Which act(s) constitutes an offence for an individual, under Section 20 of the Depository Act, 1996? And what are the penalties provided under the Act for such offence?
CS Executive · Capital Market and Securities Laws · PYQS · June 2026
Which act(s) constitutes an offence for an individual, under Section 20 of the Depository Act, 1996? And what are the penalties provided under the Act for such offence?
Answer & Explanation:
Under Section 20 of the Depositories Act, 1996, following act(s) constitutes an offence for any individual: (a) Contravenes or attempts to contravene or abets the contravention of the provisions of this Act or any rules or regulations or buy-laws made thereunder, or (b) Fails to pay the penalty imposed by the adjudicating officer or the SEBI or fails to comply with any directions or orders. Penalties as provided under this section, for contravening the above mentioned acts: (i) For (a) above, person shall be punishable with imprisonment for a term which may extent of 10 years, or with fine, which may extend to ₹ 25 crore, or with both, and (ii) For (b) above, person shall be punishable with imprisonment for a term which shall not be less than one month, but which may extent to 10 years, or with fine, which may extend to ₹ 25 crore or with both.
Topics: Depositories Act, 1996
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