19D. Penalty for delay in dematerialisation or issue of certificate of securities..
1[19D. Penalty for delay in dematerialisation or issue of certificate of securities.—If any issuer or its agent or any person, who is registered as an intermediary under the provisions of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), fails to dematerialise or issue the certificate of secur ities on opting out of a depository by the investors, within the time specified under this Act or regulations or bye‑laws made thereunder or abets in delaying the process of dematerialisation or issue the certificate of securities on opting out of a depository of securities, such issuer or its agent or intermediary shall be liable to a penalty of one lakh rupees for each day during which such failure continues or one crore rupees, whichever is less.]
1. Ins. by Act 1 of 2005, sec. 17 (w.r.e.f. 12-10-2004).