Direct Taxes Professionals Association (DTPA) Representation Committee had demanded extension of date for Sebi Settlement Scheme, and the extension has been ultimately granted upto 31st December, 2020.

NK Goyal, President, DTPA and Adv Mamta Binani, former President, ICSI have welcomed the extension.

Adv Narayan Jain, Chairman DTPA Representation Committee  and a Corporate Lawyer has urged the SEBI to review the Scheme and lower the settlement fee. The minimum settlement fee as prescribed is Rs. 5 Lakhs which is prohibitive in small cases. Mr. Jain suggested that there should be no prosecution in smaller cases where upto 5 transactions were done. There is widespread resentment as the transactions are of the period 2014-2015 and so long BSE and SEBI did not find any fault with such alleged reversal tradings. The matter being very old some people have questioned the justification of sending Notices by SEBI now. Therefore the scheme needs a fresh look altogether in the interest of justice, added Mr Jain.


Text of  SEBI Public notice in respect of Extension of the SEBI Settlement Scheme 2020

Public Notice

Extension of the Settlement Scheme 2020

1. Vide public notice dated July 27, 2020, SEBI has introduced the Settlement Scheme (“the Scheme”) which proposes to provide a onetime settlement opportunity to those entities that have executed trade reversals in the stock options segment of BSE during the period from April 01, 2014 to September 30, 2015 and against whom enforcement proceedings have been approved by SEBI.

2. The period of the Scheme commenced on August 01, 2020 and was to end on October 31, 2020.

3. In view of the large scale disruption caused by the Covid-19 pandemic, many representations were received by SEBI, seeking extension of the period of the Scheme.

4. Upon consideration of the same, the competent authority has approved the extension of the period of the Scheme till December 31, 2020.


October 31, 2020


The text of Scheme is available at :

FAQ on SEBI’s Settlement Scheme 2020 by SEBI : FAQs on the SEBI Settlement Scheme, 2020

FAQ on SEBI’s Settlement Scheme 2020 by ICAI : FAQs on One Time SEBI Settlement Scheme, 2020

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