Securities and Exchange Board of India (Settlement Proceedings) Regulations, 2018

SEBI/LAD-NRO/GN/2018/48 · 2024-11-28 · Securities and Exchange Board of India

Summary

This part comprises Chapters I to III of the Securities and Exchange Board of India (Settlement Proceedings) Regulations, 2018, as amended up to November 28, 2024, made under Section 15JB of the SEBI Act, 1992 and related provisions and coming into force on January 1, 2019. It defines terms including alleged default, securities laws and specified proceedings and prescribes the procedure for filing settlement applications including fees, undertakings, disclosures and a sixty-day limitation period for proceedings pending before the Board. It delineates the scope of settlement by barring applications where earlier applications were rejected, investigations are incomplete or recovery is pending and by conferring discretion on the Board to refuse settlement for market-wide impact, investor losses, integrity concerns or where the applicant is a wilful defaulter or fugitive economic offender. This part lays down grounds for rejection of settlement applications, the right of the Panel of Whole Time Members to reject without Internal Committee or High Powered Advisory Committee examination, and the procedure and consequences of withdrawal including a fifty percent increase for re-applicatio

Text

These regulations may be called the Securities and Exchange Board of India (Settlement Proceedings) Regulations, 2018.

They shall come into force on the 1st day of January 2019.

"alleged default" means an alleged or probable contravention of any provision of the securities laws;

"securities laws" means the Act, the Securities Contract (Regulations) Act, 1956 (42 of 1956), the Depositories Act,1996 (22 of 1996), the relevant provisions of any other law to the extent it is administered by the Board and the relevant rules and regulations made thereunder;

"specified proceedings" means the proceedings that may be initiated by the Board or have been initiated and are pending before the Board or any other forum, for the violation of securities laws, under Section 11, Section 11B, Section 11D, sub-Section (3) of Section 12 or Section 15-I of the Act or Section 12A or Section 23-I of the Securities Contracts (Regulation)Act, 1956 or Section 19 or Section 19H of the Depositories Act, 1996, as the case may be;

A person against whom any specified proceedings have been initiated and are pending or may be initiated, may make an application to the Board in the Form specified in Part-A of the Schedule-I.

The application made under sub-regulation (1) shall be accompanied by a non-refundable application fee as specified in Part-B of Schedule I and the undertakings and waivers as specified in Part-C of Schedule-I:

The applicant shall make full and true disclosures in the application in respect of the alleged default(s):

The applicant shall make one application for settlement of all the proceedings that have been initiated or may be initiated in respect of the same cause of action.

An application that is not complete in all respects or does not conform to the requirements of these regulations shall be returned to the applicant.

The applicant whose application has been returned under sub- regulation (5) may, within fifteen days from the date of communication from the Board, submit the complete and revised application that conforms to the requirements of these regulations:

Where the applicant is an association or a firm or a body corporate or a limited liability partnership, the application and undertakings and waivers shall be executed by the person in charge of, and responsible for the conduct of the business of such firm or association or body corporate and the same shall bind the firm or association, the body corporate and any officer who is in default.

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Source: SecMarx — Securities and Exchange Board of India (Settlement Proceedings) Regulations, 2018. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.