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Punishments under Securities Act

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Aadesh Kandel,

Last Updated: 2022-07-26

 

Punishments Under Securities Act





Insider TradingFine equal to the amount of controversy or imprisonment for a terms of 1 year or both
False Trading (94) झट्टुो कारोबार / Fluctuation in Price(95) मूल्यमा उतार चढािा/ Affecting stock Exchange(96)Fine - 50000 to 1 lakh, Imprisonment not exceeding 1 year or both, where any one has suffered any loss or damage from such an act, such loss or damage has also to be recovered.
Supplying of Misleading Statements (97) / Fraudulent Transaction(98) / Prohibition on transaction of securities by fraud or Misrepresentation (99) / Destroy or concealment of documents, statements or records (100)Fine - 100,000 to 300,000 imprisonment not exceeding 2 years or both . And where any one has suffered any loss or damage from such transactions, such loss or damage shall also be recovered.
Doesn't make/maintain/submit accounts/books/reports/notices/information or makes and submits false statements or documentsFine- 50000 to 200000
knowingly contravenes the provision of this act thereby causes loss to any body corporate, securities business, stock exchange or to any personFine - 50000 to 200000, such damages may also be recovered
issues securities, operates Stock Exchange or securities business without fulfilling the requirements to be fulfilled under this act Fine 50000 to 100000
Fails to follow terms and conditions specified by the board, violates rules ,orders, directionsFine - 25000 to 75000

Terms -

False Trading - no change in actual ownership inspite of transaction and knowing the price offered making an offer in same price line

Fluctuation in price - causing price to be stable, increase or decrease because of Fake/False Trading

Affecting Stock Exchange - causing price to be stable, increase or decrease with and intent to encourage others to purchase or sell



Supplying of Misleading Statements - Committing following act to incite/stimulate others -

  • publish statements, projection knowing it is fake/misleading/false
  • hide information with malafide information
  • publish statements,promise,projection with malafide information

Fraudulent Transaction - Commit following transactions with intent to purchase, sell or exchange securities

  • make any technology, plan or commit any act to defraud
  • get a person to do any act or be engaged in any work by misrepresenting such person

Prohibition on transaction of securities by fraud or Misrepresentation - causing price to be stable, increase or decrease or inducing a person to purchase or sell securities

  • on the basis of statement that such a statement is false or misleading
  • any statement has become or misleading by the reason that any matter is omitted from or hidden or not included in such a statement,
Corporate Law

Published By

Aadesh Kandel

Category : Corporate Law

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