Under the new norms, entities involved in cases of default proceedings barring cases of insider trading, employing manipulative practices and illegal raising of public money may apply for settlement
GN Bureau | October 15, 2013
The markets watchdog securities and exchange board of India (Sebi) has come out with new norms for settling administrative and civil disputes against defaulters barring cases of insider trading, employing manipulative practices and illegal raising of public money.
According to the consultation paper on the draft Sebi (Settlement of Administrative and Civil Proceedings) Regulations, 2013 released by the markets watchdog, an entity involved in a case barring those listed as exceptions, can file a settlement plea within 60 days of the show cause notice served by Sebi. However, Sebi has clarified that the settlement facility does not exist with entities which have already been part of two earlier settlements.
Listing out a detailed number of conditions under which an entity cannot apply for settlement, the regulator has also said that the new settlement facility would not apply to cases that are being tried in any court or tribunal. This leaves out any hope for the Sahara group of companies to benefit by stalling their case and applying for a settlement.
Also, an entity will not be allowed to apply for a settlement if he/she has applied for a settlement in the last two years.
In order to settle a case, an entity may be required to pay a settlement amount and other related costs, voluntary suspending registration of the entity, and finally, winding up of business.
In the consultation paper, Sebi has also mentioned that a high powered advisory committee will be set-up for deciding the settlement terms. Further, the quorum of the committee would be three members.
"The high powered advisory committee shall consist of a retired Judge of a High Court and three external experts having expertise in the securities market or for matters connected therewith or incidental thereto," Sebi said.
The regulator has invited suggestions from the general public by October 30, 2013.
An underground rapper who grew up on Mumbai streets, Divine spins his music around his environment and poverty. His breakout single, ‘Meri Gully Mein’, along with fellow rapper Naezy caught Bollywood’s attention. The Hindi film ‘Gully Boy’ is inspired by their lives and gr
Anil Swarup, an IAS officer of Uttar Pradesh cadre who retired in 2018, is a model bureaucrat who retained his optimism right till the end of service and exemplified dedication and commitment. His excitement at the opportunities that a job in the IAS provided is evident on every page of his new book publis
The question of reform of the civil services has been debated extensively at all levels at least over the last five to six decades after independence. Indeed, it was soon perceived that the Indian Administrative Service (IAS) may not be well equipped to deal with the problems of an emerging developing coun
Shouting vengeance at all and sundry while wriggling out of holes of our own making seems to be our very special national characteristic. Some recent instances are illustrative of this attribute. A number of business tycoons with thousands of crores of unresolved debts have fled abroad with the government
The Central Bureau of Investigation (CBI) came into existence, based on a Resolution of the home ministry, dated April 1, 1963 – a sheer coincidence that it also happens to be April Fool’s day. Over the past few months, we have seen the CBI live up to its founding day with great zeal, being i
Gujarat was passing through a turbulent phase in the 1980s. The decade began middle class agitations against new reservation policies, and the caste friction turned communal under the watch of chief minister Madhavsinh Solanki, alienating majority of urban population on both counts. The ground was ripe for