SEBI Announces Settlement Scheme for 150 Stockbrokers in Illiquid Stock Options on BSE

Moneylife Digital Team 28 November 2022

Market regulator Securities and Exchange Board of India (SEBI) has decided to introduce a settlement scheme for 150 stockbrokers against whom enforcement proceedings have been approved or initiated and are pending for executing trades in illiquid stock options at BSE.

"The terms and conditions of the scheme shall be available on the respective websites of SEBI and BSE on 19 December 2022. The scheme shall commence on 19 December 2022 and end on 19 January 2023 (both days inclusive) or such other date as approved by the competent authority," SEBI says in a release.

The earlier scheme introduced by SEBI in August for entities related to trading in illiquid stock options has been extended to 21 January 2023.

On 19th August, SEBI had introduced the settlement scheme, which provided a one-time settlement opportunity to entities that have executed trade reversals in the stock options segment of BSE during the period from 1 April 2014 to 30 September 2015 and against whom adjudication proceedings were initiated and were pending before any forum or authority.

Entities against whom orders have been passed levying penalty that has not been paid and against whom recovery proceedings have been initiated were eligible for the scheme only if an appeal is filed and it is pending before the courts or the securities appellate tribunal (SAT).

According to sources, a total of 7,000 entities had already applied under the scheme until last week. Most entities can settle their proceedings by paying only Rs1 lakh as a settlement amount. (Read: SEBI Extends One-time Stock Settlement Scheme on Illiquid Option Cases to 21st January amid Good Response)

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