PROCEDURE FOR INSPECTION AND INVESTIGATION :

SEBI can appoint one or more persons as inspecting authority to undertake inspection and investigation of the books of account, records and documents relating to a designated depository participant for any of the following purposes, namely,-

– To ensure that the books of account, records including telephone records and electronic records and documents are being maintained by DDPs.

– To ascertain whether any circumstances exist which would render the DDPs unfit or ineligible;

– To inquire into the complaints received from investors, clients, other market participants or any other person on any matter having a bearing on the activities of the DDPs.

– To ascertain whether the provisions of the securities laws and the directions or circulars issued are complied.

– To ascertain whether the systems, procedures and safeguards which have been established and are being followed by DDPs are adequate; and

– To investigate suo motu into the affairs of DDPs in the interest of the securities market or in the interest of investors.