  \n2. Buildings  : \n(a) On Freehold  \nLand  \n(b) On Leasehold  \nLand  \n(c) Ownership \nFlats/  Premises  \n(d) Superstruct -\nures on  Land  \nnot belonging   \nto the entity \n3. Plant  \nMachinery  and \nEquipment  \n4. Vehicle  \n5. Furniture  and \nFixtures  \n6. Office  \nequipments  \n7. Computer/  \nperipherals  \n8. Electrical  \nInstallations  \n9. Library  \nBooks             PFRDA  (Form  of Annual  Statement  of Accounts  and Records) Rules, 2015  77 \n \n10. Other  Fixed  \nAssets  \nTOTAL  OF \nCURRENT  \nYEAR            \nPREVIOUS  \nYEAR            \nCapital  Work -\nin-progres s (a)    \nTotal     \nNote  to be given as  to cost of  assets  on hire purchase  basis  included  above.  \n \nPlace:                                                                                 Chief  Accounts  Officer  \nDate:  \n     Member                                 M ember                                     Chairperson  \n \n \nPENSION  FUND  REGULATORY  AND  DEVELOPMENT  AUTHORITY  \nSCHEDULE  9 \nATTACHED  TO AND  FORMING  PART  OF BALANCE -SHEET  AS AT \n31.03.201_  \n \nINVESTMENTS  FROM  EARMARKED/ENDOWMENT  FUNDS  \n \n(Unit – INDIAN  RUPEE)  \nParticular s Current  year Previous  year \n1. Government  securities  \n2. Other  approved  securities  \n3. Shares  \n4. Debentures  and Bonds  \n5. Subsidiaries  and Joint  ventures  \n6. Others  (to be specified)    \nTotal    \n \nPlace:                                                                              Chief  Accounts  Officer  \nDate:  \nMember                                        Member                          Chairperson  \n \n ']"
75,Who determines the rate and circumstances in which compensatory allowance may be drawn by an employee?,The Chairperson determines the rate and the circumstances in which compensatory allowance may be drawn by an employee who is required to work on holidays or put in extra hours on week days in connection with the Authority's work.,,"[""PFRDA  (Employees’ Service) Regulations, 2015   233 \n Reversion  \n 17  \n An employee promoted from one grade to another shall \nbe liable to be reverted without notice at any time within \none year of such promotion.  \n \nCHAPTER  IV  \nPAY, ALLOWANCES AND OTHER BENEFFITS  \nPay, \nallowances \nand other \nbenefits  18(1)  The Authority, shall at its discretion, determine from time \nto time the pay and allowances applicable to different \ncategories of employe es.  \n \n (2) The Authority, may at its discretion, from time to time \nframe such schemes and allow such other benefits for the \nwelfare of the employees at such terms and conditions as it \nmay determine.  \nWhen \naccrue and \npayable  \n 19 Subject to the provisions  of these Regulations, pay and \nallowances shall accrue from the commencement of the \nservice of an employee, and shall become payable on the \nafternoon of the last working day of each month in respect \nof the service performed during the said month.  \nProvided  that an employee proceeding on ordinary leave \nother than extraordinary leave for a period not less than one \nmonth may be paid in advance one month ’s pay and \nallowances if he applies therefor.  \nWhen not \npayable \nfor part of \na month  20 Pay and allowances s hall not be payable for a part of a \nmonth to an employee who leaves or discontinues his \nservice without due notice during a month, unless such \nnotice has been waived by the competent authority.  \nWhen \nallowance \nto cease  \n 21 Pay and allowances shall cease to accrue from the date as \nan employee ceases to be in service.  \nIn the case of an employee dismissed, removed or \ncompulsorily retired from the Authority ’s service, the pay \nand allowances shall cease from the date of his dismissal, \nremoval or compulsory re tirement. In the case of an \nemployee who dies while in service, they shall cease from \nthe day following that on which the death occurs.  \nAdmissibility \nof allowances  22 Allowances shall only be payable to employees who are \nactually at that time fulfilling  the conditions subject to \nwhich they are admissible.  \nCompens -\natory \nAllowance  23 Notwithstanding the fact that the whole -time of an \nemployee is at the disposal of the Authority, the Authority \nmay grant compensatory allowance, not counting as pay, 234   PFRDA  (Emplo yees’ Service) Regulations, 2015  \n to an employee who is required to work on holidays to put \nin extra hours on week days in connection with the \nAuthority ’s work  \nThe rate at, and the circumstances in which such allowance \nmay be drawn shall be determined by the Chairperson.  \nIncrements  24(1)  In an  incremental scale, the increment shall accrue on an \nannual basis on each stage of that scale, whether such \nservice be probationary, officiating or substantive.  \nProvided that the benefit of increment shall be admissible \nfrom the first of the month in whic h it accrues, irrespective \nof the actual date of its accrual.  \n (2) Officiating service in a higher grade will count for \nincrements in an employee ’s substantive grade as well as \nin the higher grade in which he is officiating and if there is \nan intermediat e grade between the two in which he would \nhave officiated had he not been appointed to officiate in the \nhigher grade, also in the intermediate grade, but the period \nduring which an employee is on leave without pay will not \ncount for increment unless so aut horised by the competent \nauthority for reasons to be recorded in writing.  \n (3) Sanction to draw increments will be given by the \nCompetent authority.  \n (4) No increment may be withheld except as a disciplinary \nmeasure under Regulation 81 and each order wi thholding \nan increment shall state the period for which it is withheld \nand whether the postponement shall have the effect of \npostponing future increments:  \nProvided that if in an incremental scale there is an \nefficiency bar, an employee shall not draw incr ements \nabove that bar until he has been certified fit to do so by the \nCompetent Authority. On each occasion on which an \nemployee is allowed to pass an efficiency bar which has \npreviously been enforced against him, he shall be placed in \nthe incremental scal e at such stage as the authority \ncompetent to remove the bar may fix provided that such \nstage shall not be higher than that at which he would draw \nhis pay, if the bar had not been enforced against him and \nfurther that no increments granted on the removal o f a bar \nshall have a retrospective effect.  \n (5) The Chairperson may, grant stagnation increments to an \nemployee who has reached the last stage in the concerned \nscale.  PFRDA  (Employees’ Service) Regulations, 2015   235 \n Re-fixation \nof pay on \npromotion \nand on \nconfirmation  25(1)  The pay of an employee promo ted from one grade to \nanother shall be initially fixed at the minimum in the scale \nof higher grade, the difference between the pay so fixed \nand the substantive pay of the employee in the old scale, if \nthe later be more, be treated as personal pay;  \n (2) On confirmation in the higher grade, the pay of an \nemployee shall be fixed at the stage in the higher grade \nwhich is next above his substantive pay in the old scale as \non the date of confirmation, if such pay be higher than the \npay drawn by him at the time of confirmation.  \n5[Grant of \nincrement \non \npromotion \ngrade  25A (1) Without prejudice to anything contained in regulation \n24, where an employee is promoted to a higher grade on or \nafter November 1, 2016 -  \n(a) before reaching the maximum of the incremental s cale \nin the pre -promotional grade, the date of the next increment \nin the promotional grade shall be the date of increment as \nexisting in the pre -promotional grade.  \n(b) after having reached the maximum of the incremental \nscale in the pre -promotional grade,  the date of the next \nincrement in promotional grade shall be one year from the \ndate of promotion:  \nProvided that after having reached the maximum of the \nincremental scale in the pre -promotional grade, in cases \nwhere the officer promoted was due to receive  any post \nscale benefits such as personal allowance and stagnation \nincrement in the pre -promotional grade within one year \nfrom the date of actual promotion, the date of increment in \nthe promotional grade shall be the date of accrual of such \npost scale bene fit.] \nDomicile  \n 26(1)  Every employee shall on his appointment declare his \ndomicile in writing to the Authority and if such domicile is \nnot his place of birth he must establish the same to the \nsatisfaction of the Competent Authority.  \n (2) No employee who  has once indicated his domicile, shall be \nallowed to alter the same unless he satisfies the Authority \nthat the change is bonafide and in no case may an employee \nbe permitted to change his domicile in such a manner as to \nincrease the cost to the Authority of any such concession.  \n \n                                                      \n5 Inserted by the Pension Fund Regulatory and Development Authority (Employees' Service) ( First \nAmendment ) Regulations, 2018 dated 31.10.2018.  \n 236   PFRDA  (Emplo yees’ Service) Regulations, 2015  \nCHAPTER -V \nLEAVE AND JOINING TIME  \nKinds of \nleave  27(1)  Subject to the provisions of these Regulations, the \nfollowing kinds of leave may be granted to an employee:  \n  (a) Casual leave and Special Casual leave  \n(b) Ordinary leave  \n(c) Sick leav e and Special leave  \n(d) Maternity leave or Paternity Leave, as the case may be  \n(e) Extraordinary leave  \n(f) Accident leave  \n(g) Other special leave as may be specified by the Authority  \n (2) Pay during leave shall be drawn at full or half rate of leave \npay, according to the  kind of leave availed of by the \nemployee provided that no pay shall be admissible during \nthe extraordinary leave.  \nAuthorities \nempowered \nto grant \nleave  28 The power to grant leave shall vest in the competent \nauthority. All applications for leave shall b e addressed by \nthe employee to the authority empowered to grant leave.  \nPower to \nrefuse \nleave or \nrecall an \nemployee \non leave  29(1)  Leave cannot be claimed as a matter of right. When the \nexigencies of the service so require, discretion to refuse or \nrevoke leave of any description is reserved to the competent \nauthority empowered to grant it, and an employee already \non leave may be recalled by that competent authority when \nit considers necessary in the interests of the service of the \nAuthority.  \nLapse of \nleave on \ncessation \nof service  (2) Save as otherwise specifically provided in these \nRegulations, leave earned by an employee lapses on the date \non which he ceases to be in service.  \nEarlier \nreturn \nfrom leave  \n (3) Unless he is permitted to do so by the competen t authority \nwhich granted his leave, an employee on leave may not \nreturn to duty more than 14 days before the expiry of the \nperiod of leave granted to him.  \nCommence -\nment and \ntermination \nof leave  30(1)  The first day of an employee ’s leave is the working d ay \nsucceeding that upon which he takes over charge.  ""]"
76,What are the grounds for rejection of an application for grant of certificate of registration?,"An application for grant of certificate may be rejected on grounds such as the application being incomplete, unaccompanied by fee or relevant documents, containing incorrect or misleading information, or any other ground that the Authority may specify.",,"['162   PFRDA  (Central  Recordkeeping  Agency) Regulations, 2015  \n(d) Information tech nology capabilities and sufficiently qualified and \nexperienced manpower, as per the  guidelines  including  the requirements  of service  \nstandards  issued  by the Authority  for the purpose.  \n(e) the amounts, numbers or figures, as applicable, in respect of the follow ing \ncriteria shall be specified by the  Authority  on the date  of inviting applications  for \nregistration, - \n(i) The applicant should have minimum Tangible net worth of Rupees \nhundred crores, as on the last day of  the preceding financial year, and the \napplicant sh ould have demonstrated experience in developing and  \nmanaging  technology based  central  administration  and recordkeeping \nsystem;  \n(ii) The applicant should have experience of at least five years of performing \ncentral recordkeeping and  administration  functions;  \n(iii) The applicant should have experience in managing over five lakh \nindividual accounts per year over the  preceding  three years, shall  possess  \nInformation technology  capabilities and sufficiently qualified  and \nexperienced manpower of at least hundred professional  staff with at least \nfifty staff in the area of Operation  & Technology Management;  \n(iv) The applicant  should  have  experience  with developing  and managing  \ntechnology  based  central  administration  & recordkeeping system  \n(v) The applicant should have minimum CMMI level  three certification for \nthe services being offered or  should  acquire the  same within  twelve \nmonths  of commencement  of commercial  operations.  \n(vi) A direct or indirect cross holding by any intermediary or its sponsor under \nthe central recordkeeping  agency  shoul d be less  than forty percent  of the \npaid up  capital.]  \n5.  3[Disclosure of information - (1) While filing the application for registration, \nthe applicant shall disclose all  relevant information including any action or legal \nproceedings initiated against it, its directors or its principal  officers  in the past \nincluding  the pending  proceedings,  for any material  breach  or non-compliance  by \n                                                      \n3 Substituted by PFRDA (Central Recordkeeping Agency) Regulation (Second Amendment ) Regulations, \n2018 w .e.f. 29.07.2020. Prior to  substitution, this clause  read  as under:  \n“Disclosure of information —(1) The Authority, having regard to the interest of the subscribers may make \ndisclosure to the public, the information on the  application  made  by the applicant  by placing  such information  on \na website  as specified  by the Authority,  including  a website  maintained  by the applicant.  \n(2) Any material  change  in the information  furnished  or placed  on the website  pursuant  to these  regulations  \nshall  be intimated  to the Authority  by the applicant  promptly  but not later  than fifteen  days of the occurrence  \nof such change.”  \n  PFRDA  (Central  Recordkeeping  Agency) Regulations,  2015  163 \nthem  of any law , rules,  regulations, and  directions  of the Authority  or of any other  \nregulatory body  or Government.  \n(2) The Auth ority,  having  regard  to the interest  of the subscribers  may disclose  and \nmay also advise  the applic ant to  disclose  all or such  information,  as it may deem  fit \nin the interest of  the subscribers,  in the public  domain.  \n(3) During pendency of the application, the  applicant shall immediately inform \nthe Authority any change in the in formation  furnished under sub  regulation (1) : \nProvided that any material change in the information furnished under sub -\nregulation (1) shall be intimated to t he Au thority by Central Recor dkeeping \nAgency after grant of registration, within fifteen days of the occurrence of  such \nchange.]  \n6. Furnishing  of information  and clarification —(1) The Authority  may require  \nthe applicant  to furnish  any further inf ormation or clarification, for the purpose  of \ndisposal of the application, and, thereafter, in regard to any other  matter  as may be  \ndeemed  necessary by  the Authority.  \n(2) The applicant  shall  furnish  such information  and clarification  to the satisfaction  \nof the Authority,  within  the times spe cified  in this regard  by the Authority.  \n7. Verification of information .—(1) While considering the application, the \ninformation furnished by the applic ant and its eligibility, the Authority may, if it \nso desires, verify the information in any manner it deems necessa ry, which may \ninclude physical verification of documents, office space and inspect the availability \nof office space,  infrastructure  and technological  support  which  the applicant  is \nrequired  to have.  \n(2) For the purpose  of verification  of information,  the Authority  may appoint  any \nperson  including  any of its officers  or an  external auditor  or agency.  \n8. Consideration  of application .—(1) For considering  the eligibility  of the \napplicant  and grant  of certificate  to such applicant, the Authority shall take into \naccount all matters which it deems relevant to the activities for record  keeping \nunder the  National  Pension  System,  or any other  pension  scheme  referred  to in \nclause  (b) of sub-section (1) of  section  12 of the Act, including  but not limited  to \nthe following,  namely: — \n4[(a) whether the applicant satisfies the eligibility criteria specified in these \nregulations and also the terms an d conditions specified  in regulation 4;]  \n(b) whether the grant of certificate is in the interest of subscribers and the objective \nof orderly development of pen sion sector or the National  Pension System.  \n                                                      \n4 Substituted  by PFRDA  (Central  Recordkeeping  Agency)  Regulation  (First  Amendment ) Regulations,  2018  \nw.e.f. 25.06.2018.  Prior  to substitut ion, this sub-clause  read  as under:  \n“whether  the applicant  satisfies  the eligibility  criteria  specified  in these  regulations  and also the terms  and \nconditions  as may be specified  in the selection  process  referred  to in regulation  3;” 164   PFRDA  (Central  Recordkeeping  Agency) Regulations, 2015  \n(2) Any application  for grant  of certificate  may be rejected  on any  of the following  \ngrounds, namely — \n(a) if the application  is not complete  in all respects  and does not conform  to the \nrequirem ents specified  in these  regulations or any selection criteria determined by \nthe Authority on the date of inviting applications for  registration;  \n(b) if the application  is unaccompanied  with fee or relevant  documents  in \nsupport  or the applicant  fails to furnish  such additional  information as required  \nby the  Authority;  \n(c) if the application  contains  incorrect,  false  or misleading  information ; \n(d) any other  ground  that the  Authority  may specify  for consideration  and \nrejection  of application.  \n(3) Where  an application  is rejec ted under  clause  (b) of sub-regulation  (2), the \nAuthority  shall  record  reasons  in wri ting: \nProvided that before rejecting any such application, the Authority shall give the \napplicant an opportunity to  remove  the objection  within such  time as may be \nspecifi ed by the Authority:  \nProvided  further  that where  an application  is rejected  for the reason  that it contains  \nfalse  or misleading  information, no such opportunity may be given and the \napplicant shall not make any application for grant of  certificate  under  these \nregulations  or any other  regulations  for a period  of one year from  the date of such \nrejection.  \n9. Procedure for grant of certificate of registration. —5[(1) The applicant shall \nsubmit a proposal as specified   under regulation 3. In order to be eligible for  \nregistration, the applicant shall be required to qualify, on the date  of submission  of \nits proposal, all  the technical  and commercial  parameters  as specified  by the \nAuthority.]  \n(2) The Authority  may grant  the certificate  of registration  as a central  \nrecordkee ping agency  on being  satisfi ed that -  \n(a) the application  for registration  is complete  in all respects  and is accompanied  \nby all documents  requir ed the rein; \n(b) all information  given  in the application  form  is correct;  \n                                                      \n5 Substituted  by PFRDA  (Central  Recordkeeping  Agency)  Regulation  (First  Amendment ) Regulations,  2018  \nW.e.f.  25.06.2018.  Prior  to substitution,  this sub-clause  read  as under:  \n“(1) The applicant  shall  submit  a proposal  in the format  as may be specified  by the Authority  in respect  of the \nselection  process  under  regulation  3. In order  to be eligible  for registration,  the applicant  shall  be required  to \nqualify,  on the date of submission  of its proposal,  all the technical  and commercial  parameters  as specified by the \nAuthority under the selection process. Out of all proposals received, the best value proposal shall be given the \nopportunity to apply for  certificate  of registration.”  ']"
