Punishments Under Securities Act
Insider Trading | Fine 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 documents | Fine- 50000 to 200000 |
knowingly contravenes the provision of this act thereby causes loss to any body corporate, securities business, stock exchange or to any person | Fine - 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, directions | Fine - 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,
Published By
Aadesh Kandel
Share
Comments