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<h1>Brokers Must Segregate Client Funds: Violations Under Section 23D Face Penalties from 1 Lakh to 1 Crore.</h1> Under Section 23D of the Securities Contracts (Regulation) Act, 1956, any registered stock broker or sub-broker who fails to segregate client securities or funds, or uses them for personal or other clients' purposes, faces a penalty ranging from a minimum of one lakh rupees to a maximum of one crore rupees. This provision was amended by the Securities Laws (Amendment) Act, 2004, and further modified in 2014 to specify the penalty range.