Securities Contracts (Regulation) Act,1956
Act No : 42
Section :
Penalties.
23.Penalties. (1) Any person who-- (a) without reasonable excuse (the burden of proving which shall be on him) fails to comply with any requisition made under sub-section (4) of section 6 ; or (b) enters into any contract in contravention of any of the provisions contained in section 13 or section 16 ; or (c)contravenes the provisions contained in section 17, or section 19 ; or (e) owns or keeps a place other than that of a recognised stock ex- change which is used for the purpose of entering 141 into or performing any contracts in contravention of any of the provisions of this Act and knowingly permits such place to be used for such purposes ; or (f)manages, controls, or assists in keeping any place other than that of a recognised stock exchange which is used for the purpose of entering into or performing any contracts in contravention of any of the provisions of this Act or at which contracts are recorded or adjusted or rights or liabilities arising out of contracts are adjusted, regulated or enforced in any manner whatsoever; or (g)not being a member of a recognised stock exchange or his agent authorized as such under the rules or bye-laws of such stock exchange or not being a dealer in securities licensed under section 17 wilfully represents to or induces any person to believe that contracts can be entered into or performed under this Act through him; or (h)not being a member of a recognised stock exchange or his agent authorized as such under the rules or bye-laws of such stock exchange or not being a dealer in securities licensed under section 17, canvasses, advertises or touts in any manner either for himself or on behalf of any other persons for any business connected with contracts in contravention of any of the provisions of this Act ; or (i)joins, gathers or assists in gathering at any place other than the place of business specified in the bye- laws of a recognised stock exchange any person or persons for making bids or offers or for entering into or performing any contracts in contravention of any of the provisions of this Act ; shall, on conviction, be punishable with imprisonment for a term which may extend to one year, or with fine, or with both. (2)Any person who enters into any contract in contravention of the provisions contained in section 15 or who fails to comply with the orders of the Securities and Exchange Board of India under Section 21 or the Central Government 22 shall, on conviction, be punishable with fine which may extend to one thousand rupees.
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