SEBI proposes norms for settlement of default proceedings

India Infoline News Service | Mumbai |

No application will be considered if it is made after 60 days from the date of service of showcause notice issued by SEBI

Market regulator SEBI (Securities and Exchange Board of India) on Monday issued a consultation paper on draft SEBI (Settlement of Administrative and Civil Proceedings) Regulations, 2013.

SEBI has proposed new rules for settlement of administrative and civil proceedings against suspected market defaulters, excluding cases of serious violations such as insider trading and fraudulent and unfair trades.

No application will be considered if it is made after 60 days from the date of service of showcause notice issued by SEBI. The applicant has to make one application for settlement of all the proceedings where more than one proceedings arising out of the same cause of action is pending. An application which does not conform to the requirements of these regulations shall be rejected by the Board, SEBI added.

An applicant will be granted only one opportunity to submit a rectified application which conforms to the requirements of the these regulations within 15 days from the date of communication.

No application will be made, for settlement of any proceedings – if the alleged default was committed within two years from the date of the last settlement order; if the applicant has been party to two settlement orders and for proceedings arising out of non-compliance of the settlement terms of an earlier settlement order.

SEBI further said that no application will be made for settlement of proceedings if the application seeking settlement of the same alleged default has been filed earlier and withdrawn; and if an earlier application with regard to the same alleged default had been rejected by SEBI.

SEBI will constitute a high powered advisory committee for the consideration and recommendation of the terms of settlement.

The high powered advisory committee will consist of a retired Judge of a High Court and three external experts having expertise in the securities market.

These regulations may be called the Securities and Exchange Board of India (Settlement of Administrative and Civil Proceedings) Regulations, 2013. They will come into force on the date of their notification in the Gazette of India.

SEBI has invited feedback on draft regulations by October 30, 2013.
 

Advertisements

  • Save upto Rs.2.67 lakh with Pradhan Mantri Awas Yojana ...Know more
  • Now Save Rs.3150 on your Demat Account ...Click here
  • Now get IIFL Personal Loan in just 8* hours...APPLY NOW!
  • Get the most detailed result analysis on the web - Real Fast!
  • Actionable & Award-Winning Research on 500 Listed Indian Companies.