(1) For the purposes of adjudging under section 28, the Authority shall appoint any of its officers not below the rank specified by regulations to be an adjudicating officer for holding an inquiry as may be determined by regulations, after giving the person concerned a reasonable opportunity of being heard for the purpose of imposing any penalty.
     (2) While holding an inquiry, the adjudicating officer shall have the power to summon and enforce the attendance of any person acquainted with the facts and circumstances of the case to give evidence or to produce any document which, in the opinion of the adjudicating officer, may be useful for or relevant to the subject matter of the inquiry and if, on such inquiry, he is satisfied that the person has failed to comply with the provisions of section 28, he may recommend such penalty as he thinks fit in accordance with the provisions of that section, to the member in charge of investigation and surveillance.
     (3) The penalty shall be imposed by a member other than the member in charge of investigation and surveillance:
     Provided that while adjudging the quantum of penalty under section 28, the member shall have due regard to the following factors, namely:—
         (a) amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default;
         (b) amount of loss caused to a subscriber or group of subscribers; and
         (c) the repetitive nature of the default.