As per Regulations 8 of Intermediary Regulations
(1) The Commission may, after providing an opportuning of hearing, cancel the registration of an intermediary through an Order in writing if, –
(i) the intermediary has provided false, incomplete or misleading documents or representation without authorization;
(ii) the intermediary is found guilty of negligence, default, breach of duty or breach of trust;
(iii) the intermediary fails to commence activity within twelve months of grant of certificate of registration;
(iv) the intermediary fails to apply for registration as required in regulation 9 or renewal of registration within time as specified in sub-regulation (1) of regulation 6; or
(v) any reasonable ground as deemed appropriate by Commission.
(2) The intermediary shall be personally held responsible for the liabilities and obligations arising out of any such act leading to cancellation of registration and shall not be eligible for reregistration for a period of up to five years.
(3) Where proceedings for cancellation of registration have been initiated, the intermediary shall not be permitted to submit any document on behalf of the company or promoters of a proposed company or foreign company, as the case may be, and they shall make alternate arrangement in this regard.