MINISTRY OF FINANCE
(Department of Economic Affairs)
New Delhi, the 20th January, 2020
S.O. 275(E).—In exercise of the powers conferred by sections 145 and 181 of the Finance (No. 2) Act, 2019 (23 of 2019), the Central Government hereby appoints the 20th day of January, 2020, as the date on which the provisions of Part III and sections 183, 184 and 185 of Part IX of Chapter VI of the said Act shall come into force.
[F. No. 01/12/2019-PM]
ANAND MOHAN BAJAJ, Jt. Secy. (Financial Markets)
PART III of of Chapter VI of the Finance (No. 2) Act, 2019
AMENDMENT TO THE SECURITIES CONTRACTS (REGULATION) ACT, 1956
Commencement of this Part.
144. The provisions of this Part shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
Amendment of Act 42 of 1956.
145. In the Securities Contracts (Regulation) Act, 1956, in section 23A, in clause (a), for the words “report to a recognised stock exchange, fails to furnish the same within the time specified therefor in the listing agreement or conditions or bye-laws of the recognised stock exchange or who furnishes”, the words “report to a recognised stock exchange or to the Board, fails to furnish the same within the time specified therefor in the listing agreement or conditions or bye-laws of the recognised stock exchange or the Act or rules made thereunder, or who furnishes” shall be substituted.
PART IX of of Chapter VI of the Finance (No. 2) Act, 2019 ( Section 183, 184 and 185)
Amendment of section 15C.
183. In section 15C of the principal Act, after the words “after having been called upon by the Board in writing”, the words “including by any means of electronic communication” shall be inserted.
Amendment of section 15F
184. In section 15F of the principal Act, in sub-clause (a), after the words “one lakh rupees but which may extend to”, the words “one crore rupees” shall be inserted.
Insertion of new section 15HAA.- Penalty for alteration, destruction, etc., of records and failure to protect the electronic database of Board.
185. After section 15HA of the principal Act, the following section shall be inserted, namely:—
`15HAA. Any person, who‑
(a) knowingly alters, destroys, mutilates, conceals, falsifies, or makes a false entry in any information, record, document (including electronic records), which is required under this Act or any rules or regulations made thereunder, so as to impede, obstruct, or influence the investigation, inquiry, audit, inspection or proper administration of any matter within the jurisdiction of the Board.
Explanation.—For the purposes of this clause, a person shall be deemed to have altered, concealed or destroyed such information, record or document, in case he knowingly fails to immediately report the matter to the Board or fails to preserve the same till such information continues to be relevant to any investigation, inquiry, audit, inspection or proceeding, which may be initiated by the Board and conclusion thereof;
(b) without being authorised to do so, access or tries to access, or denies of access or modifies access parameters, to the regulatory data in the database;
(c) without being authorised to do so, downloads, extracts, copies, or reproduces in any form the regulatory data maintained in the system database;
(d) knowingly introduces any computer virus or other computer contaminant into the system database and brings out a trading halt;
(e) without authorisation disrupts the functioning of system database;
(f) knowingly damages, destroys, deletes, alters, diminishes in value or utility, or affects by any means, the regulatory data in the system database; or
(g) knowingly provides any assistance to or causes any other person to do any of the acts specified in clauses (a) to (1),
shall be liable to a penalty which shall not be less than one lakh rupees but which may extend to ten crore rupees or three times the amount of profits made out of such act, whichever is higher.
Explanation.—In this section, the expressions “computer contaminant”, “computer virus” and “damage” shall have the meanings respectively assigned to them under section 43 of the Information Technology Act, 2000 (21 of 2000)