Section 15F in The Securities and Exchange Board of India Act, 1992

Title: Penalty for default in case of stock brokers

Description: 1[15F. Penalty for default in case of stock brokers---- If any person, who is registered as a stock broker under this Act,--- (a) fails to issue contract notes in the form and manner specified by the stock exchange of which such broker is a member, he shall be liable to 2[a penalty which shall not be less than one lakh rupees but which may extend to 3[one crore rupees]] for which the contract note was required to be issued by that broker; (b) fails to deliver any security or fails to make payment of the amount due to the investor in the manner within the period specified in the regulations, he shall be liable to 4[a penalty 5[which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which 6[such failure continues] subject to a maximum of one crore rupees]]; (c) charges an amount of brokerage which is in excess of the brokerage specified in the regulations, he shall be liable to 7[a penalty 8[[which shall not be less than one lakh rupees but which may extend to five times the amount of brokerage]] charged in excess of the specified brokerage, whichever is higher.] 1. Ins. by Act 9 of 1995, s. 9 (w.e.f. 25-1-1995). Br 2. Subs. by Act 27 of 2014, s. 11, for "a penalty not exceeding five times the amount" (w.e.f.8-9-2014). 3. Ins. by Act 23 of 2019, s. 184 (w.e.f. 20-1-2020). 4. Subs. by Act 59 of 2002, s. 14, for "a penalty not exceeding five thousand rupees for each day during which such failure continues" (w.e.f. 29-10-2002). 5. Subs. by Act 27 of 2014, s. 11, for certain words (w.e.f.8-9-2014). 6. Subs. by Act 13 of 2018, s. 183, for "he sponsors or carries on any such collective investment scheme including mutual fund" (w.e.f. 8-3-2019).. 7. Subs. by Act 59 of 2002, s. 14, for "a penalty not exceeding five thousand rupees" (w.e.f. 29-10-2002). 8. Subs. by Act 27 of 2014, s. 11, for "of one lakh rupees or five times the amount of brokerage" (w.e.f.8-9-2014).

Title: Penalty for insider trading

Description: 1[15G. Penalty for insider trading.-- If any insider who, (i) either on his own behalf or on behalf of any other person, deals in securities of a body corporate listed on any stock exchange on the basis of any unpublished price sensitive information; or (ii) communicates any unpublished price sensitive information to any person, with or without his request for such information except as required in the ordinary course of business or under any law; or (iii) counsels, or procures for any other person to deal in any securities of any body corporate on the basis of unpublished price sensitive information, shall be liable to a penalty 2[which shall not be less than ten lakh rupees but which may extend to twenty-five crore rupees or three times the amount of profits made out of insider trading, whichever is higher].] 1. Ins. by Act 9 of 1995, s. 9 (w.e.f. 25-1-1995). Br 2. Subs. by Act 27 of 2014, s.12, for certain words (w.e.f.8-2-2014).

Title: Penalty for non-disclosure of acquisition of shares and takeovers

Description: 1[15H. Penalty for non-disclosure of acquisition of shares and takeovers.-- If any person, who is required under this Act or any rules or regulations made thereunder, fails to (i) disclose the aggregate of his share holding in the body corporate before he acquires any shares of that body corporate; or (ii) make a public announcement to acquire shares at a minimum price; 2[(iii) make a public offer by sending letter of offer to the shareholders of the concerned company; or (iv) make payment of consideration to the shareholders who sold their shares pursuant to letter of offer], he shall be liable to a penalty 3[which shall not be less than ten lakh rupees but which may extend to twenty-five crore rupees or three times the amount of profits made out of such failure, whichever is higher]. 1. Ins. by Act 9 of 1995, s. 9 (w.e.f. 25-1-1995). Br 2. Ins. by Act 59 of 2002, s. 16 (w.e.f. 29-10-2002). 3. Subs. by Act 27 of 2014, s.13, for certain words (w.e.f.8-2-2014)br

Title: Penalty for fraudulent and unfair trade practices

Description: 1[15HA. Penalty for fraudulent and unfair trade practices.--If any person indulges in fraudulent and unfair trade practices relating to securities, he shall be liable to a penalty 2[which shall not be less than five lakh rupees but which may extend to twenty-five crore rupees or three times the amount of profits made out of such practices, whichever is higher].] 1. Ins. by Act 59 of 2002, s. 17 (w.e.f. 29-10-2002). 2. Subs. by Act 27 of 2014, s. 14, for certain words (w.e.f. 8-2-2014). Br

Title: Penalty for alteration, destruction, etc., of records and failure to protect the electronic database of Board

Description: 1[15HAA. Penalty for alteration, destruction, etc., of records and failure to protect the electronic database of Board.--Any person, who— (a) knowingly alters, destroys, mutilates, conceals, falsifies, or makes a false entry in any information, record, document (including electronic records), which is required under this Act or any rules or regulations made there under, so as to impede, obstruct, or influence the investigation, inquiry, audit, inspection or proper administration of any matter within the jurisdiction of the Board. Explanation.--For the purposes of this clause, a person shall be deemed to have altered, concealed or destroyed such information, record or document, in case he knowingly fails to immediately report the matter to the Board or fails to preserve the same till such information continues to be relevant to any investigation, inquiry, audit, inspection or proceeding, which may be initiated by the Board and conclusion thereof; (b) without being authorised to do so, access or tries to access, or denies of access or modifies access parameters, to the regulatory data in the database; (c) without being authorised to do so, downloads, extracts, copies, or reproduces in any form the regulatory data maintained in the system database; (d) knowingly introduces any computer virus or other computer contaminant into the system database and brings out a trading halt; (e) without authorisation disrupts the functioning of system database; (f) knowingly damages, destroys, deletes, alters, diminishes in value or utility, or affects by any means, the regulatory data in the system database; or (g) knowingly provides any assistance to or causes any other person to do any of the acts specified in clauses (a) to (f), shall be liable to a penalty which shall not be less than one lakh rupees but which may extend to ten crore rupees or three times the amount of profits made out of such act, whichever is higher. Explanation.--In this section, the expressions "computer contaminant", "computer virus" and "damage" shall have the meanings respectively assigned to them under section 43 of the Information Technology Act, 2000 (21 of 2000).]1. Ins. by Act 23 of 2019, s. 185 (w.e.f. 20-1-2019).

CHAPTER 6A PENALTIES AND ADJUDICATION