Section 19B in The Depositories Act, 1996

Title: Penalty for failure to enter into an agreement

Description: If a depository or participant or any issuer or its agent or any person, who is registered as an intermediary under the provisions of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), and is required under this Act or any rules or regulations, made thereunder, to enter into an agreement, fails to enter into such agreement, such depository or participant or issuer or its agent or intermediary shall be liable to a penalty 1[which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees] for every such failure. 1. Subs. by s. 43, ibid., for certain words (w.e.f. 8-9-2014).

Title: Penalty for failure to redress investors‟ grievances

Description: If any depository or participant or any issuer or its agent or any person, who is registered as an intermediary under the provisions of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), after having been called upon by the Board in writing, to redress the grievances of the investors, fails to redress such grievances within the time specified by the Board, such depository or participant or issuer or its agents or intermediary shall be liable to a penalty 1[which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees]. 1. Subs. by s. 44, ibid., for certain words (w.e.f. 8-9-2014).

Title: Penalty for delay in dematerialisation or issue of certificate of securities

Description: If any issuer or its agent or any person, who is registered as an intermediary under the provisions of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), fails to dematerialise or issue the certificate of securities on opting out of a depository by the investors, within the time specified under this Act or regulations or bye-laws made thereunder or abets in delaying the process of dematerialisation or issue the certificate of securities on opting out of a depository of securities, such issuer or its agent or intermediary shall be liable to a penalty 1[which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees]. 1. Subs. by s. 45, ibid., for certain words (w.e.f. 8-9-2014).

Title: Penalty for failure to reconcile records

Description: If a depository or participant or any issuer or its agent or any person, who is registered as an intermediary under the provisions of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), fails to reconcile the records of dematerialised securities with all the securities issued by the issuer as specified in the regulations, such depository or participant or issuer or its agent or intermediary shall be liable to a penalty 1[which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees]. 1. Subs. by s. 46, ibid., for certain words (w.e.f. 8-9-2014).

Title: Penalty for failure to comply with directions issued by Board under section 19 of the Act

Description: If any person fails to comply with the directions issued by the Board under section 19, within the time specified by it, he shall be liable to a penalty 1[which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees]. 1. Subs. by s. 47, ibid., for certain words (w.e.f. 8-9-2014).

CHAPTER 4 ENQUIRY AND INSPECTION