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CS Executive · Capital Market and Securities Laws · Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market

A firm failed to make a public announcement to acquire shares at a minimum price as required under SEBI regulations, and separately a dealer manipulated prices through a fraudulent scheme. Which pairing of provision and minimum penalty is correct?

The firm's failure to make a public announcement falls under Section 15H, minimum ten lakh rupees, while the dealer's fraudulent scheme falls under Section 15HA, minimum five lakh rupees. Both sections share the same ceiling formula, but their minimum penalties differ.

  1. AFirm: Section 15H, minimum ten lakh rupees; dealer: Section 15HA, minimum five lakh rupeesCorrect
  2. BFirm: Section 15H, minimum five lakh rupees; dealer: Section 15HA, minimum ten lakh rupees
  3. CFirm: Section 15HA, minimum five lakh rupees; dealer: Section 15H, minimum ten lakh rupees
  4. DFirm: Section 15HA, minimum ten lakh rupees; dealer: Section 15H, minimum five lakh rupees

Explanation

Failure to make a public announcement to acquire shares at a minimum price falls under Section 15H, with a floor of ten lakh rupees. Fraudulent and unfair trade practices fall under Section 15HA, with a floor of five lakh rupees. The other options swap the sections or the amounts.

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