Regulation 9 - Settlement terms - Securities and Exchange Board of India (Settlement Proceedings) Regulations, 2018

CHAPTER IV TERMS OF SETTLEMENT Settlement terms. 9. (1) The settlement terms may include a settlement amount and/or non-monetary terms, in accordance with the guidelines specified in Schedule-II . (2) The non-monetary terms may include the following: (a) Suspension or cessation of business activities for a specified period; (b) Exit from Management; (c) Disgorgement on account of the action or inaction of the applicant; (d) Refraining from acting as a partner or officer or director of an intermediary or as an officer or director of a company that has a class of securities regulated by the Board, for specified periods; (e) Cancel securities and reduce holdings where the securities are issued fraudulently, including bonus shares received on such securities, if any, and reimburse any dividends received, etc.; (f) Lock-in of securities; (g) Implementation of enhanced policies and procedures to prevent future securities laws violations as well as agreeing to appoint or engage an independent consultant to review internal policies, processes and procedures; (h) Provide enhanced training and education to employees of intermediaries and securities market infrastructure institutions; (i) Submit to enhanced internal audit and reporting requirements 1 [ ; ] 2 [ (j) Restraining from accessing the securities market and/or prohibiting from buying, selling or otherwise dealing in securities, directly or indirectly and associating with the securities market in any manner for a specific period. ] (3) The settlement amount, excluding the legal costs and disgorged amount, shall be credited to the Consolidated Fund of India. (4) The application fee referred to in sub-regulation (2) of regulation 3 and the legal costs, if any, forming part of the settlement amount shall be credited to the Securities and Exchange Board of India General Fund. Explanation. Legal costs shall include liquidated costs, as may be determined by the Board, in respect of costs for obtaining appropriate orders from the Tribunal or Court under sub-regulation (2) of regulation 24 3 [ and include other expenses incurred by the Board in any other proceeding before any Court or Tribunal in respect of such application ] . (5) The amount of profits made or losses avoided by the applicant that may be disgorged as part of the settlement terms, shall be credited to the Investor Protection and Education Fund. ************* NOTES:- 1. Substituted vide Notification No. SEBI/LAD-NRO/GN/2022/62 dated 14-01-2022 before it was read as . 2. Inserted vide Notification No. SEBI/LAD-NRO/GN/2022/62 dated 14-01-2022 3. Inserted vide Notification No. SEBI/LAD-NRO/GN/2022/62 dated 14-01-2022