Section 15B
Penalty for failure by any person to enter into agreement with clients.
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[15B. Penalty for failure by any person to enter into agreement with clients.-- If any person, who
is registered as an intermediary and is required under this Act or any rules or regulations made thereunder
to enter into an agreement with his client, fails to enter into such agreement, he shall be liable to 2[a penalty 3[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.]]
Notes
1. Ins. by Act 9 of 1995, s. 9 (w.e.f. 25-1-1995)/b
2. Subs. by s. 10, ibid., for "a penalty not exceeding five lakh rupees for every such failure" (w.e.f. 29-10-2002).
3. Subs. by Act 27 of 2014, s. 7, for certain words (w.e.f.8-9-2014).
3. Subs. by Act 27 of 2014, s. 7, for certain words (w.e.f.8-9-2014).