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, what is the minimum penalty for a person who indulges in fraudulent and unfair trade practices relating to securities?
The minimum penalty under Section 15HA is five lakh rupees. The section says the penalty shall not be less than five lakh rupees, and it may extend to twenty-five crore rupees or three times the profits made, whichever is higher.
- AFive lakh rupeesCorrect
- BOne lakh rupees
- CTwenty-five lakh rupees
- DTwenty-five crore rupees
Explanation
Section 15HA states the penalty shall not be less than five lakh rupees. Twenty-five crore rupees is the upper limit alternative, not the minimum.
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