SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 22nd July, 2020

SECURITIES AND EXCHANGE BOARD OF INDIA (SETTLEMENT PROCEEDINGS) (AMENDMENT)
REGULATIONS, 2020

No. SEBI/LAD-NRO/GN/2020/24.— In exercise of the powers conferred by Section 1 5JB of the Securities and Exchange Board of India Act, 1992, Section 23JA of the Securities Contracts (Regulation) Act, 1956 and Section 19-IA of the Depositories Act, 1996 read with Section 30 of the Securities and Exchange Board of India Act, 1992, Section 31 of the Securities Contracts (Regulation) Act, 1956 and Section 25 of the Depositories Act, 1996, the Securities and Exchange Board of India hereby makes the following regulations to amend the Securities and Exchange Board of India (Settlement Proceedings) Regulations, 2018, namely:—

1. These regulations may be called the Securities and Exchange Board of India (Settlement Proceedings) (Amendment) Regulations, 2020.

2. They shall come into force on the date of their publication in the Official Gazette.

3. In the Securities and Exchange Board of India (Settlement Proceedings) Regulations, 2018 –

(1) In the regulation 15, in the sub-regulation (2),

(i) in clause (a),

(a) after the words “not later than” and before the words “calendar days from the date of receipt”, for the word, “fifteen”, the word “thirty”, shall be substituted;

(b) for the words, “by fifteen calendar days”, the words “by sixty calendar days, only after receipt of an application seeking extension of time within thirty days from the date of receipt of notice of demand” shall be substituted;

(ii) in the explanation to the clause (a),-

(a) the words “by way of a demand draft drawn in favour of ‘Securities and Exchange Board of India’ payable at Mumbai or” shall be omitted;

(b) after the words “or any other authorised” and before the words “mode of payment”, the word “electronic” shall be inserted;

(2) Chapter VIII, shall be omitted.

(3) In regulation 34, after sub-regulation (3), following sub-regulation, shall be inserted, –

“(4) Notwithstanding the omission of Chapter VIII, a Settlement Notice issued under regulation 18, shall be dealt with as if the Chapter VIII is still in force and continue to be dealt with accordingly.”

(4) In Schedule I, in Part – B ,

(i) the words “by way of a demand draft in favour of ‘Securities and Exchange Board of India’ Payable at Mumbai or”, shall be omitted;

(ii) after the words “or any other” and before the word “mode”, the word “electronic” shall be

(5) In Schedule II, in Chapter I, after Clause 11, following clause shall be inserted, –

“11A. The applicant shall be provided opportunity of hearing or meeting only before the Internal Committee.”

(6) In the Schedule II, in Chapter VI, in Table VI, the last row shall be substituted with the following: ‘‘

WHERE THE MAKING OF THE OPEN OFFER IS INFRUCTUOUS INFRUCTUOUS BY AN ACT OF THE ACQUIRER INFRUCTUOUS BY AN ACT OF THE COMPANY OR BY ANY OTHER REASON
RUPEES 1 CRORE OR OPEN OFFER SIZE, WHICHEVER IS HIGHER ANY AMOUNT BETWEEN RUPEES 10 LAKHS TO RUPEES 35 LAKHS;

WITH A MULTIPLIER BETWEEN 1 TO 3 AS DECIDED BY THE IC OR HPAC OR THE PANEL OF WTMS

’’

(7) In Schedule II, in Chapter VI, in Table X shall be substituted with the following table.

TABLE-X

Residuary Ba, For Each Unit Of Alleged Default For Each Applicant Or On Joint Liability Basis (As Per The Sum Of Applicable

AMOUNTS IN CASE OF JOINT APPLICANTS)
Individual
(Promoters
And
Principal
Officers
Not
Included)
(I)
Body
Corporate
& Firm (Including Promoters And
Principal
Officers In Cases
Relating
To Joint
Liability
With The Body
Corporate /Firm)
 (II)
Promote,
Principal
Officers
&
Compliance
Officers
[When Not
In II, IV-VII]
(III)
Section 15B
And 15F OF
SEBI Act
&
Similar
Defaults
(Including
Promoters
And
Principal
Officers In
Cases
Relating To
Joint
Liability
With The
Intermediary
Y)
 (IV)
Failure In
Redressing
Investor
Grievances
(Including
Promoters
And
Principal
Officers In
Cases
Relating To
Joint
Liability
With The
Intermediary/ Issuer)
(V)
(For Delay
Reduce To
1/4)
Market
Infrast-ructure
E Institution
(Including
Promoters And
Principal
Officers In
Cases Relating
To Joint
Liability With
The
Institution)
(VI)
Fund
Related
Defaults
(Including
Promoters And
Principal
Officers In Cases
Relating To Joint
Liability
With The Fund)
(VII)
BA Where:
Default Relates
To FUTP OR IT,
False/ Misleading/
Incorrect/ Incomplete Disclosures In
Offer Documents,
Failure By Market
Infrastr-ucture
Institutions To
Conduct Business
In The Required
Manner,
A Reckless Violation,
OR
A
Disgorgement / Ref
Und In Excess Of
Rupees 1 Crore
(M)
Rupees 15
Lakhs
Rupees 1 Crores
Rupees 45
Lakhs
Rupees 15
Lakhs
Rupees 30
Lakhs
Rupees 5 Crores
Rupees 33
Lakhs
OR
0.0 1% Of The Average Asset Under Manage-ment, At Time Of Violation
OR
0.5% Of The
Average Net
Worth, At
Time Of
Violation,
Whichever Is Higher
Benchmark Where Violation Involved At (M) AND, –
Such Violation
Directly Or Indirectly
(I) Resulted In
Substantial Losses To Other Persons,
(II) Created A
Significant Risk Of
Substantial Losses To Other Persons, Or
(III) Affected The
Integrity Of The
Securities Markets (N)
Rupees 60
Lakhs
Rupees 3 Crores
Rupees 2 Crores
Rupees 60
Lakhs
Rupees 80
Lakhs
Rupees 10 Crores
Rupees 60
Lakhs
OR
0.05% Of The Average Asset Under Manage-ment, At Time Of Violation
OR
0.75% Of The
Average Net
Worth, At
Time Of
Violation,
Whichever Is Higher
Residuary (O)
Rupees 3
Lakhs
Rupees 15
Lakhs
Rupees 10
Lakhs
Rupees 3 Lakhs
Rupees 6
Lakhs
Rupees 3 Crores
Rupees 15
Lakhs
OR
0.001% Of The Average Asset Under Manage-ment, At Time Of Violation
OR
0.05% Of The Average Net Worth, At Time Of Violation, Whichever Is Higher”

’’

(8) Part – B of the Schedule – III shall be omitted.

AJAY TYAGI , Chairman

[ ADVT.-III/4/Exty./123/2020-21]

Footnote:

  1. The Securities and Exchange Board of India (Settlement Proceedings) Regulations, 2018 were published in the Gazette of India on November 30, 2018 vide No. SEBI/LAD-NRO/GN/ 2018/48, with effect from 1st day of January 2019.

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