(1) An applicant referred to in sub regulation (1) of regulation 3 whose application for the grant of a certificate has been rejected under sub-regulation (1) of regulation 10 shall not undertake any activity as Self Regulatory Organization.
(2) A Self Regulatory Organization referred to in regulation 9 whose application for the renewal of certificate has been rejected by the Board shall on and from the date of the receiptof the communication from the Board under sub regulation (2) of regulation 10 cease to carry on any activity as Self Regulatory Organization.
(3) If the Board is satisfied that it is in the interests of investors to do so, it may permit the Self Regulatory Organization referred to under sub-regulation (2) to complete the functions or obligations already initiated or undertaken by it during the pendency of the application or during the period of validity of the certificate.
(4) The Board may in order to protect the interests of investors, issue directions with regard to the transfer of records, documents or reports relating to the functions of the Self Regulatory Organization, whose application for the grant or renewal of a certificate has been rejected.
(5) The Board may, in order to protect the interests of investors, appoint any person to take charge of the records, documents or reports relating to the organization referred to in subregulation (4) and for this purpose also determine the terms and conditions of such appointment.
CHAPTER III COMPOSITION AND FUNCTIONS OF SELF REGULATORY ORGANIZATIONS Composition of Board of Directors.