Rule 3 - Adjudication of penalties.

Adjudication of penalties requires written show cause notice, electronic replies, hearing opportunity and consideration of specified penalty factors.

The rule establishes an adjudication process where appointed officers issue a written show cause notice specifying alleged non compliance and maximum penalty, require electronic replies (with limited extensions), and may summon for physical appearance and oral representation. Orders must be dated, reasoned and communicated to parties and uploaded online. The adjudicating officer may compel attendance and document production, proceed in absence of non compliant persons, and must consider factors such as company size, nature of default, public injury, repetition, disproportionate gain and investor loss when quantifying penalty; payment is through the Ministry portal and proceeds go to the Consolidated Fund.