The Ministry of Finance has notified the Securities Contracts (Regulation) (Procedure for Holding Inquiry and Imposing Penalties) Rules, 2021 vide notification dated December 31, 2021, amending the Securities Contracts (Regulation) (Procedure for Holding Inquiry and Imposing Penalties) Rules, 2005 in the following manner:
Rule 7 prescribing rules about service of notices and orders has been substituted.
The modes of service of notice/order are:
- by delivering or tendering it to that person or his duly authorised agent; or
- by sending it to the person by fax or electronic mail or electronic instant messaging services along with electronic mail or by courier or speed post or registered post:
Provided that the courier or speed post or registered post shall be sent to the address of his place of residence or his last known place of residence or the place where he carried on, or last carried on, business or personally works, or last worked, for gain, with acknowledgment due:
Provided further that a notice sent by fax shall bear a note that the same is being sent by fax and in case the document contains annexure, the number of pages being sent shall also be mentioned: Provided also that a notice sent through electronic mail or electronic instant messaging services along with electronic mail shall be digitally signed by the competent authority and bouncing of the electronic mail shall not constitute valid service.
Further in case of failure to serve a notice or an order through any one of the modes provided under sub-rule (1), the notice or order may be affixed on the outer door or some other conspicuous part of the premises in which the person resides or is known to have last resided, or carried on business or personally works, or last worked, for gain and a written report thereof shall be prepared in the presence of two witnesses.
The purpose of the amendment was to include ‘electronic instant messaging service’ to the modes of service of notice/order. It provides that the notice sent should be digitally signed by competent authority and in case of bouncing of the electronic mail, it wouldn’t be considered valid service of notice.