Section 25 in The Securities And Exchange Board Of India (Depositories And Participants) Regulations, 1996
25. Effect of refusal to renew a certificate of registration.-
Any participant whose application for a certificate of registration as a participant has been rejected by the Board under regulation 24 shall from the date of expiry of the certificate of registration sought to be renewed, cease to carry on any activity as a participant:Provided that the Board may, in the interest of the investors in the securities market permit the participant to carry on activities undertaken prior to the receipt of the intimation of refusal subject to such condition as the Board may specify.
