Failure to furnish periodical returns or comply with regulatory directions attracts mandatory penalties against recognised stock exchanges. Failure by a recognised stock exchange to furnish periodical returns to the Securities and Exchange Board of India, or to furnish false, incorrect or incomplete returns, to make or amend rules or bye laws as directed by the Board, or to comply with directions issued by the Board, renders the recognised stock exchange liable to a monetary penalty, establishing financial consequences for lapses in reporting, rule making and compliance with regulatory directions.