Section 74: Board may revoke permission

1) The Board may revoke the permission granted under Section 72 to operate a collective investment scheme on any of the following circumstances:-

(a) In the event of failure to fulfil the necessary terms and conditions of operation in a satisfactory manner,

(b) In the event that it is not appropriate to continue such a scheme upon considering the interest of participants,

(c) In the event of a violation of this Act or the Rules or Bye-laws framed under this Act or provision of any false details to the Board in respect of a scheme by the scheme manager and the depository.

2) In revoking the permission pursuant to clause (b) of sub-section (1), the Board may hold necessary inquiries with the manager, depository, and director related to such scheme or relevant employee.

3) In revoking the permission given to operate a scheme pursuant to sub-section (1), the Board may, having regard to the investment and return of investors, get that scheme to be operated by any other scheme manager or get accounts settled or cleared by refunding the investment and return of the investors of such scheme.

4) The procedures required to be followed in closing the operation of the scheme and settling or clearing the accounts by the order of the Board shall be as prescribed.