SEBI issued a circular on "Financial Disincentives for ...

New rules for financial penalties on market institutions for surveillance lapses to ensure market integrity.

Circulars SEBI

June 6, 2024

SEBI issued a circular on "Financial Disincentives for Surveillance Related Lapses" at Market Infrastructure Institutions (MIIs). MIIs play a crucial role in market integrity. SEBI can take action u/s SEBI Act, 1992 for contraventions. Surveillance is a core function of MIIs to detect market abuse. The framework introduces financial disincentives for Surveillance Related Lapses based on MII revenue and instances of lapses. SEBI will provide an opportunity for submissions before imposing disincentives. MIIs must credit the disincentives to SEBI-IPEF. Disclosure requirements are specified. The framework excludes matters with market-wide impact or affecting market integrity. It does not apply to minor procedural lapses. Effective from July 1, 2024, the framework does not limit SEBI's other enforcement actions.

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SEBI issued a circular on "Financial Disincentives for ...

New rules for financial penalties on market institutions for surveillance lapses to ensure market integrity.

Circulars SEBI

June 6, 2024

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