PUNISHMENTS FOR CONTRAVENTIONS :

The bye-laws made under Section 9 may;

(a) specify the bye-laws, the contravention of which shall make a contract entered into otherwise than in accordance with the bye- laws void under sub-section (1) of section 14 (which specifies contract in notified areas to be void).

(b) provide that the contravention of any of the bye-laws shall render the member concerned liable to one or more of the following punishments, namely;

(i) fine,

(ii) expulsion from membership,

(iii) suspension from membership for a specified period,

(iv) any other penalty of a like nature not involving the payment of money.

Any bye-laws made under this section shall be subject to such conditions in regard to previous publication as may be prescribed, and, when approved by SEBI, shall be published in the Gazette of India and also in the Official Gazette of the State in which the principal office of the recognised stock exchange is situated, and shall have effect as from the date of its publication in the Gazette of India:

However, if SEBI is satisfied in any case that in the interest of the trade or in the public interest any bye-laws should be made immediately, it may, by order in writing specify the reasons therefor, dispense with the condition of previous publication.