191. Insertion of new section 19FA.
After section 19F of the principal Act, the following section shall be inserted, namely:––
Penalty for failure to conduct business in a fair manner.
“19FA. Where a depository fails to conduct its business with its participants or any issuer or its agent or any person associated with the securities markets in a fair manner in accordance with the rules, regulations made by the Board or directions issued by the Board under this Act, it shall be liable to penalty which shall not be less than five crore rupees but which may extend to twenty-five crore rupees or three times the amount of gains made out of such failure, whichever is higher.”.
Notes on Clauses:
Clause 191 of the Bill seeks to insert a new section 19FA in the Act, for imposing monetary penalty on a depository for failure to conduct its business in a fair manner in accordance with the rules and regulations.
