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<h1>SEBI Regulation 9: Rejected Applicants Must Halt Venture Capital Activities and Comply with SEBI Directions for Record Management.</h1> An applicant whose application is rejected under regulation 9 of the SEBI (Venture Capital Funds) Regulations, 1996, is prohibited from engaging in any venture capital fund activities. Companies, trusts, or bodies corporate whose applications are denied must cease such activities from the date they receive the rejection notice. The Securities and Exchange Board of India (SEBI) may issue directions concerning the transfer or disposal of records, documents, or investments related to venture capital activities to protect investors. SEBI may also appoint a person to manage these records and determine the terms of such an appointment.