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

SEBI imposes a penalty of fifty lakh rupees on a collective investment scheme under Section 15D. Where must the sum realised by way of this penalty be credited, according to the SEBI Act, 1992?

Penalties realised under the SEBI Act, including those under Section 15D, are credited to the Consolidated Fund of India as provided in Section 15JA. They are neither kept by SEBI nor paid directly to the investors.

  1. ATo the Consolidated Fund of IndiaCorrect
  2. BTo the SEBI general fund
  3. CTo the Investor Protection Fund of the stock exchange
  4. DTo the affected investors directly

Explanation

Section 15JA 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 paid to investors.

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