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<h1>Section 23C imposes penalties on brokers and companies for failing to resolve investor complaints promptly.</h1> Section 23C of the Securities Contracts (Regulation) Act, 1956, mandates penalties for stock brokers, sub-brokers, or companies with listed or proposed securities on a recognized stock exchange if they fail to address investor grievances within the time specified by the Securities and Exchange Board of India (SEBI) or the exchange. The penalty ranges from a minimum of one lakh rupees to one lakh rupees per day of continued non-compliance, capped at one crore rupees. This provision was inserted by the Securities Laws (Amendment) Act, 2004, and amended in 2014.