CS Executive · Capital Market and Securities Laws · Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market
Meera, a trader, made profits of Rs 15 crore through a fraudulent and unfair trade practice in securities. What is the upper limit of penalty under Section 15HA in her case?
The upper limit is Rs 45 crore. Section 15HA permits a penalty up to twenty-five crore rupees or three times the profits, whichever is higher. Three times Rs 15 crore equals Rs 45 crore, which exceeds Rs 25 crore, so the profit-based figure applies.
- ARs 15 crore
- BRs 25 crore
- CRs 40 crore
- DRs 45 croreCorrect
Explanation
Three times the profit is 3 x Rs 15 crore = Rs 45 crore. This is higher than Rs 25 crore, so the upper limit is Rs 45 crore. Rs 25 crore would be right only if the profit multiple were lower than that figure.
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