Sebi streamlines settlement norms to make process faster
Markets regulator Sebi has streamlined settlement regulations to make procedures faster and more effective. In order to save time, Sebi said instead of issuing settlement notice under the regulations, a paragraph will be included in the show cause notice informing the noticee about the option to file a settlement application.
Sebi has amended settlement regulations to implement the changes, the regulator said in a notification dated July 22.
In addition, amendments have been made to the settlement regulations to include promoters along with the Principal Officer for the purpose of calculation of the base amount.
Besides, base amount for alleged defaults relating to open offer violations, where the making of the open offer has become infructuous, has been rationalised and benchmark for certain base amount has been suitably amended.
After the acceptance of settlement terms, Sebi said an applicant will have to remit the settlement amount within 30 days from the date of receipt of the notice of demand, which may be extended by the panel of whole time members for reasons to be recorded, by 60 days.
For this, the applicant will have to file an application seeking extension of time within 30 days from the date of receipt of the demand notice.
Earlier, the applicants were required to pay the amount within 15 days from the date of receipt of the notice of demand, which was extendable by 15 days.
The Securities and Exchange Board of India (Sebi) settlement regulations, which came into force with effect from January 1, 2019, provide for the settlement of proceedings initiated or to be initiated for the contravention of securities laws.
The move comes after the board of Sebi last month approved amendments in this regard.
The experience gained in handling the settlement matters during the past one year necessitated the need to amend certain provisions of the regulations in order to streamline the settlement procedures, the regulator had said.
