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SEBI Settlement Scheme 2020 –One time Settlement Scheme for Trade Reversal in Stock Options

Securities Exchange Board of India (SEBI) vide Public notice dated 27th July, 2020 has issued Public notice in respect of SEBI-Settlement Scheme 2020 to provide one time settlement opportunity to the entities that have executed trade reversals in the stock options segment of BSE during the period from April 1, 2014 to September 30, 2015 against whom any proceedings are pending.

Reason behind this Settlement Scheme

SEBI has conducted an analysis of the stock options segment of Bombay Stock Exchange (BSE) for the period April 1, 2014 to September 30, 2015 when SEBI came across several instances wherein a set of entities were consistently making losses by their trading in options on individual stocks which are listed on Bombay Stock Exchange (BSE).

Observations:

SEBI

Reference of Case Law

The Hon’ble SAT vide its Order dated October 14, 2019 in the matter of R S Ispat Ltd Vs SEBI, ha sinter alia directed as follows:

“…We are adjourning this matter today, so that SEBI may consider holding a LokAdalat or adopting any other alternative dispute resolution process with regard to the Illiquid Stock Options.“

Therefore SEBI has decided to come out with Settlement Scheme (“the Scheme”)

About the SEBI Settlement Scheme – 2020

sebi

FAQ’s on SEBI Settlement Scheme 2020

1. What are the Eligibility Criteria?

the entities who have executed trade reversals on the stock options segment of BSE during the period from April 1, 2014 to September 30, 2015 against whom any proceedings are pending are eligible to avail the one time settlement opportunity.

2. