INSPECTION BY SEBI :

Regulation 24 provides that SEBI may, appoint one or more persons to undertake the inspection and investigation of the books of account, records and documents of the issuer or merchant banker or any other intermediary associated with the public issue, disclosure or listing of non-convertible redeemable preference shares, as governed under these regulations, for any of the purposes mentioned below. Regulation 24(2) provides the various purposes of inspection, namely:-

(a) to verify whether the provisions of the Companies Act, 2013, Securities Contracts (Regulation) Act, 1956, Depositories Act, 1996, the rules and regulations made thereunder in respect of issue of securities have been complied with;

(b) to verify whether the requirement in respect of issue of securities as specified in these regulations has been complied with;

(c) to verify whether the requirement of listing conditions and continuous disclosure requirement have been complied with;

(d) to inquire into the complaints received from investors, other market participants or any other persons on any matter of issue and transfer of securities governed under these regulations;

(e) to inquire into affairs of the issuer in the interest of investor protection or the integrity of the market  governed under these regulations;

(f) to inquire whether any direction issued by SEBI has been complied with. While undertaking an inspection by the inspecting authority or SEBI, as the case may be, shall follow the procedure specified by SEBI for inspection of the intermediaries.