In force · As amended up to 2026-08
23. Penalties. —(1) Any person who—
(a) without reasonable excuse (the burden of proving which shall be on him) fails to comply with any requisition made under sub-section (4) of section 6; or
(b) enters into any contract in contravention of any of the provisions contained in section 13 or section 16; or
(c) contravenes the provisions contained in[2] [section 17 or section 17A] or section 19; or
3[(d) enters into any contract in derivative in contravention of section 18A or the rules made under section 30.]
1. Subs. by Act 1 of 2005, s. 9, for section 22F (w.e.f. 12-10-2004).
2. Subs. by Act 27 of 2007, s. 4, for "section 17" (w.e.f. 28-5-2007).
3. Ins. by Act 31 of 1999, s. 6 (w.e.f. 22-2-2000).
(e) owns or keeps a place other than that of a recognised stock exchange which is used for the purpose of entering into or performing any contracts in contravention of any of the provisions of this Act and knowingly permits such place to be used for such purposes; or
(f) manages, controls, or assists in keeping any place other than that of a recognised stock exchange which is used for the purpose of entering into or performing any contracts in contravention of any of the provisions of this Act or at which contracts are recorded or adjusted or rights or liabilities arising out of contracts are adjusted, regulated or enforced in any manner whatsoever; or
(g) not being a member of a recognised stock exchange or his agent authorised as such under the rules or bye-laws of such stock exchange or not being a dealer in securities licensed under section 17 wilfully represents to or induces any person to believe that contracts can be entered into or performed under this Act through him; or
(h) not being a member of a recognised stock exchange or his agent authorised as such under the rules or bye-laws of such stock exchange or not being a dealer in securities licensed under section 17, canvasses, advertises or touts in any manner, either for himself or on behalf of any other persons for any business connected with contracts in contravention of any of the provisions of this Act; or
(i) joins, gathers or assists in gathering at any place other than the place of business specified in the
bye-laws of a recognised stock exchange, any person or persons for making bids or offers or for entering into or performing any contracts in contravention of any of the provisions of this Act,
1[shall, without prejudice to any award of penalty by the Adjudicating Officer 2[or the Securities and Exchange Board of India] under this Act, on conviction, be punishable with imprisonment for a term which may extend to ten years or with fine, which may extend to twenty-five crore rupees or with both].
(2) Any person who enters into any contract in contravention of the provisions contained in section 15 3[or who fails to comply with the provisions of 4[section 21 or section 21A] or with the orders of] 5[Securities and Exchange Board 4[section 21 or section 21A] of India or the Central Government under section 22][6] [or with the orders of the Securities Appellate Tribunal][7] [shall, without prejudice to any award of penalty by the Adjudicating Officer under this Act, on conviction, be punishable with imprisonment for a term which may extend to ten years or with fine, which may extend to twenty-five crore rupees, or with both.]
8[23A. Penalty for failure to furnish information, return, etc. —Any person, who is required under this Act or any rules made thereunder,—
(a) to furnish any information, document, books, returns or[9] [report to a recognised stock exchange or to the Board, fails to furnish the same within the time specified therefor in the listing agreement or conditions or bye-laws of the recognised stock exchange or the Act or rules made thereunder, or who furnishes][10] [false, incorrect or incomplete information, document, books, return or report], shall be liable to a penalty[11] [which shall not be less than one lakh rupees but which may extend to one lakh rupees for each during which such failure continues subject to a maximum of one crore rupees], whichever is less for each such failure;
(b) to maintain books of account or records, as per the listing agreement or conditions, or
bye-laws of a recognised stock exchange, fails to maintain the same, shall be liable to a penalty
11[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].
1. Subs. by Act 1 of 2005, s. 10, for certain words (w.e.f. 12-10-2004).
2. Ins. by Act 13 of 2018, s. 148 (w.e.f. 8-3-2019).
3. Subs. by Act 9 of 1995, s. 24, for "or who fails to comply with the orders of the Securities and Exchange Board of India under section 21" (w.e.f. 25-1-1995).
4. Subs. by Act 1 of 2005, s. 10, for "section 21" (w.e.f. 12-10-2004).
5. Subs. by Act 15 of 1992, s. 33 and Sch., for "the central Government under section 21 or section 22" (w.e.f. 30-1-1992).
6. Ins. by Act 32 of 1999, s. 6 (w.e.f. 16-10-1999).
7. Subs. by Act 1 of 2005, s. 10, for certain words (w.e.f. 12-10-2004).
8. Ins. by Act 1 of 2005, s. 11 (w.e.f. 12-10-2004).
9. Subs. by Act 23 of 2019, s. 146, for certain words (w.e.f. 20-1-2020).
10. Ins. by Act 13 of 2018, s. 149 (w.e.f. 8-3-2019).
11. Subs. by Act 27 of 2014, s. 25, for "of one lakh rupees for each day during which such failure continues or one crore rupees, whichever is less" (w.e.f. 8-9-2014).
Source: India Code