Section 37 in Securities And Exchange Board Of India (Merchant Bankers) Regulations, 1992
37. Cancellation of registration.-
A penalty of cancellation of registration of a merchant banker may be imposed where(i)the merchant banker indulges in deliberate manipulation or price rigging or cornering activities affecting the securities market and the investors interest;(ii)the financial position of the merchant banker deteriorates to such an extent that the Board is of the opinion that his continuance as merchant banker is not in the interest of investors;(iii)the merchant banker is guilty of fraud, or is convicted of a criminal offence;(iv)in case of repeated defaults of the nature mentioned in regulation 36 provided that the Board furnishes reasons for cancellation in writing.
