Question
Where a depository fails to conduct its business with
its participants or any issuer or its agent or any person associated with the securities markets in a fair manner, it shall be liable to penaltySolution
Section 19FA of Depository Act - Penalty for failure to conduct business in a fair manner- Where a depository fails to conduct its business with its participants or any issuer or its agent or any person associated with the securities markets in a fair manner in accordance with the rules, regulations made by the Board or directions issued by the Board under this Act, it shall be liable to penalty which shall not be less than five crore rupees but which may extend to twenty-five crore rupees or three times the amount of gains made out of such failure, whichever is higher.
Consider the following:Â
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