Section 23D

Penalty for failure to segregate securities or moneys of client or clients.

The Securities Contracts (Regulation) Act, 1956

  • Act 42 of 1956
  • Ministry of Finance
  • Department of Economic Affairs
About this Act

An Act to prevent undesirable transactions in securities by regulating the business of dealing therein, by providing for certain other matters connected therewith.

All sections
    If any person, who is registered under section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992) as a stock broker or sub-broker, fails to segregate securities or moneys of the client or clients or uses the securities or moneys of a client or clients for self or for any other client, he shall be 1[liable to a penalty which shall not be less than one lakh rupees but which may extend to one crore rupees].

Notes

1. Subs. by s. 28, ibid., for "liable to a penalty not exceeding one crore rupees" (w.e.f. 8-9-2014).
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