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 penalty prescribed?
The minimum penalty under Section 15HA is five lakh rupees. The section says the penalty shall not be less than five lakh rupees for fraudulent and unfair trade practices relating to securities. The ten lakh floor belongs to Section 15H on takeover non-disclosures.
- AFive lakh rupeesCorrect
- BTen lakh rupees
- CTwenty-five lakh rupees
- DOne crore rupees
Explanation
Section 15HA states the penalty shall not be less than five lakh rupees. Ten lakh rupees is the floor under Section 15H (non-disclosure of acquisition and takeover obligations), so it is a wrong section's figure.
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