Section 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 1[section 17 or section 17A], or section 19; or
2[(d) enters into any contract in derivative in contravention of section 18A or the rules made
under section 30.]
(e) owns or keeps a 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 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 authorised 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 authorised 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;3[shall, without prejudice to any award of penalty by the Adjudicating Officer 4[or the Securities and
Exchange Board of India] under this Act, on conviction, be punishable with imprisonment for a term
which may extend to ten years or with fine, which may extend to twenty-five crore rupees or with both]
(2) Any person who enters into any contract in contravention of the provisions contained in section 15
5[or who fails to comply with the provisions of 6[section 21 or section 21A] or with the orders of] or who
or section 22 7[or with the orders of the Securities Appellate Tribunal] shall, on conviction, be punishable
with fine which may extend to one thousand rupees.
Notes:
1. Subs. by Act 27 of 2007, s. 4, for "section 17" (w.e.f. 28-5-2007).
2. Ins. by Act 31 of 1999, s. 6 (w.e.f. 22-2-2000).
3. Subs. by Act 1 of 2005, s. 21, for certain words (w.e.f. 12-10-2004).
4. Ins. by Act 13 of 2018, s. 148 (w.e.f. 8-3-2019).
5. Subs. by Act 9 of 1995, s. 24, for "or who fails to comply with the orders of the Securities and Exchange Board of India under
section 21" (w.e.f. 25-1-1995).
6. Subs. by Act 1 of 2005, s. 10, for "section 21" (w.e.f. 12-10-2004)
7. Ins. by Act 32 of 1999, s. 6 (w.e.f. 16-10-1999).