Section 15F:
Penalty for default in case of stock brokers.
1[15F. Penalty for default in case of stock brokers---- If any person, who is registered as a stock
broker under this Act,---
(a) fails to issue contract notes in the form and manner specified by the stock exchange of which
such broker is a member, he shall be liable to 2[a penalty which shall not be less than one lakh rupees
but which may extend to 3[one crore rupees]] for which the contract note was required to be issued by that broker;
(b) fails to deliver any security or fails to make payment of the amount due to the investor in the
manner within the period specified in the regulations, he shall be liable to 4[a penalty
5[which shall
not be less than one lakh rupees but which may extend to one lakh rupees for each day during which6[such failure continues] subject to a maximum of one crore rupees]];
(c) charges an amount of brokerage which is in excess of the brokerage specified in the
regulations, he shall be liable to 7[a penalty 8[[which shall not be less than one lakh rupees but which
may extend to five times the amount of brokerage]] charged in excess of the specified brokerage,
whichever is higher.]
Notes:
1. Ins. by Act 9 of 1995, s. 9 (w.e.f. 25-1-1995). br
2. Subs. by Act 27 of 2014, s. 11, for "a penalty not exceeding five times the amount" (w.e.f.8-9-2014).
3. Ins. by Act 23 of 2019, s. 184 (w.e.f. 20-1-2020).
4. Subs. by Act 59 of 2002, s. 14, for "a penalty not exceeding five thousand rupees for each day during which such failure
continues" (w.e.f. 29-10-2002).
5. Subs. by Act 27 of 2014, s. 11, for certain words (w.e.f.8-9-2014).
6. Subs. by Act 13 of 2018, s. 183, for "he sponsors or carries on any such collective investment scheme including mutual fund"
(w.e.f. 8-3-2019)..
7. Subs. by Act 59 of 2002, s. 14, for "a penalty not exceeding five thousand rupees" (w.e.f. 29-10-2002).
8. Subs. by Act 27 of 2014, s. 11, for "of one lakh rupees or five times the amount of brokerage" (w.e.f.8-9-2014).