Section 25 in Securities and Exchange Board of India (Underwriters) Regulations, 1993
25. Liability for action in case of default:-
An underwriter or a stock broker or a merchant hanker entitled to carry on business of underwriting who-(a)fails to comply with any conditions subject to which certificate has been granted;(b)contravenes any of the provisions of the Act, Rules or regulations, shall be liable to any of the penalties specified in sub-regulation (2).(2)The penalties referred to in sub-regulation (1) may be either:(a)suspension of registration after enquiry for a specified period; or(b)cancellation of registration.
