Introduction: The Securities and Exchange Board of India (SEBI) has recently introduced the Securities and Exchange Board of India (Settlement Proceedings) (Second Amendment) Regulations, 2023. These amendments bring important changes to the existing regulations governing settlement proceedings related to securities and exchanges.
Analysis: The SEBI (Settlement Proceedings) Amendment Regulations, 2023, empower the Panel of Whole Time Members to handle specified proceedings, whether ongoing or proposed, based on approved settlement terms. This allows for a streamlined and efficient approach to disposing of proceedings, enhancing the regulatory process.
The amendments, under Section 15JB 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, reflect SEBI’s commitment to refining settlement proceedings and strengthening its regulatory framework.
Conclusion: The introduction of the SEBI (Settlement Proceedings) Amendment Regulations, 2023, underscores SEBI’s dedication to optimizing the settlement process in the securities and exchanges domain. By enabling the Panel of Whole Time Members to resolve specified proceedings through approved settlement terms, SEBI aims to enhance efficiency, transparency, and effectiveness in the regulatory landscape.
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SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 9th August, 2023
SECURITIES AND EXCHANGE BOARD OF INDIA (SETTLEMENT PROCEEDINGS) (SECOND AMENDMENT) REGULATIONS, 2023
No. SEBI/LAD-NRO/GN/2023/142.—In exercise of the powers conferred by Section 15JB 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 further 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) (Second Amendment) Regulations, 2023.
2. They shall be deemed to have come into force from January 17, 2023.
3. In the Securities and Exchange Board of India (Settlement Proceedings) Regulations, 2018, in regulation 23, after sub-regulation 2, following sub-regulation shall be inserted-
“(2A) In case of specified proceedings which may be initiated or are proposed to be initiated, the Panel of Whole Time Members shall dispose of such proceedings on the basis of the approved settlement terms.”
BABITHA RAYUDU, EXECUTIVE DIRECTOR
[ADVT.-III/4/Exty./339/2023-24]
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.
2. The Securities and Exchange Board of India (Settlement Proceedings) Regulations, 2018 were subsequently amended on: –
i. 22nd July 2020 by the Securities and Exchange Board of India (Settlement Proceedings) (Amendment) Regulations, 2020 vide No. SEBI/LAD-NRO/GN/2020/24.
ii. 14th January, 2022 by the Securities and Exchange Board of India (Settlement Proceedings) (Amendment) Regulations, 2022 vide No. SEBI/LAD-NRO/GN/2022/62.
iii. 17th January, 2023 by the Securities and Exchange Board of India (Settlement Proceedings) (Amendment) Regulations, 2023 vide No. SEBI/LAD-NRO/GN/2023/118.
