2. redress the grievances of the investors,


2. Penalty for failure to enter into an agreement (Sec. 19B):

If a depository or participant or any issuer or its agent or any person, who is registered as an intermediary with the SEBI and is required under this Act or any rules or regulations made there under, to enter into an agreement, fails to enter into such agreement, such depository or participant or issuer or its agent or intermediary shall be liable to a penalty of Rs. 1 lakh for each day during which such failure continues or Rs. 1 crore, whichever is less for every such failure.

3. Penalty for failure to redress investors’ grievances (Sec.

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19C).

If any depository or participant or any issuer or its agent after having been called upon by the Board in writing, to redress the grievances of the investors, fails to redress such grievances within the time specified by the Board, such depository or participant or issuer or its agents or intermediary shall be liable to a penalty of Rs. 1 lakh for each day during which such failure continues or Rs. 1 crore, whichever is less.

4. Penalty for delay in dematerialisation or issue of certificate of securities:

(Sec. 19D). If any issuer or its agent or any person, who is registered as an intermediary, fails to dematerialise or issue the certificate of securities on opting out of a depository by the investors, within the time specified under this Act or regulations or bye-laws, such issuer or its agent or intermediary shall be liable to a penalty of Rs.

1 lakh for each day during which such failure continues or Rs. 1 crore, whichever is less.

5. Penalty for failure to comply with directions issued by the SEBI (Sec.

19F):

If any person fails to comply with the directions issued by the Board under section 19, within the time specified by it, he shall be liable to a penalty of Rs. 1 lakh for each day during which such failure continues or Rs. 1 crore, whichever is less.

6. Penalty for contravention of the Act (Sec. 20):

Whosoever contravenes or attempts to contravene or abets the contravention of the provisions of this Act or any regulations or bye-laws made there under shall be punishable with imprisonment for a term which may extend to 5 years, or with fine which may extend to Rs. 25 crore, or with both.

7.

Offences by companies (Sec. 21):

Where an offence under this Act has been committed by a company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly. Further, where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly.

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