(1) Without prejudice to any other action which may be taken by the Authority, the certificate of a registration granted to a pension fund is liable to be suspended, cancelled or withdrawn upon happening any of the following events, namely:-
(a) fails to comply with any of the terms and conditions subject to which a certificate of Registration has been granted to it;
(b) contravenes any of the provisions of the Act or the rules or the regulations made or guidelines, notifications, directions, instructions or circulars issued by the Authority thereunder;
(c) voluntarily applies to withdraw the certificate of registration granted by the Authority;
(d) a receiver, receiver and manager, administrator or similar person is appointed with respect to the assets and undertakings of the pension fund or the sponsor;
(e) the pension fund or the pension fund’s sponsors,-
(i) goes into liquidation (other than for the purposes of a reconstruction or amalgamation on terms previously approved in writing by the Authority);
(ii) ceases to carry on business;
(iii) breaches any provision of the terms and conditions of registration, or fails to observe or perform any representation, warranty or undertaking given by the pension fund or fails to correct such breach or failure within ten working days of receiving notice in writing from the Authority specifying such breach or failure;
(iv) conducts its business in a manner prejudicial to the interest of the National Pension System subscribers;
(v) does not co-operate in any enquiry conducted by the Authority;
(vi) indulges in manipulating the business under the National Pension System or any other pension schemes;
(vii) indulges in unfair trade practices.
(f) if pension fund or sponsor, in the opinion of the Authority, has engaged in corrupt or fraudulent practices in obtaining the certificate of registration or has been blacklisted by any Government authority or regulator;
(g) if pension fund or sponsor submits to the Authority a false statement or information which has a material effect on the rights, obligations or interests of the Authority or the subscribers;
(h) if pension fund or sponsor does not submit periodical returns as required by the Authority;
(i) if pension fund or sponsor fails to furnish any information as required by the Authority relating to its pension business;
(j) there is a change in the ownership, management or key personnel of the pension fund which in the opinion of the Authority adversely affects the interest of the subscribers;
(k) generates returns significantly and consistently below market or peer benchmarks;
(l) acts in a manner prejudicial to the interests of the subscribers;
(m) does not cooperate in an inquiry conducted by the Authority;
(n) commits any acts of defaults as mentioned under section 28 of the Act;
(o) any other reason which in the opinion of the Authority warrants for suspension, cancellation or withdrawal of the certificate of registration granted.
(2) The Authority may without prejudice to the powers under sub-regulation (1) instead of cancelling or suspending or withdrawing the certificate of registration, direct for varying or modifying the terms and conditions of the certificate of registration, as it may deem fit or pass any other order, as may be deemed beneficial in the interest of the subscribers, for reason to be recorded in writing.
(3) No order of cancellation, termination or suspension of registration shall be made unless the person concerned has been given a reasonable opportunity of being heard under an inquiry conducted as per the Regulations.