law: Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
  4. Cancellation of
  
  certificate of registration.- 
  1.     
  
    The
  
  Reserve Bank may cancel a certificate of registration granted to a
  
  securitisation company or a reconstruction company, if such company-
  a.      ceases to carry on
  
  the business of securitisation or asset reconstruction; or
  b.     ceases to receive or
  
  hold any investment from a qualified institutional buyer; or
  c.      has failed to comply
  
  with any conditions subject to which the certificate of registration has been
  
  granted to it; or
  d.     at any time fails to
  
  fulfil any of the conditions referred to in clauses (a) to (g) of sub-section
  
  (3) of section 3; or
  e.      fails to-
                       
  
   i.        
  
    comply
  
  with any direction issued by the Reserve Bank under the provisions of this Act;
  
  or
                      
  
   ii.        
  
    maintain
  
  accounts in accordance with the requirements of any law or any direction or
  
  order issued by the Reserve Bank under the provisions of this Act; or
                     
  
   iii.        
  
    submit
  
  or offer for inspection its books of account or other relevant documents when
  
  so demanded by the Reserve Bank; or
                     
  
   iv.        
  
    obtain
  
  prior approval of the Reserve Bank required under sub-section (6) of section 3:
  Provided that  before cancelling a
  
  certificate of registration on the ground that the securitisation company or
  
  reconstruction company has failed to comply with the provisions of clause (c)
  
  or has failed to fulfil any of the conditions referred to in clause (d) or
  
  sub-clause (iv) of clause (e), the Reserve Bank, unless it is of the opinion
  
  that the delay in cancelling the certificate of registration granted under
  
  sub-section (4) of section 3 shall be prejudicial to the public interest or the
  
  interests of the investors or the securitisation company or the reconstruction
  
  company, shall give an opportunity to such company on such terms as the Reserve
  
  Bank may specify for taking necessary steps to comply with such provisions or fulfilment
  
  of such conditions.
  1.     
  
  
  2.     
  
    A
  
  securitisation company or reconstruction company aggrieved by the order of
  
  rejection of application for registration or cancellation of certificate of
  
  registration may prefer an appeal, within a period of thirty days from the date
  
  on which such order of rejection or cancellation is communicated to it, to the
  
  Central Government:
  Provided that  before rejecting an
  
  appeal such company shall be given a reasonable opportunity of being heard.
  3.     
  
    A
  
  securitisation company or reconstruction company, which is holding investments
  
  of qualified institutional buyers and whose application for grant of
  
  certificate of registration has been rejected or certificate of registration
  
  has been cancelled shall, notwithstanding such rejection or cancellation, be
  
  deemed to be a securitisation company or reconstruction company until it repays
  
  the entire investments held by it (together with interest, if any) within such
  
  period as the Reserve Bank may direct.