Skip to content

CS Executive · Capital Market and Securities Laws · Listing Obligations and Disclosure Requirements

SEBI imposes a monetary penalty on a listed company under the SEBI Act, 1992. Where must the sums realised by way of such penalties be credited?

Penalties realised under the SEBI Act, 1992 are credited to the Consolidated Fund of India, as provided in Section 15JA. SEBI does not keep them in its own funds, and they are not passed to the stock exchange or the company.

  1. ATo the Investor Protection Fund of the stock exchange
  2. BTo the general reserves of SEBI
  3. CTo the Consolidated Fund of IndiaCorrect
  4. DTo the Investor Education fund of the company concerned

Explanation

Section 15JA of the SEBI Act states that all sums realised by way of penalties under the Act shall be credited to the Consolidated Fund of India. They are not retained by SEBI or the exchange.

Did you get it right without looking?

One question tells you little. A timed set on Listing Obligations and Disclosure Requirements shows your real accuracy, how long you take and where you lose marks.

Practise Listing Obligations and Disclosure RequirementsFree diagnostic mock

More Listing Obligations and Disclosure Requirements questions