(7)The Director of Income-tax (Exemptions) shall withdraw the approval granted under sub-rule (6) in the following circumstances, namely :-(a)if the venture capital fund or the venture capital company-(i)fails to make investments in the manner specified in sub-rule (5);(ii)invests more than twenty per cent of the monies raised by a venture capital fund or twenty per cent of paid-up share capital of the venture capital company, as the case may be, in one venture capital undertaking;(iii)makes an investment of more than forty per cent in the equity capital in one venture capital undertaking;(iv)fails to maintain books of account and get such accounts audited by an accountant or fails to file the audit report required in clause (f) of sub-rule (5);(v)violates the provisions of the Act or rules made thereunder;(b)if the certificate of registration granted under section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), to a venture capital fund or a venture capital company is suspended or cancelled by the Securities and Exchange Board of India.
