If any person, who is registered as a stock broker under this Act charges an amount of brokerage which is in excess of the brokerage specified in the regulations, he shall be liable to a penalty which shall

  Based on Section 15F(c) of the Securities and Exchange Board of India (SEBI) Act, 1992, the correct penalty is:   not be less than one lakh rupees but which may extend to five times the amount of brokerage charged in excess of  the specified brokerage, whichever is higher   Legal Breakdown (Section 15F)   This section deals with "Penalty for default in case of  stock brokers ." specifically  regarding  the overcharging of brokerage fees.  

• Minimum Penalty: ₹1 Lakh  

• Maximum Penalty: 5 times the  excess  brokerage charged (not the total brokerage).  

• Condition: The penalty will be the  higher  of the two amounts.  

Why this matters: This provision ensures that the penalty is proportionate to the violation. If the excess brokerage charged is small (e.g., ₹5,000), the minimum penalty of ₹1 Lakh acts as a deterrent. However, if the excess brokerage is massive (e.g., ₹50 Lakhs), the penalty scales up to 5 times that amount (₹2.5 Crores), ensuring the offender does not profit from the violation.