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of <h1>SEBI May Withdraw SRO Recognition for Trade or Public Interest; SRO Must Respond and Cease Operations if Ordered.</h1> If the Securities and Exchange Board of India (SEBI) determines that a Self Regulatory Organization's (SRO) recognition should be withdrawn for trade or public interest, it will issue a written notice to the SRO's Board of Directors. The SRO is given an opportunity to respond before SEBI can withdraw recognition by order. Upon withdrawal, the SRO must cease operations and follow any directives issued by SEBI, with the process treated as if a renewal application was rejected. The decision is promptly communicated to the SRO, which must comply with the specified regulations.
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