The Adjudicating Officer appointed by SEBI to conduct an inquiry may impose penalty as he thinks fit without considering the impact of default. Examine the statement with reference to Securities Contracts (Regulations) A

The statement is not correct as Section 23J of the Securities Contracts (Regulation) Act, 1956 provides for the factors to be taken into account by the adjudicating office. While adjudging the quantum of penalty, the adjudicating officer shall have due regard to the following factors: the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default; the amount of loss caused to an investor or group of investors as a result of the default; the repetitive nature of the default.