Regulation 42 - Power to relax strict enforcement of the regulations - Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021.

Power to relax strict enforcement of the regulations. 42 . (1) The Board may, in the interest of investors or for the development of the securities market, relax the strict enforcement of any requirement of these regulations, if the Board is satisfied that- a) the requirement is procedural in nature; or b) any disclosure requirement is not relevant for a particular class of industry or company; or c) the non-compliance was caused due to factors beyond the control of the acquirer. (2) For seeking relaxation under sub-regulation (1), the acquirer or the company shall file an application with the Board, supported by a duly sworn affidavit, providing details of such relaxation of the regulations and the grounds on which the relaxation has been sought. (3) The acquirer or the company, as the case may be, shall along with the application referred to under sub-regulation (2) pay a non- refundable fee of rupees one lakh, by way of direct credit in the bank account through electronic modes including payment gateways or such other mode allowed by the Reserve Bank of India. (4) The Board may also exempt any person or class of persons from the operation of all or any of the provisions of these regulations for a period as may be specified but not exceeding twelve months, for furthering innovation 1 [ **** ] relating to testing new products, processes, services, business models, etc. in live environment of regulatory sandbox in the securities markets. (5) Any exemption granted by the Board under sub-regulation (5) shall be subject to the applicant satisfying such conditions as may be specified by the Board including conditions to be complied with on a continuous basis. Explanation,- For the purposes of these regulations, regulatory sandbox means a live testing environment where new products, processes, services, business models, etc. may be deployed on a limited set of eligible customers for a specified period of time, for furthering innovation in the securities market, subject to such conditions as may be specified by the Board. ************** NOTES:- 1. Omitted vide Notification No. SEBI/LAD-NRO/GN/2021/30 dated 03-08-2021 before it was read as in technological aspects