Section 24 of The Securities and Exchange Board of India Act, 1992
- (1)Without prejudice to any award of penalty by the adjudicating officer 3[or the Board] under this Act, if any person contravenes or attempts to contravene or abets the contravention of the provisions of this Act or of any rules or regulations made thereunder, he shall be punishable with imprisonment for a term which may extend to 4[ten years, or with fine, which may extend to twenty-five crore rupees or with both].
- (2)If any person fails to pay the penalty imposed by the adjudicating officer 5[or the Board] or fails to comply with any 6*** directions or orders, he shall be punishable with imprisonment for a term which shall not be less than one month but which may extend to 7[ten years, or with fine, which may extend to twenty-five crore rupees or with both].]
Summary
- Breaking the rules of this Act, or helping someone else break them, is a serious crime that can lead to a prison sentence of up to ten years.
- A person who breaks the rules might also be forced to pay a massive fine that can reach up to twenty-five crore rupees, or face both jail and the fine.
- If someone refuses to pay a penalty imposed by the Board, they will face a mandatory minimum of one month in prison.
- This minimum prison time for ignoring penalties or directions can also stretch up to ten years, alongside the heavy fines.
Practical examples
FAQ
1. What is the maximum jail time for violating this Act?
You can be imprisoned for up to ten years.
2. What is the maximum fine a court can impose for an offence under this Act?
The fine can extend up to twenty-five crore rupees.
3. What happens if I just refuse to pay a penalty the Board gives me?
You commit an offence that carries a minimum mandatory prison sentence of one month, and it could be up to ten years.
Test yourself
Q1.Under Section 24 of The Securities and Exchange Board of India Act, 1992, what is the maximum term of imprisonment for a person who contravenes the provisions of the Act?
Q2.Under Section 24 of The Securities and Exchange Board of India Act, 1992, what is the maximum fine that can be imposed for an offence?
Q3.Under Section 24 of The Securities and Exchange Board of India Act, 1992, what is the mandatory minimum punishment if a person fails to pay a penalty imposed by the adjudicating officer?
Q4.Under Section 24 of The Securities and Exchange Board of India Act, 1992, does the law punish people who attempt to break the rules but fail?