SEBI has imposed a penalty of ₹ 25 crore on Sunset Company Ltd. However, due to problem of liquidity, the company is unable to pay the amount of penalty. Explain, how the amount can be recovered under the provisions of S
CS Executive · Securities Laws and Capital Markets · PYQS · December 2020
SEBI has imposed a penalty of ₹ 25 crore on Sunset Company Ltd. However, due to problem of liquidity, the company is unable to pay the amount of penalty. Explain, how the amount can be recovered under the provisions of SEBI Act, 1992.
Answer & Explanation:
Section 28A (1) of the SEBI Act, 1992 deals with recovery of amounts. If a person: fails to pay the penalty imposed by adjudicating officer or fails to comply with any direction of SEBI for refund of monies or fails to comply with a direction of disgorgement order under Section 11 B) or fails to pay any fees due to SEBI, The Recovery Officer may draw up under his signature a statement in a specified form specifying the amount due from the person and shall proceed to recover from such person the amount specified in the certificate by one or more of the following modes, namely:- attachment and sale of the person's movable property; attachment of the person's bank accounts; attachment and sale of the person's immovable property; arrest of the person and his detention in prison; appointment a receiver for the management of the person's movable and immovable properties.
Topics: Securities Market Regulation
Related Questions in this Topic
- "SEBI may take any of the measures either pending investigation or inquiry or on completion of such investigation." Enu...
- "The Stock Exchanges have a vital role to play in development of a country in general, and industrial growth of companie...
- Every intermediary of securities market has to apply to SEBI for grant of certificate to act as intermediary. Describe v...
- Ram purchased a 3 month call option for 100 shares in XYZ Ltd. at a premium of ₹ 30 per share, with an exercise price of...
- Write short notes on the followings: Post trade surveillance.