law: Securities Contracts (Regulation) Act, 1956
  23.Penalties.- 
  (1) Any person who-
  (a)
  
  without reasonable excuse (the burden of proving which shall be on him) fails
  
  to comply with any requisition made under sub-section (4) of section 6; or
  (b)
  
  enters into any contract in contravention of any of the provisions contained in
  
  section 13 or section 16; or
  (c)
  
  contravenes the provisions contained in section 17, or section 19; or enters
  
  into any option in securities in contravention of the provisions contained in
  
  section 20; or
  (d)
  
  enters into any option in securities in contravention of the provisions
  
  contained in section 20; or
  (e)
  
  owns or keeps a place other than that of a recognised stock exchange which is
  
  used for the purpose of entering into or performing any contracts in contravention
  
  of any of the provisions of this Act and knowingly permits such place to be
  
  used for such purposes; or
  (f)
  
  manages, controls, or assists in keeping any place other than that of a
  
  recognised stock exchange which is used for the purpose of entering into or
  
  performing any contracts in contravention of any of the provisions of this Act
  
  or at which contracts are recorded or adjusted or rights or liabilities arising
  
  out of contracts are adjusted, regulated or enforced in any manner whatsoever;
  
  or
  (g)
  
  not being a member of a recognised stock exchange or his agent authorised as
  
  such under the rules or bye-laws of such stock exchange or being a dealer in
  
  securities licensed under section 17 wilfully represents to or induces any
  
  person to believe that contracts can be entered into or performed under this
  
  Act through him; or
  (h)
  
  not being a member of a recognised stock exchange or his agent authorised as
  
  such under the rules or bye-laws of such stock exchange or not being a dealer
  
  in securities licensed under section 17, canvasses, advertises or touts in any
  
  manner either for himself or on behalf of any other persons for any business
  
  connected with contracts in contravention of any of the provisions of this Act;
  
  or
  (i)
  
  joins, gathers or assists in gathering at any place other than the place of
  
  business specified in the bye-laws of a recognised stock exchange any person or
  
  persons for making bids or offers or for entering into or performing any
  
  contracts in contravention of any of the provisions of this Act;
  shall,
  
  on conviction, be punishable with imprisonment for a term which may extend to
  
  one year, or with fine, or with both.
  (2) Any person who
  
  enters into any contract in contravention of the provisions contained in
  
  section 15 or who fails to comply with the orders of the cg under section 21 or
  
  section 22 shall, on conviction, be punishable with fine which may extend to
  
  one thousand rupees.