CS Executive · Capital Market and Securities Laws · Buy-Back of Securities
Himalaya Cements Ltd, a listed company, defaults in maintaining the register of buy-back required by section 68. What is the penalty prescribed for the company under section 68(11)?
The company is punishable with a fine of not less than one lakh rupees, which may extend to three lakh rupees, and officers in default face the same fine. The earlier imprisonment of up to three years was removed by the 2020 amendment.
- AFine of not less than one lakh rupees, extending to three lakh rupeesCorrect
- BImprisonment up to three years
- CFine up to fifty thousand rupees only
- DFine of not less than five lakh rupees
Explanation
Section 68(11) punishes default in complying with the section with a fine of at least one lakh rupees, extendable to three lakh rupees, for the company and for each officer in default. The imprisonment term was omitted by the 2020 amendment.
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