Securities and Exchange Board of India Act, 1992
27.Offences by companies.-
(1) Where an offence under this Act was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
(2) Not withstanding
anything contained in sub-section (1), where an offence under this Act has been
committed by a company and it is proved that the offence has been committed
with the consent or connivance of , or is attribute to any neglect on the part
of any director , manager, secretary or other officer shall also be deemed to
be guilty of the offence and shall be liable to be proceeded against and
Explanation.-- For the purposes of this section,---
(a) "company" means any body corporate and includes a firm or other association of individuals; and
(b) "director", in relation to a firm, means a partner in the firm.