Market regulator Securities and Exchange Board of India (SEBI) said the SEBI Settlement Scheme 2022 for entities related to trading in illiquid stock options has been extended to 21 January 2023, thanks to a large number of entities having shown interest in availing the scheme.
“It has been observed that during the last few days, large number of entities have shown interest in availing the Scheme. Considering the interest of entities in availing the Scheme, the competent authority has extended the period of the Scheme till 21 January 2023," SEBI said. The settlement scheme commenced on 22nd August and was to end on Monday.
On 19th August, SEBI had introduced the Settlement Scheme, 2022, which provided a one-time settlement opportunity to those entities that have executed trade reversals in the stock options segment of Bombay Stock Exchange (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/ securities appellate tribunal (SAT).
According to sources, a total of 7,000 entities had already applied under the scheme till last week. Most of the entities can settle their proceedings by paying only Rs1 lakh as a settlement amount.
This is not the first time the regulator has given the chance to the entities to settle cases. In 2020, the capital market regulator had provided a one-time settlement scheme for such entities. Initially, the scheme was available from 1st August to 31 October 2020, but later extended till 31 December 2020, in view of the large-scale disruption caused by COVID.
The advantage of participation in the scheme is that entities are not subjected to further quasi-judicial proceedings on the same matter. The settlement is also done without admission of guilt.
Over 14,000 entities had indulged in reversal trades in options which were illiquid. Reverse trades are trades in which a trader buys a particular stock and sells it back to the same person.
RBI Report Flags Large-scale Variation in Property Tax Collection across Civic Bodies
21 November 2022
It may look surprising but it is a fact that the property tax revenue of the municipal bodies in Delhi is much more than that of bigger states including Uttar Pradesh, Madhya Pradesh, Rajasthan and many other states.
Kolte-Patil Developers, 2 Other Individuals Settle Case with SEBI
Moneylife Digital Team
21 November 2022
Kolte-Patil Developers and two others on Friday settled, with markets regulator Securities and Exchange Board of India (SEBI), a case pertaining to the alleged violations of listing and disclosure rules, on payment of over Rs63 lakh...
As SEBI Strives To Fix Wrongdoing, Its Committees Have Hardly Any New Ideas To Improve Governance
19 November 2022
Indian regulators are looking rather good after the collapse of crypto exchange FTX, following a gigantic fraud. This is especially true of Shaktikanta Das, governor, the Reserve Bank of India (RBI). Even as finance ministry...
SEBI To Regulate Financial Influencers on Social Media Platforms
19 November 2022
Market regulator Securities and Exchange Board of India (SEBI) on Thursday said it is working on a set of guidelines for financial influencers, or finfluencers, giving unsolicited financial advice on social media...