Section 19E in The Depositories Act, 1996

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).

Title: Penalty for conduct business in a fair manner

Description: 1[19FA. Penalty for failure to conduct business in a fair manner.--Where a depository fails to conduct its business with its participants or any issuer or its agent or any person associated with the securities markets in a fair manner in accordance with the rules, regulations made by the Board or directions issued by the Board under this Act, it shall be liable to penalty which shall not be less than five crore rupees but which may extend to twenty-five crore rupees or three times the amount of gains made out of such failure, whichever is higher.] 1. Ins. by Act 13 of 2018, s. 194 (w.e.f. 8-3-2019).

Title: Penalty for contravention where no separate penalty has been provided

Description: Whoever fails to comply with any provision of this Act, the rules or the regulations or bye-laws made or directions issued by the Board thereunder for which no separate penalty has been provided, shall be 1[liable to a penalty which shall not be less than one lakh rupees but which may extend to one crore rupees]. 1. Subs. by Act 27 of 2014, s. 48, for certain words (w.e.f. 28-3-2014).

Title: Power to adjudicate

Description: (1) For the purpose of adjudging under sections 19A, 19B, 19C, 19D, 19E, 1[19F, 19FA and 19G, the Board may appoint any officer not below the rank of a Division Chief of the Securities and Exchange Board of India to be an adjudicating officer for holding an inquiry in the prescribed manner after giving any person concerned a reasonable opportunity of being heard for the purpose of imposing any penalty. (2) While holding an inquiry, the adjudicating officer shall have power to summon and enforce the attendance of any person acquainted with the facts and circumstances of the case to give evidence or to produce any document, which in the opinion of the adjudicating officer, may be useful for or relevant to the subject-matter of the inquiry and if, on such inquiry, he is satisfied that the person has failed to comply with the provisions of any of the sections specified in sub-section (1), he may impose such penalty as he thinks fit in accordance with the provisions of any of those sections. 2[(3) The Board may call for and examine the record of any proceedings under this section and if it considers that the order passed by the adjudicating officer is erroneous to the extent it is not in the interests of the securities market, it may, after making or causing to be made such inquiry as it deems necessary, pass an order enhancing the quantum of penalty, if the circumstances of the case so justify: Provided that no such order shall be passed unless the person concerned has been given an opportunity of being heard in the matter: Provided further that nothing contained in this sub-section shall be applicable after an expiry of a period of three months from the date of the order passed by the adjudicating officer or disposal of the appeal under section 23A, whichever is earlier.] 1. Subs. by Act 13 of 2018, s. 195, for "19F and 19G, the Board shall" (w.e.f. 8-3-2019). 2. Ins. by Act 27 of 2014, s. 49 (w.e.f. 18-7-2013).

CHAPTER 4 ENQUIRY AND INSPECTION