Section 8 in Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012
8. Procedure where registration is refused.
(1)After considering an application made under regulation 3, if the Board is of the opinion that a certificate should not be granted, it may reject the application after giving the applicant a reasonable opportunity of being heard.(2)The decision of the Board to reject the application shall be communicated to the applicant within thirty days.(3)Where an application for a certificate is rejected by the Board, the applicant shall cease to carry on any activity as an Alternative Investment Fund:Provided that nothing contained in these regulations shall affect the liability of the applicant towards its existing investors under law or agreement.
