Sebi streamlines settlement norms to make procedure faster

The experience gained in handling the settlement matters during the past one year has necessitated the need to amend certain provisions of the regulations in order to streamline the settlement procedures, the regulator said. Accordingly, the board has decided to amend certain provisions of settlement regulations.

New Delhi, Jun 25 (PTI) Markets regulator Sebi on Thursday decided to streamline settlement regulations to make procedures faster and more effective. In order to save time, Sebi said instead of issuing settlement notice under settlement regulations, a paragraph will be included in the show cause notice, informing the noticee about the option to file a settlement application.

To this effect, the board of Sebi has approved amendment to settlement regulations, the regulator said in a statement. In addition, the board has approved some amendments to the settlement regulations including promoters to be included along with the Principal Officer for the purpose of calculation of the base amount.

It further said the base amount for alleged defaults relating to open offer violations, where the making of the open offer has become infructuous, to be rationalised and benchmark for certain base amount to be suitably amended. The Securities and Exchange Board of India (Sebi) settlement regulations, which came into force with effect from January 1, 2019 provides for the settlement of the proceedings initiated or to be initiated for the contravention of the securities laws.  The experience gained in handling the settlement matters during the past one year has necessitated the need to amend certain provisions of the regulations in order to streamline the settlement procedures, the regulator said.

Accordingly, the board has decided to amend certain provisions of settlement regulations. In addition, the board has approved amendments to PIT (Prohibition of Insider Trading) Regulations.  The amendments include maintaining a structured digital database containing nature of unpublished price sensitive information, the names of persons who have shared the information, automation of the process of filing disclosures to stock exchanges and restriction on trading window.

Further, entities would have to file the non-compliances of code of conduct with the stock exchanges and amounts if any collected for such non-compliances would  be credited to Investor Protection Education Fund administered by Sebi. The board also approved Sebi's annual report 2019-20 and the same would  be submitted to the central government.

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