Briefing of Latest SEBI Settlement Scheme- 2022

After the failure SEBI settlement scheme, in 2022 because of its arrival amidst COVID-19 Pandemic, The Board was met with public demand of introducing another scheme again. Therefore, the Securities Exchange Board of India issued vide Public Notice dated 19^th August 2022, announcing the SEBI Settlement Scheme, 2022. The scheme has become functional w.e.f 22^nd August 2022 and will last till 21^st November 2022.

Reasons behind Introducing SEBI Settlement Scheme, 2022:

The main motive of the SEBI Settlement Scheme, 2022 is to benefit certain entities by letting them have an opportunity for settlement. The Entities qualifying for the same are as below: -

• The illiquid stock options segment of BSE must have been executed for reversal trades by the concerned entity.

• The entity, which has the proceedings initiated against it, is pending before a higher authority or any forum.

How to Apply for Settlement under SEBI Settlement Scheme, 2022?

The Concerned Entity may apply under the SEBI Settlement Scheme, 2022 by visiting their website, then clicking on “Settlement Scheme” under the ‘type of category’ on the portal, then proceeding to enter PAN when asked to insert and complete the action by entering Captcha.

Now the Applicant would be asked to Submit the documents which include: -

(a) An application required for settlement According to the Annexure-1 format.

(b) A copy of the Undertaking & waiver Affidavit, which must be duly paid, notarized, and stamped, as per the requirement under Annexure-2 Format

(c) A copy of the Applicant’s PAN must be Self-attested. After Submitting these Required Documents, Payment of the Settlement Application Registration Fee is to be made and now all that is left is to make Payment of the settlement Amount.

What are the Fees for Settlement Application Registration?

The fees for Application Registration under SEBI Settlement Scheme, 2022 vary for Body Corporates and Individuals. Hence, the applicable fee as per the nature of the entity is the following: -

• Body Corporates need to pay INR 25,000 + GST @ 18% Rate: and
• In the case of Individuals, they are required to pay INR 15,000 + GST @ 18% Rate

It is to note that Payment Can only be made as per the Payment modes specified by the portal.

Furthermore, the Settlement Amount needs to be appropriately established based on the number of contracts. The payment modes are fixed and will be specified on the web portal.

In Case the concerned entity has already made an Application Before-

In Case, where an entity has already made an application for Settlement before the SEBI Settlement Scheme, 2022 came into effect, then the said entity is not liable to pay the Registration fees again. They may proceed with the rest of the procedure as mentioned earlier. If the said entity is found to not have availed of the scheme as claimed, Actions would be taken against the entity as per the provisions of securities Law.

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