3. Inspection by the Board.
(1) The Board shall conduct inspection of such number of service providers every year, as may be decided by the Board from time to time.
(2) Without prejudice to provisions of sub-regulation (1), the Board may conduct inspection of a service provider under section 218.
(3) The Board may, for the purposes of this regulation, by an order, direct an Inspecting Authority to conduct an inspection of records of a service provider for purposes specified under sub-regulation (4).
(4) The purposes under sub-regulation (3) include –
(a) to ensure that the records are being maintained by a service provider in the manner required under the relevant regulations;
(b) to ascertain whether adequate internal control systems, procedures and safeguards have been established and are being followed by a service provider to fulfill its obligations under the relevant regulations;
(c) to ascertain whether any circumstance exists which would render a service provider unfit or ineligible;
(d) to ascertain whether the provisions of the Code, or the rules, regulations and guidelines made thereunder and the directions issued by the Board, if any, are being complied with;
(e) to inquire into the complaints received from clients or any other person on any matter having a bearing on the activities of a service provider; and
(f) such other purpose as may be deemed fit by the Board in furtherance of the objectives of the Code.
(5) The order referred to in sub-regulation (3) shall contain-
(a) scope of inspection;
(b) composition of Inspecting Authority;
(c) timelines for conducting the inspection;
(d) reporting of progress in inspection;
(e) submission of interim inspection report, if any; and
(f) submission of inspection report.
(6) The Board and the Inspecting Authority shall make every effort to keep the inspection confidential and to cause the least burden on, or disruption to, the business of the service provider under inspection.