eCourtsIndia
IndiaCode Laws
Section15J
The Securities and Exchange Board of India Act, 1992

Factors to be taken into account while adjudging quantum of penalty

In force From 30 Jan 1992 Act 15 of 1992 As on 14 Oct 2026

Act 15 of 1992 Ministry Finance Enacted 04 Apr 1992 In force 30 Jan 1992

Section 15J of the Securities and Exchange Board of India Act, 1992 deals with factors to be taken into account while adjudging quantum of penalty. While adjudging the quantum of penalty under section [15-I or section 11 or section 11B, the Board or the adjudicating officer] 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 th The Act came into force on 30 Jan 1992.

15J. 1[Factors to be taken into account while adjudging quantum of penalty].--While adjudging the quantum of penalty under section 2[15-I or section 11 or section 11B, the Board or the adjudicating officer] 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.

3[Explanation.--For the removal of doubts, it is clarified that the power of 4*** to adjudge the quantum of penalty under sections 15A to 15E, clauses (b) and (c) of section 15F, 15G, 15H and 15HA shall be and shall always be deemed to have been exercised under the provisions of this section.]]

Section 15J, 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.

This section refers to

  1. s. 11 Functions of Board
  2. s. 11B Power to issue directions and levy penalty
  3. s. 15A Penalty for failure to furnish information, return, etc
  4. s. 15E Penalty for failure to observe rules and regulations by an asset management company
  5. s. 15F Penalty for default in case of stock brokers
  6. s. 15G Penalty for insider trading
  7. s. 15H Penalty for non-disclosure of acquisition of shares and takeovers
  8. s. 15HA Penalty for fraudulent and unfair trade practices

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.

  1. Quantum Global Securities and Leasing Company LTD vs Securities and Exchange Board of India

    Supreme Court of India 28 Feb 2019 Binding (Supreme Court) Reportable Reportable (2019) 8 SCC 384

    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: Factors to be taken into account by Adjudicating Officer while adjudging quantum of penalty: disproportionate gain, investor loss, repetitive nature of default. Explanation added by Act No. 7 of 2017 clarifies that power under Section 15J shall apply to penalties under Sections 15A to 15HA

    Read the full order on eCourts India

  2. Magnum Equity Broking LTD vs Securities and Exchange Board of India

    Supreme Court of India 28 Feb 2019 Binding (SC) Reportable (2019) 4 SCC 46

    Court's Decision & Legal Precedent

    The conditions stipulated in clauses (a), (b), and (c) of Section 15J of the SEBI Act, 1992 are illustrative in nature and not exhaustive. The Adjudicating Officer has discretion to consider circumstances beyond those enumerated in Section 15J while determining penalty quantum under Sections 15A to 15HA. Section 15J was never eclipsed by amendments to Sections 15A-15HA, and the Explanation added by Act No. 7 of 2017 clarified this legislative intent. The power to impose "such penalty as he thinks fit" under Section 15I(2) supports this discretionary approach. However, the imposition of penalty itself depends on satisfaction of substantive provisions in Sections 15A-15HA, not on satisfaction of Section 15J conditions.

    On this section: Core provision under reference. Specifies factors (disproportionate gain, investor loss, repetitive nature) Adjudicating Officer should consider when determining penalty quantum. Court held these are illustrative, not exhaustive, and not mandatory preconditions.

    Read the full order on eCourts India

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.

Questions about Section 15J

What have the courts held on Section 15J 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: Factors to be taken into account by Adjudicating Officer while adjudging quantum of penalty: disproportionate gain, investor loss, repetitive nature of default. Explanation added by Act No. 7 of 2017 clarifies that power under Section 15J shall apply to penalties under Sections 15A to 15HA. Another 1 judgment on this section is set out below, all of them from the Supreme Court.

How do I find court cases under Section 15J 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 15J, section 15J Sebi Act, section 15J 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. 2 reported judgments on this section are 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 15J of the Securities and Exchange Board of India Act, and has it changed?

Its own text turns on section 11 (Functions of Board), section 11B (Power to issue directions and levy penalty), section 15A (Penalty for failure to furnish information, return, etc), section 15E (Penalty for failure to observe rules and regulations by an asset management company), and on 4 further provisions, so none of them can safely be read on its own.

When did Section 15J of the Securities and Exchange Board of India Act come into force?

Section 15J of the Securities and Exchange Board of India Act, cited as Sebi Act 15J, 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

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 14 Oct 2026. This page is not a substitute for legal advice.