Act Number: 42

Act Name: The Securities Contracts (Regulation) Act, 1956

Year: 1956

Enactment Date: 1956-09-04

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

Ministry: Ministry of Finance

Department: Department of Economic Affairs

Section 23B: Penalty for failure by any person to enter into an agreement with clients.
    If any person, who is required under this Act or any bye-laws of a recognised stock exchange made thereunder, to enter into an agreement with his client, fails to enter into such an agreement, he shall be liable to a penalty 1[which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees] for every such failure.
Notes:
1. Subs. by Act 27 of 2014, s. 26, for "of one lakh rupees for each day during which such failure continues or one crore rupees, whichever is less" (w.e.f. 8-9-2014).
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