Markets regulator SEBI has put in place revised norms for improving investors money. Also, a registered insolvency professional will be appointed as administrator to undertake the sale of assets.
The regulator has revised the procedures to be followed for refunding the investors money to the failure of respecting or refunds orders passed by it.
In case an entity is not traceable or is not obeying with SEBI directions, the recovery officer can appoint an administrator for the purpose of selling the properties attached, the regulator said in a notification.
Only an entity registered with the IBBI as insolvency resolution professional would be considered eligible for appointment as administrator.
The IBBI is implementing the insolvency and Bankruptcy code.
Under the rules, no person will be appointed as an administrator where such an appointment may be objected.
SEBI in accordance the condition and terms of appointment including remuneration will be specified on the case to case basis after taking into consideration the quantum of work, the number of investors and the number of investors and the quantum of money involved.
The norms would be applicable in relation to recovery of disgorgement in amount orders by the market regulator.
The news regulations SEBI (Appointment of Administrator and Procedure for refunding to the investor).
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