Sep 30, 2020Amendments to SEBI Settlement Proceedings Regulations
SEBI amended the SEBI (Settlement Proceedings) Regulations, 2018 on July 22, 2020, with effect from the same date, as follows:
i. Applicants will now have 30 (instead of 15) days from the date of receipt of the notice of demand to remit the settlement amount forming part of the settlement terms, which may be extended by the panel of Whole Time Members by 60 (instead of 15) days upon application by the settlement application (if made within the 30 day period);
ii. SEBI has deleted the provision enabling it to issue settlement notice to afford the recipient to file a settlement application prior to issuance of a show cause notice. From the agenda of the SEBI board meeting dated June 25, 2020, it appears that SEBI now proposes to include a paragraph in the show cause notice itself informing the noticee regarding the option to file a settlement application;
iii. SEBI made various amendments to the guidelines for arriving at settlement terms and has provided that the applicant will be provided opportunity of hearing or meeting only before the internal committee.