Law · Securities Contracts (Regulation) Act, 1956
Under Section 24 of the Securities Contracts (Regulation) Act, 1956, when a company contravenes the provisions of the Act, who is held liable?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The penalty is waived automatically under safe-harbour clauses
- 2Only SEBI can be held administratively responsible
- 3Directors, managers, and other officers responsible are also liable, unless due diligence is proven✓
- 4Only the company as a corporate entity is liable
Correct answer
Directors, managers, and other officers responsible are also liable, unless due diligence is proven
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