CS Executive · Capital Market and Securities Laws · Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market
Rohan, a trader in Pune, is found by SEBI to have indulged in fraudulent and unfair trade practices relating to securities. Under the SEBI Act, 1992, what is the minimum penalty that can be imposed on him under Section 15HA?
The minimum penalty under Section 15HA of the SEBI Act, 1992 for fraudulent and unfair trade practices relating to securities is five lakh rupees. The statute fixes this floor, while the maximum can go up to twenty-five crore rupees or three times the profits, whichever is higher.
- ARupees one lakh
- BRupees five lakhCorrect
- CRupees twenty-five lakh
- DRupees five crore
Explanation
Section 15HA says the penalty shall not be less than five lakh rupees. The upper limit is twenty-five crore rupees or three times the profits, whichever is higher. Rupees twenty-five lakh or five crore confuse the floor with other amounts and are not the statutory minimum.
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