ABD Limited (listed Company) has failed to redress investors' grievances relating to the Transfer of the share and indulges in fraudulent and unfair trade practices relating to securities. Write down the penalties which

CS Professional · Secretarial Audit, Compliance Management and Due Diligence · PYQS · December 2021
ABD Limited (listed Company) has failed to redress investors' grievances relating to the Transfer of the share and indulges in fraudulent and unfair trade practices relating to securities. Write down the penalties which could be faced by the company under SEBI Act, 1992.

Answer & Explanation:

Penalty for failure to redress investors' grievances: Section 15C of the SEBI (Act) 1992: If any listed company or any person who is registered as an intermediary, after having been called upon by the Board in writing, to redress the grievances of investors, fails to redress such grievances within the time specified by the Board, such company or intermediary shall be liable to a penalty which shall not be less than ₹1 lakh but which may extend to ₹1 lakh for each day during which such failure continues subject to a maximum of ₹1 crore. Penalty for fraudulent and unfair trade practices: Section 15HA of the SEBI (Act) 1992: If any person indulges in fraudulent and unfair trade practices relating to securities, he shall be liable to a penalty which shall not be less than ₹5 lakh but which may extend to ₹25 crore or three times the amount of profits made out of such practices, whichever is higher.

Topics: SEBI Act, 1992

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