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      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 in accordance with the rules, it shall be liable to penalty
      A Not 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. Correct Answer Incorrect Answer
      B Not 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 Correct Answer Incorrect Answer
      C Not 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 lower Correct Answer Incorrect Answer
      D not 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 Correct Answer Incorrect Answer
      E not less than one lakh rupees but which may extend to one crore rupees Correct Answer Incorrect Answer

      Solution

      Section 19FA of Depositories Act 19FA. 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.

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