Home Acts & Rules SEBI Act Securities and Exchange Board of India Act, 1992 Chapters List Chapter VIA PENALTIES AND ADJUDICATION This
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Section 15F - Penalty for default in case of stock brokers - Securities and Exchange Board of India Act, 1992Extract Penalty for default in case of stock brokers. 15F. 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 1 [a penalty which shall not be less than one lakh rupees but which may extend to] 7 [ 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 2 [a penalty 3 [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 4 [a penalty 5 [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 Substituted for the words a penalty not exceeding five times the amount by the Securities Laws (Amendment) Act, 2014, w.e.f. 08-09-2014. 2 Substituted for a penalty not exceeding five thousand rupees for each day during which such failure continues by the SEBI (Amendment) Act, 2002, w.e.f. 29-10-2002. 3 Substituted for the words of one lakh rupees for each day during which such failure continues or one crore rupees, whichever is less by the Securities Laws (Amendment) Act, 2014, w.e.f. 08-09-2014. 4 Substituted for a penalty not exceeding five thousand rupees‖ by the SEBI (Amendment) Act, 2002, w.e.f. 29-10-2002. 5 Substituted for the words of one lakh rupees or five times the amount of brokerage by the Securities Laws (Amendment) Act, 2014, w.e.f. 08-09-2014. 6. Substituted vide FINANCE ACT, 2018 w.e.f. 08-03-2019 before it was read as he sponsors or carries on any such collective investment scheme including mutual funds 7. Inserted vide FINANCE (NO. 2) ACT, 2019 w.e.f. 01-08-2019
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