Section 15H
Penalty for non-disclosure of acquisition of shares and takeovers.
The Securities and Exchange Board of India Act, 1992
About this Act
An Act to provide for the establishment of a Board to protect the interests of investors in securities and to promote the development of, and to regulate, the securities market and for matters connected therewith or incidental thereto.
1[15H. Penalty for non-disclosure of acquisition of shares and takeovers.-- If any person, who is
required under this Act or any rules or regulations made thereunder, fails to
(i) disclose the aggregate of his share holding in the body corporate before he acquires any shares of that body corporate; or
(ii) make a public announcement to acquire shares at a minimum price;
2[(iii) make a public offer by sending letter of offer to the shareholders of the concerned company; or
(iv) make payment of consideration to the shareholders who sold their shares pursuant to letter of offer],
he shall be liable to a penalty 3[which shall not be less than ten lakh rupees but which may extend to twenty-five crore rupees or three times the amount of profits made out of such failure, whichever is higher].
(i) disclose the aggregate of his share holding in the body corporate before he acquires any shares of that body corporate; or
(ii) make a public announcement to acquire shares at a minimum price;
2[(iii) make a public offer by sending letter of offer to the shareholders of the concerned company; or
(iv) make payment of consideration to the shareholders who sold their shares pursuant to letter of offer],
he shall be liable to a penalty 3[which shall not be less than ten lakh rupees but which may extend to twenty-five crore rupees or three times the amount of profits made out of such failure, whichever is higher].
Notes
1. Ins. by Act 9 of 1995, s. 9 (w.e.f. 25-1-1995). br
2. Ins. by Act 59 of 2002, s. 16 (w.e.f. 29-10-2002).
3. Subs. by Act 27 of 2014, s.13, for certain words (w.e.f.8-2-2014)br
3. Subs. by Act 27 of 2014, s.13, for certain words (w.e.f.8-2-2014)br