SEBI vide its notification dated 14 January 2022, has amended the Securities and Exchange Board of India (Settlement Proceedings) Regulations, 2018 (“Settlement Regulations”). The amendment is intended to rationalise the norms on settlement proceedings and has come into effect from the date of its gazette publication.
In September 2021, SEBI had initiated a consultative process to streamline and further harmonise the Settlement Regulations. The proposed amendments were subsequently approved by SEBI in its board meeting held on 28 December 2021.
The amendment notification has reduced the timeline within which settlement applications may be filed. Under the earlier regulatory framework, a settlement application could be filed within 60 (sixty) days from date of receipt of show cause notice, with a possible extension of 120 (one hundred and twenty) days. Pursuant to the amendment settlement applications may be filed only within 60 (sixty) days and no extension may be granted.
Further, the time period for submission of the revised settlement terms form has been rationalised to 15 (fifteen) days, from an earlier regime of 10 (ten) + 20 (twenty) days. Further, any non-compliance of condition precedent(s) for settlement, has also been added as a ground for rejection of the settlement application.
Please click here to read the amendment notification.
For further information, please contact:
Souvik Ganguly, Partner, Acuity Law