- The Board or the Chairman shall after consideration of inspection or investigation report or investigation report referred to in Regulation 64, communicate the findings of the inspecting officer to the mutual fund, trustees or asset management company as the case may be, and give him an opportunity of being heard:

Provided that if any proceedings under Chapter VIII are initiated the procedure under Chapter VIII shall be followed.

(2)

On receipt of the reply if any, from the mutual fund, trustees or assets management company, as the case may be, the Board may call upon the trustees or asset management company to take such measures as the Board may deem fit in the interest of the investors, securities market and for due complaince with the provisions of these regulations.