Section 10 in Securities And Exchange Board Of India (Venture Capital Funds) Regulations, 1996
10. Effect of refusal to grant certificate.-
(1)Any applicant whose application has been rejected under regulation 9 shall not carry on any activity as a venture capital fund.(2)Any company or trust [or a body corporate] [Inserted by S.O. 831(E), dated 15.9.2000] referred to in sub-regulation (2) of regulation 3, whose application for grant of certificate has been rejected under regulation 9 by the Board shall, on and from the date of the receipt of the communication under sub-regulation (2) of regulation 9, cease to carry on any activity as a venture capital fund.(3)The Board may in the interest of the investors issue directions with regard to the transfer of records, documents or securities or disposal of investments relating to its activities as a venture capital fund.(4)The Board may in order to protect the interests of the investors appoint any person to take charge of records, documents, securities and for this purpose also determine the terms and conditions of such an appointment.
