2.11.12:Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017
12. Show-cause notice.
(1) The show-cause notice shall be in writing and shall state-
(a) the provisions of the Code under which it has been issued;
(b) the details of the alleged facts;
(c) the details of the evidence in support of the alleged facts;
(d)Substituted vide Insolvency and Bankruptcy Board of India (Inspection and Investigation) (Amendment) Regulations, 2022. dated 14.06.2022. To view the Notification, Click Here the provisions of the Code, rules, regulations and guidelines thereunder allegedly violated, or the manner in which the public interest is allegedly affected; the provisions of the Code, or the rules, regulations or guidelines made thereunder, allegedly violated;
(e) the actions or directions that the Board proposes to take or issue, if the allegations are established; andOmitted vide Insolvency and Bankruptcy Board of India (Inspection and Investigation) (Amendment) Regulations, 2022. dated 14.06.2022. To view the Notification, Click Here
(f) the time within which the notice may make written submission.
(g) the manner in which service provider is required to respond to the show cause notice; andInserted vide Insolvency and Bankruptcy Board of India (Inspection and Investigation) (Amendment) Regulations, 2022. dated 14.06.2022. To view the Notification, Click here
(h) consequences of failure to respond to the show-cause notice.Inserted vide Insolvency and Bankruptcy Board of India (Inspection and Investigation) (Amendment) Regulations, 2022. dated 14.06.2022. To view the Notification, Click here
(2) For the purposes of clause (e) of sub-regulation (1), the Board shall take into account, but not limited to, the following factors: –
(a) the nature and seriousness of the alleged contraventions, including whether it was deliberate, reckless or negligent on the part of the noticee;
(b) the consequences and impact of the alleged contravention, including –
(i) unfair advantage gained by the noticee as a result of the alleged contravention;
(ii) loss caused, or likely to be caused, to clients or any other person as a result of the alleged contravention; and
(iii) the conduct of the noticee after the occurrence of the alleged contravention, and prior to the alleged contraventions.
(3) The show-cause notice shall provide at least fifteenSubstituted vide Insolvency and Bankruptcy Board of India (Inspection and Investigation) (Amendment) Regulations, 2022. dated 14.06.2022. To view the Notification, Click here 21 days to the noticee to make a written submission.
(4) The show-cause notice shall state, if a noticee fails to respond under sub-regulation (3) within the given time, it shall be disposed of based on the material available on record.
(5) The show-cause notice shall enclose copies of relevant documents and extracts of relevant portions from the report of investigation or inspection, or other records.
(6) A show-cause notice shall be served on the service provider in electronic form at the email address provided by the service provider to the Board and a copy shall also be sent by registered post.Substituted vide Insolvency and Bankruptcy Board of India (Inspection and Investigation) (Amendment) Regulations, 2022. dated 14.06.2022. To view the Notification, Click here A show-cause notice issued shall be served on the noticee-
(a) by sending it to the noticee at its registered office, by registered post with acknowledgement due; and
(b) by an appropriate electronic form to the email address provided by the service provider to the Board.
(7) The Board shall refer the show-cause notice to the Disciplinary Committee alongwith all the relevant records including the written submissions, if any, made by the noticee in the matter.