Regulation 14A - Summary Settlement Procedure - Securities and Exchange Board of India (Settlement of Administrative and Civil Proceedings) Regulations, 2014

1 [CHAPTER VIA Summary Settlement Procedure Summary Settlement Procedure 14A. (1) Notwithstanding anything contained in Chapter VI, before initiating any specified proceeding the Board may issue a notice of settlement in the format as specified in Schedule-III, calling upon the noticee to file a settlement application in respect of the specified proceeding(s) to be initiated, upon payment of the settlement amount and/or furnishing an undertaking in respect of other non-monetary terms or compliance with other non-monetary terms, as may be specified in the settlement notice in respect of the following alleged defaults,- i. Late filing of returns, report, document, etc.; ii. Delay in making disclosures; iii. Non-disclosure in relation to companies exclusively listed on regional stock exchanges which have exited; iv. Failure to make disclosures in the prescribed formats; v. Delay in compliance of any of the requirements of law or with directions issued by the Board; vi. Such other violations as may be determined by the Board. Provided that, the specified proceeding(s) shall not be settled under this Chapter, if in the opinion of the Board, the applicant has failed to make a full and true disclosure of facts or failed to co-operate to the satisfaction of the Board: Provided further that, notwithstanding anything contained in the notice of settlement , the Board shall have the power to modify the enforcement action to be brought against the noticee and the notice of settlement shall not confer any right upon the noticee to seek settlement or avoid any enforcement action. (2) The noticee may within thirty calendar days from the date of receipt of the notice of settlement,- (a) file a settlement application in the Form specified in Part-A of the Schedule-I alongwith non-refundable application fee as specified in Part-B and the undertakings and waivers as specified in Part-C of the Schedule-I; (b) remit the settlement amount as specified in the notice of settlement; and (c) comply or undertake to comply with other non-monetary terms as specified in the notice of settlement, as the case may be. Provided that, in case of any discrepancy in calculation of settlement amount specified in the notice of settlement, the noticee may seek rectification of the same at the time of filing the settlement application and in such cases the decision of the Board shall be final and remittance shall be done within thirty calendar days from the date of receipt of the decision of the Board. Provided further that, the Board may for reasons to be recorded, grant extension of time not exceeding a further period of fifteen calendar days for filing of the settlement application, remittance of the settlement amount and/or furnishing an undertaking in respect of any of the non-monetary terms or compliance with any of the non-monetary terms specified in the notice of settlement. (3) The Board upon being satisfied with the remittance of settlement amount and undertaking furnished in respect of non-monetary terms or compliance with non-monetary terms, if any specified in the settlement notice, shall pass an order of settlement under regulation 15. ] ******** 1 Inserted vide the Securities and Exchange Board of India (Settlement of Administrative and Civil Proceedings) (Second Amendment) Regulations,2017 w.e.f. 27.12.2017.