Apramey is a qualified Company Secretary and is employed in SEBI as rank of a Division Chief. While conducting an enquiry, he noticed that IIL Ltd, a stock broking firm had failed to issue contract notes in the form and

According to section 15F of the Securities and Exchange Board of India Act, 1992, 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 a penalty which shall not be less than one lakh rupees but which may extend to 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 a penalty 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; (c) charges an amount of brokerage which is in excess of the brokerage specified in the regulations, he shall be liable to a penalty 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. According to section 15J, while adjudging quantum of penalty under 15-I or section 11 or section 11B, the Board (SEBI) or the adjudicating officer shall have due regard to the following factors, namely: (a) the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default; (b) the amount of loss caused to an investor or group of investors as a result of the default; (c) the repetitive nature of the default.