Penalty for fraudulent and unfair trade practices
Section 15HA of the Securities and Exchange Board of India Act, 1992 deals with penalty for fraudulent and unfair trade practices. If any person indulges in fraudulent and unfair trade practices relating to securities, he shall be liable to a penalty [which shall not be less than five lakh rupees but which may extend to twenty-five crore rupees or three times the amount of profits made out of such practices, whichever is higher The Act came into force on 30 Jan 1992.
1[15HA. Penalty for fraudulent and unfair trade practices.--If any person indulges in fraudulent and unfair trade practices relating to securities, he shall be liable to a penalty 2[which shall not be less than five lakh rupees but which may extend to twenty-five crore rupees or three times the amount of profits made out of such practices, whichever is higher].]
Section 15HA, The Securities and Exchange Board of India Act, 1992 (Act 15 of 1992).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Quantum Global Securities and Leasing Company LTD vs Securities and Exchange Board of India
Court's Decision & Legal Precedent
The conditions stipulated in clauses (a), (b) and (c) of Section 15J of the SEBI Act are illustrative in nature and not exhaustive. The Adjudicating Officer has discretion to consider other circumstances beyond those enumerated in Section 15J while determining the quantum of penalty under Sections 15A to 15HA. The power and discretion vested by Section 15J is not eclipsed by the penalty provisions in Sections 15A to 15HA, and the Explanation to Section 15J added by Act No. 7 of 2017 clarifies that the Adjudicating Officer shall have deemed to have always exercised this discretion in determining penalties. These provisions must be read harmoniously to avoid conflict and inconsistency.
On this section: Penalty for violation of Prohibition of Fraudulent and Unfair Trade Practices Regulations - up to Rs. 25 crores or three times profit made, whichever is higher
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… buy orders for the abovementioned scrips and thereby the Petitioner has done front running in the said scrips and has thereby violated Regulation 3 (a), 3 (b), 3 (c), 3 (d) and 4(1) of the 2003 Regulations. - b) Resultantly, a penalty of Rs.1 Crore was imposed on the Petitioner by the adjudicating officer under Section 15HA of the Securities and Exchange Board of India Act, 1992 ( hereinafter referred to as "the SEBI Act" ). - c) The Order imposing penalty on the Petitioner was challenged by the Petitioner before the Securities Appellate Tribunal ( hereinafter referred to as the Tribunal ) which affirmed the Order imposing penalty. …
Questions about Section 15HA
What have the courts held on Section 15HA of the Securities and Exchange Board of India Act?
Quantum Global Securities and Leasing Company LTD vs Securities and Exchange Board of India (28 Feb 2019) is the leading judgment on this section among those set out below: Penalty for violation of Prohibition of Fraudulent and Unfair Trade Practices Regulations - up to Rs. 25 crores or three times profit made, whichever is higher.
How do I find court cases under Section 15HA of the Securities and Exchange Board of India Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Sebi Act 15HA, section 15HA Sebi Act, section 15HA of the Securities and Exchange Board of India Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Quantum Global Securities and Leasing Company LTD vs Securities and Exchange Board of India (28 Feb 2019).
What should I read with Section 15HA of the Securities and Exchange Board of India Act, and has it changed?
3 other provisions in this corpus refer back to it.
When did Section 15HA of the Securities and Exchange Board of India Act come into force?
Section 15HA of the Securities and Exchange Board of India Act, cited as Sebi Act 15HA, came into force on 30 Jan 1992, having been enacted on 04 Apr 1992. It is in force as at the date shown on this page.
Other sections of this Act
- 11. Functions of Board1315 words
- 11C. Investigation1145 words
- 12. Registration of stock-brokers, sub-brokers, share transfer agents, etc678 words
- 28A. Recovery of amounts629 words
- 15U. Procedure and powers of the Securities Appellate Tribunal494 words
- 15D. Penalty for certain defaults in case of mutual funds464 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.