Cancellation and suspension of venture capital fund registration require enquiry, show cause process and Board directions on records and transfer.

The Board may cancel or suspend a venture capital fund's certificate for fraud, conviction for offences involving moral turpitude, repeated defaults, or contraventions; such action requires an enquiry by appointed enquiry officer(s) with notice, opportunity to reply and be heard, submission of evidence, an enquiry report recommending action, issuance of a show cause notice, and a Board order after consideration. Suspension and cancellation carry specific restrictions and Board directions regarding records, custody and transfer, may be published, and appeals lie to the Securities Appellate Tribunal; parallel action against intermediaries is permitted subject to applicable procedures.

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