Refusal to renew recognition: regulatory non compliance and governance failures lead to derecognition and protective directions. SEBI refused to renew recognition of Magadh Stock Exchange Limited due to repeated regulatory non compliance, governance and financial deficiencies, and operation contrary to SEBI directives. Inspections revealed absence of a full time Executive Director, pervasive shortfalls and improperly composed Base Minimum Capital, failure to create and segregate an Investor Protection Fund as a Trust, non inspection of members' books, non recovery of dues, commencement of trading without an approved Settlement Guarantee/Trade Guarantee Fund, delayed corporatisation and demutualization, inadequate clearing and settlement arrangements and insufficient manpower and surveillance. SEBI directed transfer of investor funds to the SEBI Investor Protection and Education Fund, repayment of outstanding refundable support, protection of pending claims, de registration consequences for members, and restraint on asset transfers.