Inspection and investigation reports: appropriate enforcement action may follow under the intermediary regulatory framework following review.

Following consideration of an inspection or investigation report, the Board or its chairman may take action considered fit and appropriate, including enforcement action under the intermediary regulatory framework. The provision governs regulatory action against merchant bankers after inspection or investigation. The earlier framework required communication of inspection findings and an opportunity of hearing before action, and permitted directions for measures necessary to protect the securities market and secure compliance.

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