What is the penalty for a depository participant who fails to enter into an agreement with its account-holder? It is assumed that the depository participant is registered with the Securities and Exchange Board of India.

Section 19B of the Depositories Act, 1996, provides that if a depository or participant who is a registered intermediary with SEBI and is required under this Act to enter into such an agreement fails to enter into such agreements, such intermediary shall be liable to a penalty of one lakh rupees (₹ 1,00,000) for each day during which such failure continues or one crore rupees (₹ 1,00,00,000), whichever is less, for every such failure.