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CS Executive · Capital Market and Securities Laws · Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market

Under Section 15HA of the SEBI Act, 1992, a person who indulges in fraudulent and unfair trade practices relating to securities is liable to a penalty. What is the minimum amount of that penalty?

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 provision fixes this floor and then allows a maximum of twenty-five crore rupees or three times the profits made, whichever is higher.

  1. ARupees one lakh
  2. BRupees five lakhCorrect
  3. CRupees twenty-five lakh
  4. DRupees one crore

Explanation

Section 15HA states the penalty shall not be less than five lakh rupees. The upper limit is separate: twenty-five crore rupees or three times the profits, whichever is higher. Options with one lakh, twenty-five lakh or one crore do not match the text.

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