77,"What are the educational qualifications required for officers in the Technical Stream (Information System) under the PFRDA (Employees' Service) Regulations, 2015?",Bachelor's Degree in Engineering (electrical/electronics and communication/information technology/computer science) or Master's in Computer Application or any Bachelor's Degree in discipline with a postgraduate qualification (minimum 2 years duration) in computers/information technology.,,"[""280   PFRDA  (Emplo yees’ Service) Regulations, 2015  \nBachelor ’s Degree  \n in Engineering \n(electrical/ \nelectronics  and \ncommunication / \ninformation \ntechnology / \ncomputer science) / \nMasters in Computer \nApplication / \nBachelor ’s Degree  \nin any discipline \nwith a post graduate \nqualification \n(minimum 2 years \nduration) in \ncomputers / \ninformation \ntechnology for \nofficers in Tec hnical \nStream (Information \nSystem).  \n \nMaster ’s Degree in \nHindi with English \nas one of the subjects \nat Bachelor ’s Degree \nlevel or Master ’s \nDegree in Sanskrit / \nEnglish / Economics \n/ Commerce with \nHindi as a subject at \nBachelor ’s Degree \nlevel from a \nrecognise d \nUniversity / Institute \nfor officers in the \nRajbhasha (Official \nLanguage) Stream.  \n \nGraduation from a \nrecognized \nuniversity and \nAssociate Chartered \nAccountant (ACA) \nor Fellow Chartered \nAccountant (FCA) \nfrom ICAI (Institute \nof Chartered \nAccountants of \nIndia )/ Associate \nCost and PFRDA  (Employees’ Service) Regulations, 2015   281 \n Management \nAccountant (ACMA) \n[erstwhile Associate \nof Institute of Cost & \nWorks Accountant  \nof India (AICWA)]  \nor Fellow Cost and \nManagement \nAccountant (FCMA) \n[erstwhile Fellow of \nInstitute of Cost & \nWorks Accountant  \nof India (FICWA)]   \nfrom Institute of \nCost Accountants  \nof India (ICMAI) \n[erstwhile Institute  \nof Cost & Works \nAccountants of India \n(ICWAI)] / \nAssociate Company \nSecretary (ACS) or \nFellow Company \nSecretary (FCS) \nfrom Institute of \nCompany Secretaries \nof India (ICSI) / \nCharter ed Financial \nAnalyst (CFA) from \nCFA Institute for \nofficers in the \nFinance & Accounts \nStream.]]  \n \nMinimum 11, 14 & \n17 years of post -\nqualification \nexperience in officer \ncadre in dealing with \nthe problems relating \nto pension /financial \nsector, special \nknowledg e/ \nexperience in law, \ninvestigation, \nfinance, economics, \nAccountancy, \nAdministration or \nany other discipline \nconsidered useful  \nto the Authority.  282   PFRDA  (Emplo yees’ Service) Regulations, 2015  \nGrade \nA/B/C  Direct \nRecruitment and \nInternal \nPromotion.  Upper age 13[30], 30 \nand 35 for Grade A, \nB and C respectively.  \n \n14[Master ’s Degree \nin any discipline, \nBachelor ’s Degree  \nin Law, Bachelor ’s \nDegree in \nEngineering from a \nrecognized \nuniversity, Associate \nChartered \nAccountant (ACA) \nor Fellow Chartered \nAccountant (FCA) \nfrom ICAI (Institute \nof Chartered \nAccountants of \nIndia)/ Associate \nCost a nd \nManagement \nAccountant (ACMA) \n[erstwhile Associate \nof Institute of Cost & \nWorks Accountant of \nIndia (AICWA)] or \nFellow Cost and \nManagement \nAccountant (FCMA) \n[erstwhile Fellow of \nInstitute of Cost & \nWorks Accountant of \nIndia (FICWA)]  \nfrom Institute of \nCost Accountants of \nIndia (ICMAI) \n[erstwhile Institute of \nCost & Works \nAccountants of India \n(ICWAI)] / \nAssociate Company \nSecretary (ACS) or \nFellow Company \nSecretary (FCS) Promotion  \nof internal  \ncandidates  \nfrom Grade \nA and \nGrade B \nrespectively  \nwith \nminimum  \nof 3 years ’ \nservice .  Minimum  \nthree  \nMembers – \ntwo internal \nand one  \nexternal . \n                                                      \n13 Substituted for the words “27” by the Pension Fund Regulatory and Development Authority (Employees’ \nService) ( Amendment ) Regulations, 2020 dated 28.04.2020  \n14 Substituted by the Pension Fund Regulatory and Development Authority (Employees’ Service) \n(Amendment)  Regulations, 2021 dated 01.07.2021. Prior to substitution, it read as under:  \n“Qualification shall be as specified above for Grade D. E and F.”  PFRDA  (Employees’ Service) Regulations, 2015   283 \n from Institute of \nCompany Secretaries \nof India (ICSI) / \nChartered Financial \nAnalyst (CF A) from \nCFA Institute for \nofficers in the \nGeneral Stream.  \nBachelor ’s Degree  \nin Law from a \nrecognized \nuniversity / Institute \nfor officers in the \nLegal Stream.  \nMaster ’s Degree in \nStatistics / \nEconomics / \nCommerce / \nBusiness \nAdministration \n(Finance) / \nEconom etrics for \nofficers in the \nResearch Stream.  \nBachelor ’s Degree  \nin Engineering \n(electrical/ \nelectronics and \ncommunication / \ninformation \ntechnology / \ncomputer science) / \nMasters in Computer \nApplication / any  \nBachelor ’s Degree  \nin discipline with a  \npost grad uate \nqualification \n(minimum 2 years \nduration) in \ncomputers / \ninformation \ntechnology for \nofficers in Technical \nStream (Information \nSystem).  \nMaster ’s Degree in \nHindi with English \nas one of the subjects \nat Bachelor ’s Degree 284   PFRDA  (Emplo yees’ Service) Regulations, 2015  \nlevel or Master ’s \nDegree in Sanskri t/ \nEnglish/ Economics/ \nCommerce with \nHindi as a subject at \nBachelor ’s Degree \nlevel from a \nrecognised \nUniversity/ Institute \nfor officers in the \nRajbhasha (Official \nLanguage) Stream.  \nGraduation from a \nrecognized \nuniversity and \nAssociate Chartered \nAccountant (ACA) \nor Fellow Chartered \nAccountant (FCA) \nfrom ICAI (Institute \nof Chartered \nAccountants of \nIndia)/ Associate \nCost and \nManagement \nAccountant (ACMA) \n[erstwhile Associate \nof Institute of Cost & \nWorks Accountant of \nIndia (AICWA)] or \nFellow Cost and \nManagement  \nAccountant (FCMA) \n[erstwhile Fellow of \nInstitute of Cost & \nWorks Accountant of \nIndia (FICWA)]  \nfrom Institute of \nCost Accountants of \nIndia (ICMAI) \n[erstwhile Institute of \nCost & Works \nAccountants of India \n(ICWAI)] / \nAssociate Company \nSecretary (ACS) or \nFellow Company \nSecretary (FCS) \nfrom Institute of \nCompany Secretaries \nof India (ICSI) / PFRDA  (Employees’ Service) Regulations, 2015   285 \n Chartered Financial \nAnalyst (CFA) from \nCFA Institute for \nofficers in the \nFinance & Accounts \nStream. ] \n \n15[Graduation from  \na recognized \nuniversity and Pass \nor exemption in a ll \nseven (7) ‘Core \nPrinciples ’ subjects \nof the Institute of \nActuaries of India \n(IAI) Examination \nfor officers in the \nActuarial Stream.]  \n \n16[Junior] \nAssistant  \n 17[Direct \nrecruitment only \nthrough written \nExamination]  Upto 30 years VIII \nStandard  \n \n - \n \n - \n \n 18[***].  \nDriver  -do- -do- - - -do- \n \n[Ref. amendment 3.C., Pension Fund Regulatory and Deve lopment Authority \n(Employees ’ Service) ( First Amendment ) Regulations, 2018 dated 31.10.2018, \nthere is no need of change   in row 6 (Driver), since the corresponding provisions \nof row 5 (Junior Assistant) are repeated.]  \n1. General/ Relaxation:  \na) In the event of non -availability of adequate number of candidates for interview, \nthe minimum eligible service of three years for promotion to the next higher grade \nor post may be relaxed b y the competent authority upto a period not exceeding six \nmonths.  \nb) The crucial date for determining the upper age limit specified in the schedule \nshall be the date indicated in the advertisement.  \nc) The upper age limit may be relaxed by the Competent A uthority upto a \n                                                      \n15 Inserted by the Pension Fund Regulatory and Development Authority (Employees' Service) (Second  \nAmendment ) Regulations, 2021 dated 01.07.2021.  \n16 Substituted for the word “General” by the Pension Fund Regulatory and Development Authority \n(Employees' Service) ( First Amendment ) Regulations, 2018 dated 31.10.2018.  \n17 Substituted  for the words “Direct Recruitment” by the Pension Fund Regulatory and Development \nAuthority (Employees' Service) ( First Amendment ) Regulations, 2018 dated 31.10.2018.  \n18 Omitted by the Pension Fund Regulatory and Development Authority (Employees' Service) ( First \nAmendment ) Regulations, 2018 dated 31.10.2018. Prior to omission, it read as “Minimum three members -\ntwo internal and one external”.  286   PFRDA  (Emplo yees’ Service) Regulations, 2015  \nmaximum of three years for the reasons to be recorded in writing, if in the opinion \nof the Competent Authority sufficient number of candidates with the prescribed \nage limit is not likely to be forthcoming and high academic and professional \nqualifications and experience of the candidates deserve consideration of such, \ncandidates.  \n(d) The Authority may, after recording the reasons in writing, relax the minimum  \nqualifications and experience required for various posts.  \n2. Reservations:  \na) Re servation, relaxation of age limit and other concessions required to be \nprovided for candidates belonging to the Scheduled Caste, Scheduled Tribes, other \nbackward classes, Ex -Service men and other special categories of persons shall be \nas applicable in ter ms of orders/guidelines etc. issued by the Central Government \nfrom time to time.  \nb) In every selection committee constituted for the purpose of the recruitment, an \nofficer of appropriate rank belonging to the Scheduled Caste or Scheduled Tribe \nmay also be  inducted as a member in case no member of selection committee \nbelongs to Scheduled caste or Schedule Tribe.  \n3. Advertisement of Vacancies:  \nVacancies in the Authority to be filled by direct recruitment shall be notified in the \nfollowing manner:  \na) In re lation to direct recruitment of posts except as specified in clause (b) below, \nit shall be notified by advertisement in at least three leading daily national \nnewspapers, with a view to cover the maximum area of the country.  \nb) In relation to such posts to  which the law relating to employment exchanges is \napplicable, by notifying the concerned employment exchange with a request to \nnominate five candidates against each vacancy. In case, the candidates nominated \nby the employment exchange fail to satisfy the requirement of selection, the \nvacancies shall be filled subject to the provisions of the law applicable to such \nemployment exchanges, by issuing advertisement as per Clause (a) above.  \n4. Medical Fitness and Verification of Antecedents on initial appointme nt in the \nAuthority:  \na) A candidate, except in the case of appointments by deputation or by promotion, \nwill be required to undergo medical tests as per prescribed standards to satisfy the \nappointing Authority of his medical fitness.  \nb) The antecedents of  a candidate, except in the case of appointments by deputation \nor by promotion, will be verified as per the prescribed procedure and the said \nverification shall be completed during the period of probation.  \n \n \nAPPENDIX  ""]"
78,"What is the purpose of the certification of registration as an aggregator for National Pension System-Swavalamban as per Schedule IV of PFRDA (Aggregator) Regulations, 2015?","The purpose is to grant certification of registration and commencement of business to an aggregator under the National Pension System-Swavalamban, subject to conditions specified in the certificate of registration.",,"['PFRDA  (Aggregator ) Regulatio ns, 2015  147 \n(Signature)___________  \nName:______________________      (In the capacit y of)____________________  \nDuly authorized to sign this undertaking for and on behalf of:  \n(Name and Address of Organization)                 (Seal/Stamp of Organization)  \nAnnexure 4: Format for providing Governance Structure  \nAn entity shall provide detail s of its Governance structure covering:  \n 1. Board structure  \n 2. List of Independent directors (if mandated under the relevant statute \ngoverning the entity.)  \n 3. Monitoring mechanism  \n 4. Cash handling/monitoring mechanism  \n 5. Mechanism for detection/co ntrol of frauds etc.  \n 6. Customer grievance redressal process  \n 7. Any other relevant matter  \nAnnexure 5: Technical & Manpower Capacity Undertaking  \nIt is hereby confirmed that I/we are entitled to act on behalf of our \ncorporation/company/firm/organization  and empowered to provide this \nundertaking that my/  our institution, is having necessary technical & manpower \ncapacity for providing National Pension System -Swavalamban services.  \nWe have in every branch, adequate IT Infrastructure for accessing the centra l \nrecordkeeping agency system. We also have necessary infrastructure and \ncapability to demonstrate and electronically transmit National Pension System \nsubscriber contribution and information as per specified timelines. We also have \ncapability to establish necessary back office systems, procedures and software for \nreceiving transaction requests and upload into the central recordkeeping agency \nsystem, issuing of acknowledgment etc. as laid down in operating guidelines.  \nI/We undertake to facilitate inspection /due diligence by officer authorised by the \nAuthority as specified by the Authority from time to time.  \nWe also declare that all individuals assigned on National Pension System related \nactivities have necessary capability and would be trained on all operat ional issues \nto ensure proper discharge of National Pension System related responsibilities \nbefore their deployment  \nDated this         Day of   20__  \n(Signature)___________  \nName:______________________    (In the capacity of)____________________  \nDuly aut horized to sign this undertaking for and on behalf of:  \n(Name and Address of Organization)                 (Seal/Stamp of Organization)  \n 148   PFRDA  (Aggregator ) Regulations, 2015  \nAnnexure 6: Business Plan for National Pension System -Swavalamban  \nObjective  Description  \nTarget groups   \nPromotion Str ategy   \nDistribution Strategy (Convergence of \nexisting Business and National Pension \nSystem - Swavalamban)   \nPersistency Maintenance Strategy   \nSpecial activities, if any, that would be \nundertaken to promote National Pension \nSystem –Swavalamban across variou s target \ngroups/geographical areas   \nAny other note   \nDated this        Day of   20__  \n(Signature)___________  \nName:___________________        (In the capacity of)____________________  \nDuly authorized to sign this undertaking for and on behalf of:  \n(Name a nd Address of Organization)                 (Seal/Stamp of Organization)  \n \nAnnexure -7: Format for seeking exemption/relaxation of any eligibility criteria  \nS. No.  Reference in Regulation  \n(Clause No. & Page No.)  Extent of Deviation  Brief Reason   \n1.    \n    \n    \n    \nDated this        Day of   20__  \n(Signature)___________  \nName:_________________               (In the capacity of)________________  \nDuly authorized to sign this undertaking for and on behalf of:  \n(Name and Address of Organization)                 (Seal/Stamp of Organization)   PFRDA  (Aggregator ) Regulatio ns, 2015  149 \nSCHEDULE III  \nPension Fund Regulatory and Development Authority (aggregator) \nRegulations, 2015  \n[See regulation 5]  \nFees payable to the Pension Fund Regulatory and Development Authority by \nthe aggregator  \nApplication Fee of rupee ten thousand only in the form of DD drawn in favour of \n“The Pension Fund Regulatory and Development Authority ” and payable at New \nDelhi shall be submitted along with the Application  \nIt is hereby confirmed that I/we are submitting rupee ten thousand only in the form \nof DD drawn in favour of “The Pension Fund Regulatory and Development \nAuthority ” and payable at New Delhi  \nName of The \nOrganization  DD No  DD date  Bank \nName  Amount  \n     \nI/we understand that the amount paid towards application fee is non -refundable  \nDated this        Day of   20__  \n(Signature)___________  \nName:______________________      (In the capacity of)____________________  \nDuly authorized to sign this undertaking for and on behalf of:  \n(Name and Address of Organization)                       (Seal/Stamp of Organization)  \n  150   PFRDA  (Aggregator ) Regulations, 2015  \nSCHEDULE IV  \nPension Fund Regulat ory and Development Authority (A ggregator) \nRegulations, 2015  \n [See regulation 9 (1)]  \n \nREG. No. _________  \n \nCertification of registration as an aggregator for National Pension System - \nSwavalamban.  \n \n1. In exercise of the powers conferred by sub -section (3) of section 27 of \nthe Pension Fund Regulatory and Development Authority Act, 2013 (23 of \n2013), the Pension Fund Regulatory and Development Authority hereby grants \nthis certificate of reg istration and commencement of business to M/s. (name of \nthe entity), as an aggregator under the National Pension System.  \n \n2. The registration code for the aggregator is ______.  \n \n3. This registration shall be valid subject to conditions specified in the \ncertifi cate of registration under the Pension Fund Regulatory and Development \nAuthority (aggregator) Regulations, 2015.  \n \n  Date: ___________  \n  Place: New Delhi  \nBy Order  \nFor and on behalf of the PFRDA  \nAuthorised Signatory  \n \n  PFRDA  (Aggregator ) Regulatio ns, 2015  151 \nSCHEDULE V  \n[See regulation 10(2) &(3)]  \nPENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY  \n(FORM C)  \nRENEWAL FORM  \nUNDER NATIONAL PENSION SYSTEM - SWAVALAMBAN  \nFOR MEMBERS OF <ORGANISATION NAME>  \nTable of Contents   \nCovering Letter  \nAggregator Compliance Sheet  \n Annexure 1: Legal Undertaking   \nAnnexure 2: Security deposit Undertaking  \nAnnexure 3: National Pension System -Swavalamban Performance  \nCovering Letter  \n(to be provided on company/official letter head)  \nDate DDth Month, YYYY  \nTo  \nXYZ  \nExecutive Director  \nPension Fund Regulatory Developme nt Authority  \n1st Floor, ICADR Building,  \n Plot No 6 Vasant Kunj Institutional Area  \nPhase -II, New Delhi -110070  \nSub: -Renewal of Registration as Aggregator under National Pension System - \nSwavalamban for members of <Organization Name>  \nDear Sir/Madam,  \n2. I/We  are desirous to continue our registration as an Aggregator under “National \nPension System  Swavalamban ” for providing prescribed services as specified \nunder the Pension Fund Regulatory and Development Authority (aggregator) \nRegulations -2015, operational gu idelines and other associated rules, \nguidelines/instructions issued by the Authority.  \n5. Necessary details with supporting documents, including prescribed fee, are \nattached with this letter in specified format for consideration of our request.  152   PFRDA  (Aggregator ) Regulations, 2015  \n6. I/we un derstand that the Authority reserves the right to accept or reject our \nrequest. It is hereby confirmed that I/we are entitled to act on behalf of our \ncorporation/company/firm/organization and empowered to sign this letter as well \nas other such letters/docu ments which may be required for registration.  \nDated this        Day of   20__  \n(Signature)___________  \nName:______________________     (In the capacity of)____________________  \nDuly authorized to sign this undertaking for and on behalf of:  \n(Name and Addr ess of Organization)                       (Seal/Stamp of Organization)  \n \nAggregator Compliance Sheet   \nName of the \nEntity   \nEntity has net -\nworth of  Ref: \nsub-regulation (7) \nof regulation 3  As on date of application for renewal  \n        Rs 50 Lakh and above   \n        Equal to or more than Rs 1 Crore  Net-worth \nCertificate \nfrom \nChartered \nAccountant is \nprovided  \n        Yes \n        No \nEntity financial \nstatus Ref: sub -\nregulation (4) of \nregulation 3  Whether entity has incurred losses in at least 3 years of the \npast five years  \n        Yes \n        No  \nNumber of years for which loss was incurred to be \nindicated  \nLegal \nUndertaking Ref: \nsub-regulation \n(11) of regulation \n3 Absence of convictions and restraint \norders by any financial sector regulator or \nby the court  of the law in any of the \npreceding 5 years.  Declaration in \nAnnexure 1 is \nprovided  \n        Yes \n        No \nsecurity deposit in \nthe form of bank \nguarantee/ fixed \ndeposit/ Demand \ndraft from any  Undertaking \nin Annexure 2 \nis provided  \n        Yes ']"