New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    What is the penalty for a person who fails to enter into

    an agreement with a client as required under the Act or bye-laws of a recognized stock exchange?
    A A fine of one lakh rupees for the entire duration of the failure Correct Answer Incorrect Answer
    B A penalty of one lakh rupees per day of failure, up to a maximum of fifty lakh rupees Correct Answer Incorrect Answer
    C A penalty of one lakh rupees per day of failure, up to a maximum of one crore rupees Correct Answer Incorrect Answer
    D A fine of ten lakh rupees for every such failure Correct Answer Incorrect Answer
    E A penalty of fifty thousand rupees per day, with no maximum limit Correct Answer Incorrect Answer

    Solution

    SCRA Section 23B. Penalty for failure by any person to enter into an agreement with clients.—If any person, who is required under this Act or any bye-laws of a recognised stock exchange made thereunder, to enter into an agreement with his client, fails to enter into such an agreement, he shall be liable to a penalty 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 for every such failure.

    Practice Next