(1) Where an existing central recordkeeping agency has failed to make an application or has been refused grant of certificate under these regulations, the central recordkeeping agency shall-
(a) forthwith cease to act as the central recordkeeping agency;
(b) transfer its activities to another entity which has been granted a registration certificate for carrying on such activity;
(c) transfer the regulated assets to the new central recordkeeping agency or any other entity as directed by the Authority;
(d) make provisions as regards liability incurred or assumed by the central recordkeeping agency;
(e) take such other action, within the time limit and in the manner, as may be required under these regulations or as may be directed by the Authority.
(2) While refusing grant of certificate under these regulations to a central recordkeeping agency, the Authority may impose such conditions as it deems fit for protection of subscribers’ interest and that of other intermediaries and such conditions shall be complied with.