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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, the penalty for fraudulent and unfair trade practices relating to securities is described as one that:

Section 15HA provides a penalty of not less than five lakh rupees, extendable to twenty-five crore rupees or three times the profits made from such practices, whichever is higher. It is therefore a range with a floor and a ceiling, not a fixed amount.

  1. Ashall not be less than five lakh rupees but may extend to twenty-five crore rupees or three times the profits, whichever is higherCorrect
  2. Bshall not be less than twenty-five lakh rupees but may extend to five crore rupees
  3. Cshall not exceed five lakh rupees or the profits made, whichever is lower
  4. Dshall be exactly three times the profits made out of such practices

Explanation

The section, as amended in 2014, fixes a floor of five lakh rupees and a ceiling of twenty-five crore rupees or three times the profits, whichever is higher. The other options distort the amounts, reverse the floor and ceiling, or make the penalty a fixed multiple.

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