Section 23B: Penalty for failure by any person to enter into an agreement with clients.

If any person, who is required under this Act or any bye-laws of a recognised stock exchange made thereunder, to enter 1. Ins. by Act 31 of 1999, s. 6 (w.e.f. 22-2-2000). 2. Subs. by Act 1 of 2005, s. 21, for certain words (w.e.f. 12-10-2004). 3. Ins. by Act 13 of 2018, s. 148 (w.e.f. 8-3-2019). 4. Subs. by Act 9 of 1995, s. 24, for “or who fails to comply with the orders of the Securities and Exchange Board of India under section 21” (w.e.f. 25-1-1995). 5. Subs. by Act 1 of 2005, s. 10, for “section 21” (w.e.f. 12-10-2004). 6. Ins. by Act 32 of 1999, s. 6 (w.e.f. 16-10-1999). 7. Ins. by Act 1 of 2005, s. 11 (w.e.f. 12-10-2004). 8. Subs. by Act 23 of 2019, s. 146, for certain words (w.e.f. 20-1-2020). 9. Ins. by Act 13 of 2018, s. 149 (w.e.f. 8-3-2019). 10. Subs. by Act 27 of 2014, s. 25, for “of one lakh rupees for each day during which such failure continues or one crore rupees, whichever is less” (w.e.f. 8-9-2014) into an agreement with his client, fails to enter into such an agreement, he shall be liable to a penalty which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crorerupees for every such failure.