Lawgist15FPenalty for default in case of stock brokers
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 which6[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.]
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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).
- 15A Penalty for failure to furnish information, return, etc
- 15B Penalty for failure by any person to enter into agreement with clients
- 15C Penalty for failure to redress investors‟ grievances
- 15D Penalty for certain defaults in case of mutual funds
- 15E Penalty for failure to observe rules and regulations by an asset management company
- 15EA Penalty for default in case of alternative investment funds, infrastructure investment trusts and real estate investment trusts
- 15EB Penalty for default in case of investment adviser and research analyst
- 15F Penalty for default in case of stock brokers
- 15G Penalty for insider trading
- 15H Penalty for non-disclosure of acquisition of shares and takeovers
- 15HA Penalty for fraudulent and unfair trade practices
- 15HAA Penalty for alteration, destruction, etc., of records and failure to protect the electronic database of Board
- 15HB Penalty for contravention where no separate penalty has been provided
- 15-I Power to adjudicate
- 15J Factors to be taken into account while adjudging quantum of penalty
- 15JA Crediting sums realised by way of penalties to Consolidated Fund of India
- 15JB Settlement of administrative and civil proceedings
