Securities And Exchange Board Of India - Subsection
Section 10(1) in The Securities and Exchange Board of India (Intermediaries) Regulations, 2008
(1)Where an intermediary has failed to make an application under sub-regulation (4) of Regulation 3 or where an existing intermediary has been refused grant of certificate under these regulations, the intermediary shall:(a)forthwith cease to act as such intermediary;(b)transfer its activities to another intermediary which has been granted a certificate for carrying on such activity and allow its clients or investors to withdraw or transfer their securities or funds held in its custody without any additional cost to such client or investor;(c)make provisions as regards liability incurred or assumed by the intermediary,(d)take such other action, within the time period and in the matter, as may be required under the relevant regulations or as may be directed by the Board.
