Penalties under SEBI Act.
||Nature of Contravention
||a.Failure to furnish document return or report to SEBI.
b. Failure to file return or furnish any information, books or other documents to SEBI.
c. Failure to maintain books and records.
1. Rs. 1,00,000
per day; or
||Failure by intermediary to enter into an agreement with his client.
||Failure to redress the investor grievances by any company or intermediary specified by SEBI in specified time.
||A. Carrying on any collective investment scheme without obtaining certificate of registration.
B. Person carrying out collective investment scheme as registered with SEBI makes any of the following default.
i. Failure to comply with the terms and conditions of certificate of registration.
ii. Failure to make application for listing its scheme.
iii. Failure to dispatch unit certificates of any scheme.
iv. Failure to refund the application monies paid by the investor.
v. Failure to invest the money collected by him.
||Where any asset management company of a mutual fund, fails to comply with any of the regulations providing for restrictions on the activities of the asset management companies.
|A registered Stock Broker:
fails to issue contract notes in the form and in the manner specified by the stock exchange.
|5 times the amount of contract note.
| 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.
1. Rs. 1 Lakh per day; or
2. 1 Cr.
| charges an amount of brokerage which is in excess of the brokerage specified in the regulations.
1. 1 Lakh or
2. 5 times excess brokerage.
||If any insider who,—
· either on his own behalf or on behalf of any other person, deals in securities of a body corporate listed on any stock exchange on the basis of any unpublished price sensitive information; or
· communicates any unpublished price sensitive information to any person, with or without his request for such information except as required in the ordinary course of business or under any law; or
· counsels, or procures for any other person to deal in any securities of any body-corporate on the basis of unpublished price sensitive information,
1. Rs. 25Cr; or
2. 3 times the profit derived from such transaction
|If any person fails to
· disclose the aggregate of his share holding in the body corporate before he acquires any shares of that body corporate;
· make a public announcement to acquire shares at a minimum price;
· make a public offer by sending letter of offer to the shareholders of the concerned company; or
· make payment of consideration to the shareholders who sold their shares pursuant to letter of offer
||If any person indulges in fraudulent and unfair trade practices relating to securities
||Whoever fails to comply with any provision of this Act, the rules or the regulations made or directions issued by the Board there under for which no separate penalty has been provided
||Maximum up to Rs. 1 Cr.
||If any person fails to pay the penalty imposed by the Adjudicating Officer or fails to comply with any of his directions or orders
||1 month < Imprisonment
< 10 yrs or Fine upto Rs. 25 Cr or both