SEBI Settlement Scheme 2022 with faq’s

Securities Exchange Board of India (SEBI) vide Public notice dated 19th August, 2022 has  issued Public notice in respect of SEBI-Settlement Scheme 2022.

  • The purpose:

to provide an opportunity for settlement to the entities who have executed reversal trades in the illiquid stock options segment of BSE between

  1. April 1, 2014 to September 30, 2015,
  2. and against whom proceedings have been initiated and
  3. are pending before any forum or authority, viz. Courts/ Securities Appellate Tribunal (“SAT”), Adjudicating Officer and Recovery Officer (provided an appeal has been filed and the same is pending before the SAT/Court).
  • Commencement:

The Scheme shall commence on August 22, 2022 and end on November 21, 2022 (both days inclusive) or such other date as approved by the Competent Authority.

  • Eligibility criteria:
  1. The Scheme would be applicable in respect of the entities that have executed reversal trades in the illiquid stock options segment of BSE between April 1, 2014 and September 30, 2015 and
  • against whom proceedings have been initiated and are pending before any forum or authority, viz. Courts/ SAT, Adjudicating Officer and Recovery Officer (provided an appeal has been filed and the same is pending before the SAT/Court).
  • Entities against whom orders have been passed levying penalty that has not been paid and
  • against whom recovery proceedings have been initiated, may be eligible for the scheme only if an appeal is filed and the same is pending before the Courts/ SAT.
  • How to Avail Settlement Scheme

An entity desirous of availing settlement under the Scheme would be required to submit a settlement application along with an application registration fee of Rs. 25,000/- + GST @18% in case of body corporates and Rs. 15,000/- + GST @18% in case of individuals in the specified format, available on the respective websites of SEBI and BSE.

Q. 2. In case a settlement application has already been filed in respect of the Show Cause Notice issued by the Adjudicating Officer before the Scheme was introduced and is pending, should another application be filed?

A. No. Such applicants may visit the link given below, enter their PAN and pay the specified settlement amount to settle the proceedings. They do not need to pay any application fee. Such applicants would however be required to upload the requisite documents as mentioned at Answer 4 below using the following link. https://siportal.sebi.gov.in/intermediary/AOPaymentGateway.html

Q. 3. Where can one access the information regarding the Scheme?

A. Information regarding the Scheme is available at the website of SEBI (www.sebi.gov.in) and may also be accessed using the following link: https://www.sebi.gov.in/media/public-notices/aug-2022/public-notice-in-respect-of-sebi-settlementscheme-2022_62175.html

Q. 4. How to file a settlement application under the Scheme?

A. An entity desirous of filing a settlement application under the Scheme is required to take the following sequential actions:

a) Click on the following link: https://siportal.sebi.gov.in/intermediary/AOPaymentGateway.html

b) Select “Settlement Scheme” option from the drop down menu of “Type of Category”, enter the PAN, Captcha and click on “Go”

c) Online submission of the following scanned documents:

i) A copy of duly notarised and stamped undertakings and waivers in nonjudicial stamp paper duly paid as per Annexure -2.

ii) A self-attested copy of the PAN Card of the applicant.

iii) An application for settlement as per Annexure -1.

d) Payment of the non-refundable settlement application registration fee of Rs. 25,000/- in case of body corporates and Rs. 15,000/- in case of individuals along with GST @ 18%. e) Payment of the settlement amount as displayed in respect of the applicant.

Q. 5. What is the settlement amount applicable for me?

Ans: Under the Scheme, the settlement amount applicable, determined on the basis of number of contracts, may be accessed by using the following link: https://siportal.sebi.gov.in/intermediary/AOPaymentGateway.html

Q. 6. What shall be the mode of payment of the application fee/settlement amount mentioned above?

A. Applicant shall make the online payment of the application fee/settlement amount using the following link: https://siportal.sebi.gov.in/intermediary/AOPaymentGateway.html

Q. 7. When will the settlement order be passed under the Scheme?

A. Subsequent to the closure of the Scheme, a composite settlement order shall be passed by the competent authority after reconciliation of records.

Q. 8. Should one wait till the last day for filing the settlement application under the Scheme?

A. It is advisable to file a settlement application under the Scheme at the earliest in order to avoid last minute rush. The Scheme would be operational from August 22, 2022 till November 21, 2022.

Q. 9. What action would be taken, if the Scheme is not availed?

A. Upon conclusion of the Scheme, 2022, actions as per the relevant provisions of securities laws shall be continued against the entities.

In case of any query/technical issues with respect to the Scheme, 2022, you may reach us at scheme2022@sebi.gov.in . You may also contact helpline number 022-2644 9333 between 02:00 pm to 04:00 pm between Monday to Friday (excluding public holidays).

Disclaimer:  Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

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