Section 15B - Penalty for Failure by any Person to Enter into Agreement with Clients - Securities and Exchange Board of India Act, 1992

1 [Penalty for Failure by any Person to Enter into Agreement with Clients. 15B. If any person, who is registered as an intermediary and is required under this Act or any rules or regulations made thereunder to enter into an agreement with his client, fails to enter into such agreement, he shall be liable to 2 [ a penalty 3 [ 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 ]]. **************** NOTES:- 1 . Inserted vide Section 9 of the Securities Laws (Amendment) Act, 1995 dated 25-03-1995, w.e.f. 25-1-1995 . 2 . Substituted vide Section 10 of the SEBI (Amendment) Act, 2002 dated 01-01-2002, w.e.f. 29-10-2002, before it was read as, a penalty not exceeding five lakh rupees for every such failure 3 . Substituted vide Section 7 of the Securities Laws (Amendment) Act, 2014 dated 22-08-2014 , w.e.f. 08-09-2014, before it was read as, of one lakh rupees for each day during which such failure continues or one crore rupees, whichever is less