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CS Executive · Capital Market and Securities Laws · Securities Contracts (Regulation) Act, 1956

A recognised stock exchange's bye-laws provide that a member who contravenes a specified bye-law may be punished. Which of the following is a punishment the bye-laws may provide for under Section 9(3)(b) of the Act?

Bye-laws may provide for suspension from membership for a specified period. Section 9(3)(b) allows fine, expulsion, suspension, or a like penalty not involving payment of money. Imprisonment, property attachment or public-office disqualification are not punishments the exchange can prescribe through its bye-laws.

  1. AImprisonment of the member for up to one year
  2. BSuspension from membership for a specified periodCorrect
  3. CAttachment of the member's personal property by the exchange
  4. DDisqualification of the member from holding any public office

Explanation

Section 9(3)(b) lists fine, expulsion from membership, suspension from membership for a specified period, and any other penalty of a like nature not involving payment of money. Imprisonment, attachment and public-office disqualification are not in this list.

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