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    Question

    What is the initial step the adjudicating officer must

    take as per the Securities and Exchange Board of India (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 when holding an inquiry under sections 15A, 15B, 15C, 15D, 15E, 15F, 15G, 15HA, and 15HB?
    A The adjudicating officer must directly impose a penalty on the person Correct Answer Incorrect Answer
    B The adjudicating officer must file a formal complaint with the court Correct Answer Incorrect Answer
    C The adjudicating officer must issue a notice to the person requiring them to show cause within at least fourteen days Correct Answer Incorrect Answer
    D The adjudicating officer must refer the matter to the Central Government for further action Correct Answer Incorrect Answer
    E The adjudicating officer must immediately schedule a hearing without prior notice. Correct Answer Incorrect Answer

    Solution

    Holding of inquiry 4. (1) In holding an inquiry for the purpose of adjudging under sections 15A, 15B, 15C, 15D, 15E, 15F, 15G 1, 15HA and 15HBwhether any person has committed contraventions as specified in any of sections 15A, 15B, 15C, 15D, 15E, 15F, 15G 2, 15HA and 15HB the adjudicating officer shall, in the first instance, issue a notice to such person requiring him to show cause within such period as may be specified in the notice (being not less than fourteen days from the date of service thereof) why an inquiry should not be held against him.

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