Penal Provisions :

If, a registered collective investment management company violates certain provisions of the regulations, then action in terms of suspension/ cancellation of certificate may be initiated against the entity. Further, SEBI may, in the interests of the securities market and the investors, initiate criminal prosecution under Section 24 of the SEBI Act, apart from passing of directions such as

(a) requiring the person concerned not to collect any money from investor or to launch any scheme;

(b) prohibiting the person concerned from disposing of any of the properties of the scheme acquired in violation of the Regulations;

(c) requiring the person concerned to dispose off the assets of the scheme in a manner as may be specified in the directions;

(d) requiring the person concerned to refund any money or the assets to the concerned investors along with the requisite interest or otherwise, collected under the scheme;

(e) prohibiting the person concerned from operating in the capital market or from accessing the capital market for a specified period.