Law Maker

PENALTIES AND PROCEDURE

Section 23J: 1Factors to be taken into account while adjudging quantum of penalty

The Securities Contracts (Regulation) Act, 1956

While adjudging the quantum of penalty under 2[section 12A or section 23-I], 3[the Securities and Exchange Board of India or the adjudicating officer] shall have due regard to the following factors, namely:—

(a) the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default;

(b) the amount of loss caused to an investor or group of investors as a result of the default;

(c) the repetitive nature of the default.

4[Explanation.—For the removal of doubts, it is clarified that the power of an adjudicating officer to adjudge the quantum of penalty under sections 23A to 23C shall be and shall always be deemed to have exercised under the provisions of this section.]

Footnotes in the official text

  1. 1.Subs. by Act 13 of 2018, s. 154, for “Factors to be taken into account by the adjudicating officer” (w.e.f. 8-3-2019).
  2. 2.Subs. by s. 154, ibid., for “section 23-I” (w.e.f. 8-3-2019).
  3. 3.Subs. by s. 154, ibid., for “the adjudicating officer” (w.e.f. 8-3-2019).
  4. 4.Ins.by Act 7 of 2017, s. 138 (w.e.f. 31-5-2017).