Section 21B in The Forward Contracts (Regulation) Act, 1952
21B. Penalty for failure by any person to enter into an agreement with clients. —If any person, who is registered as a member or an intermediary and is required under this Act or any rules or regulations made thereunder to enter into an agreement with his client, fails to enter into such agreement, he shall be liable to a penalty of twenty thousand rupees for each such failure during which such failure continues or five lakh rupees, whichever is less.
