POWER OF CENTRAL GOVERNMENT TO CALL FOR PERIODICAL RETURNS AND MAKE DIRECT ENQUIRIES :
Section 6 enjoins that every recognised stock exchange shall furnish to SEBI, such periodical returns relating to its affairs as may be prescribed. Every such stock exchange and every member thereof shall maintain and preserve for such periods not exceeding five years such books of accounts, and other documents as the Central Government, after consultation with the stock exchange concerned, may prescribe in the interest of the trade or
in the public interest, and such books of account, and other documents shall be subject to inspection to all reasonable times by SEBI.
If SEBI is satisfied that it is in the interest of the trade or in public interest so to do, may by order in writing –
(a) call upon a recognised stock exchange or any member thereof to furnish in writing such information or explanation relating to the affairs of the stock exchange or of the member in relation to the stock exchange as SEBI may require; or
(b) appoint one or more persons to make an inquiry in the prescribed manner in relation to the affairs of the governing body of a stock exchange or the affairs of any of the members of the stock exchange in relation to the stock exchange and submit a report of the result of such inquiry to the SEBI within such time as may be specified in the order or, in the case of an inquiry in relation to the affairs of any of the members of a stock exchange, direct the governing body to make the inquiry and submit its report to SEBI.
Where an inquiry in relation to the affairs of a recognised stock exchange or the affairs of any of its members in
relation to the stock exchange has been undertaken –
(a) every director, manager, secretary or other officer of such stock exchange;
(b) every member of such stock exchange;
(c) if the member of the stock exchange is a firm, every partner, manager, secretary or other officer of the firm; and
(d) every other person or body of persons who has had dealings in the course of business with any of the persons mentioned in clauses (a), (b) and (c) whether directly or indirectly; shall be bound to produce before the authority making the inquiry all such books of account, and other documents in his custody or power relating to or having a bearing on the subject-matter of such inquiry and also to furnish the authorities within such time as may be specified with any such statement or information relating thereto as may be required of him.
Every stock exchange shall furnish to the Central Government and to SEBI a copy of its annual report which
shall contain such particulars as may be prescribed by Central Government/SEBI.