Question
If any person, who is registered with the Board as a
collective investment scheme, including mutual funds, for sponsoring or carrying on any investment scheme, fails to comply with the terms and conditions of certificate of registration, he shall be liable to a penaltySolution
Section 15D of SEBI Act. Â
This section specifically deals with "Penalty for certain defaults in case of mutual funds."  If a person registered with the Board as a collective investment scheme (including mutual funds) fails to  comply with  the terms and conditions of their certificate of registration: Â
- Minimum Penalty: ₹1 Lakh Â
- Daily Penalty: Up to ₹1 Lakh for each day the failure continues Â
- Maximum Penalty (Cap): ₹1 Crore Â
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