Regulation 102 — Revocation of license

(1) In addition to the grounds provided under sub -section (5)
of section 42 for revocation of the license, where the promoters, directors or chief executive officer
of the comp any licensed under section 42 of the Act and registered under these regulations or
company law do not comply with any of the conditions imposed by these regulations or are
disqualified under regulation 101 at any time or have violated any provision of the se regulations or
of the Act, the Commission may, after giving a notice in writing and an opportunity of being heard,
revoke the license.
(2) Where the Commission revokes the license granted under section 42 of the Act, it shall
send the revocation order t o the company at its registered office address and place this information
on the website of the Commission.
(3) Upon revocation of the license by the Commission, the company shall cease to enjoy
the exemptions and privileges conferred upon it by virtue of license granted under section 42 of the
Act.
(4) The company shall immediately prepare and arrange audit of its financial statements
for the period starting from the day following the date of last audited financial statements till date of
revocation of li cense in case the latest available audited financial statements are older than three
months and the auditor shall submit its report within fifteen days of its engagement for the purpose
or such other extended period as may be allowed by the Commission on the application of the auditor.
(5) Subject to the requirements of section 43 of the Act, the board of directors of the
company shall within a period of ten days of revocation of license shortlist and approve the name of
transferee company which has provided concurrence to receive the assets of the company.
(6) Subsequent to the approval of the board, the chief executive officer shall within ninety
days from the revocation of license or such extended time period as may be allowed by the
commission transfer the assets of the company after satisfaction of all debts and liabilities by entering
into agreement with approved transferee company and such agreement shall set out the roles and
responsibilities of transferor and transferee companies and mechanism for tr ansfer of assets along
with details of assets to be transferred.
(7) Within the period provided under sub -section (2) of section 43 of the Act, the board
shall, file the report subsequent to transfer of assets upon revocation of license , duly signed by the
authorized officer, to the registrar along with following documents, -
(i) copy of minutes of board meeting in which transferee company was short listed;
(ii) copy of letter of concurrence from the transferee company;
(iii) copy of agreement for transfer of assets;
(iv) latest audited financial statements along with auditors’ report exhibiting complete
details of total assets, total debts and liabilities along with net assets to be transferred
to another company licensed under section 42 of the Act;

(v) certificate confirming completion of transfer of assets issued by the auditor of
transferee company; and
(vi) affidavit by the chief executive officer stating that all requirements of the Act and these
regulations have been fully complied regarding transfer of assets to another section 42
company.