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No settlement of cases charged with serious offences: SEBI

Settlements cannot be sought for cases involving non-compliance to SEBI orders

January 10, 2014 12:02 IST | India Infoline News Service
SEBI (Securities and Exchange Board of India) said that companies charged with serious offences like illegal money pooling, insider trading and fraudulent trades will not be able to settle these cases any more.

The SEBI (Settlement of Administrative and Civil Proceedings) Regulations, 2014, provide for guiding factors for dealing with the settlement process, while serious offences such as insider trading are excluded from the scope of settlement.

Also, settlements cannot be sought for cases involving non-compliance to SEBI orders, violations to the open offer requirements, listing disclosure norms, front running, sharing of unpublished price-sensitive information, manipulative practices of mutual funds, and failure to redress investor grievances, among other serious offences.

Filing of an application for settlement of any specified proceedings shall not affect continuance of the proceedings except that the passing of the final order shall be in abeyance till the application is disposed of, SEBI said in a notification.
Where the application is filed in case of proceedings that may be initiated against the applicant, such proceedings shall not be initiated till the application is rejected or withdrawn, it added.

The settlement amount, excluding the legal costs and disgorgement amount, shall be credited to the Consolidated Fund of India.
The legal costs, if any, forming part of the settlement amount shall be credited to the Securities and Exchange Board of India General Fund.
The amount of ill-gotten profits made or losses avoided by the applicant that may be disgorged as part of the settlement terms, shall be credited to the Investor Protection and Education Fund of the Board.


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