Section 15D: Penalty for certain defaults in case of mutual funds

Q: What does Section 15D of The Securities and Exchange Board of India Act, 1992 (SEBI Act) deal with?

Section 15D SEBI Act pertains to "Penalty for certain defaults in case of mutual funds". It is part of the The Securities and Exchange Board of India Act, 1992, a legislation enacted by the Parliament of India. Section 15D of The Securities and Exchange Board of India Act, 1992 (SEBI Act) prescribes penalty for certain defaults in case of mutual funds. As verified on 19 May 2026.

Q: Is Section 15D SEBI Act still in force?

Yes, Section 15D of the The Securities and Exchange Board of India Act, 1992 is currently in force across the Republic of India.

Q: What is धारा 15D SEBI Act?

धारा 15D SEBI Act is the Devanagari Hindi reference for Section 15D of the The Securities and Exchange Board of India Act, 1992. Section 15D of The Securities and Exchange Board of India Act, 1992 (SEBI Act) prescribes penalty for certain defaults in case of mutual funds. As verified on 19 May 2026.

Q: What is Dhara 15D SEBI Act?

Dhara 15D SEBI Act is the Roman Hindi reference for Section 15D of the The Securities and Exchange Board of India Act, 1992. "Dhara" means "Section" in Hindi. Section 15D of The Securities and Exchange Board of India Act, 1992 (SEBI Act) prescribes penalty for certain defaults in case of mutual funds. As verified on 19 May 2026.

Q: How to cite Section 15D of The Securities and Exchange Board of India Act, 1992?

Cite as: "Section 15D, The Securities and Exchange Board of India Act, 1992 (SEBI Act)" in legal briefs. For academic writing, use the BlueBook format: The Securities and Exchange Board of India Act, 1992, § 15D (India).

Law on Tips Editorial Board

If any person, who is—

(a) required under this Act or any rules or regulations made thereunder to obtain a certificate of registration from the Board for sponsoring or carrying on any collective investment scheme, including mutual funds, sponsors or carries on any collective investment scheme, including mutual funds, without obtaining such certificate of registration, 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 he sponsors or carries on any such collective investment scheme including mutual funds subject to a maximum of one crore rupees;

(b) registered with the Board as a collective investment scheme, including mutual funds, for sponsoring or carrying on any investment scheme, fails to comply with the terms and conditions of certificate of registration, 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 crore rupees;

(c) registered with the Board as a collective investment scheme, including mutual funds, fails to make an application for listing of its schemes as provided for in the regulations governing such listing, 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 crore rupees;

(d) registered as a collective investment scheme, including mutual funds, fails to despatch unit certificates of any scheme in the manner provided in the regulation governing such despatch, 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 crore rupees;

(e) registered as a collective investment scheme, including mutual funds, fails to refund the application monies paid by the investors within the period specified in the regulations, 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 crore rupees;

(f) registered as a collective investment scheme, including mutual funds, fails to invest money collected by such collective investment schemes in the manner or within the period specified in the regulations, 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 crore rupees.