Skip to content

CS Executive · Capital Market and Securities Laws · Collective Investment Schemes

Meera Funds, a fund house, is a registered collective investment scheme. It fails to refund application monies to investors within the period specified in the regulations, and the failure continues for many days. What penalty does Section 15D(e) of the SEBI Act provide?

Under Section 15D(e), the penalty is not less than one lakh rupees, extending to one lakh rupees for each day the failure continues, subject to a maximum of one crore rupees. Older amounts such as ten lakh or five thousand per day were substituted.

  1. AA penalty of not less than one lakh rupees, extending to one lakh rupees for each day of failure, subject to a maximum of one crore rupeesCorrect
  2. BA fixed penalty of ten lakh rupees only
  3. CA penalty of five thousand rupees per day without any ceiling
  4. DImprisonment up to ten years with no monetary penalty

Explanation

Section 15D(e) covers failure to refund application monies within the specified period. The penalty is not less than one lakh rupees but may extend to one lakh rupees for each day the failure continues, with a cap of one crore rupees. The ten lakh and five thousand figures are earlier, substituted amounts.

Did you get it right without looking?

One question tells you little. A timed set on Collective Investment Schemes shows your real accuracy, how long you take and where you lose marks.

Practise Collective Investment SchemesFree diagnostic mock

More Collective Investment Schemes questions