Section 15H - Penalty for non-disclosure of acquisition of shares and takeovers - Securities and Exchange Board of India Act, 1992

Penalty for non-disclosure of acquisition of shares and takeovers. 15H. If any person, who is required under this Act or any rules or regulations made thereunder, fails to,- (i) disclose the aggregate of his shareholding 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; or 1 [(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 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 such failure, whichever is higher]. ********** 1 Inserted by the SEBI (Amendment) Act, 2002, w.e.f. 29-10-2002. 2 Substituted for the words twenty-five crore rupees or three times the amount of profits made out of such failure, whichever is higher by the Securities Laws (Amendment) Act, 2014, w.e.f. 08-09-2014.Prior to substitution, as substituted by the SEBI (Amendment) Act, 2002, w.e.f. 29-10-2002 it read as under: