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CS Executive · Capital Market and Securities Laws · Mutual Funds

A penalty is realised from a mutual fund under the SEBI Act, 1992 for a default covered by Section 15D. Where must the sum realised by way of penalty be credited?

Under Section 15JA of the SEBI Act, 1992, all sums realised by way of penalties under the Act, including those for mutual fund defaults, are credited to the Consolidated Fund of India, not to SEBI, investors or the sponsor.

  1. ATo the Consolidated Fund of IndiaCorrect
  2. BTo the SEBI general fund for investor education only
  3. CTo the account of the affected unitholders
  4. DTo the sponsor's trust account

Explanation

Section 15JA provides that all sums realised by way of penalties under the Act are credited to the Consolidated Fund of India. They are not paid to SEBI's own fund, to investors, or to the fund sponsor.

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