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Refusals/Revocations/Cancellations under Securities Act

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Aadesh Kandel,

Last Updated: 2022-07-28

 

Refusal for License for Securities Business:

  1. Such company or body has been insolvent
  2. The application is not accompanied by required documents and particulars
  3. If it is not appropriate to issue the license as per section 58(2)(FEES)
Acronym - DAI

Cancellation of Permission for CIS:

  1. Failure to fulfil the necessary terms and condition of operation in a satisfactory manner
  2. Not appropriate to continue in the interest of participants
  3. Violation of act, rules, bye-laws or provision of false details to the Board in respect of the scheme

Board may hold necessary Enquiry with the manager, depository, employee and director related with such scheme

Board may get the account settled or cleared by refunding the investment and returns of the participants or get the scheme operated by other scheme managers



Acronym - VAT



Refusal to issue license to carry on stock exchange:

The Board may, on any of the following conditions, refuse to issue a license to a body corporate to carry on a stock exchange:

  • Not Necessary - based on the development of industry/business and feasibility of the existing transactions in securities,
  • Not just and Appropriate - protection of interests of investors

the Board shall give a notice assigning the reason for such refusal to the concerned body corporate.



Acronym - NA
Corporate Law

Published By

Aadesh Kandel

Category : Corporate Law

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