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

Which conduct is the direct subject of the penalty in Section 15HA of the SEBI Act, 1992, as distinct from Section 15H?

Section 15HA penalises indulging in fraudulent and unfair trade practices relating to securities. The takeover-related failures, such as not making a public announcement, not disclosing shareholding or not paying consideration, fall under Section 15H instead.

  1. AFailure to make a public announcement to acquire shares at a minimum price
  2. BFailure to pay consideration to shareholders who sold shares under a letter of offer
  3. CIndulging in fraudulent and unfair trade practices relating to securitiesCorrect
  4. DFailure to disclose aggregate shareholding before acquiring shares

Explanation

Section 15HA penalises any person who indulges in fraudulent and unfair trade practices relating to securities. The other three options are takeover-related failures listed in Section 15H.

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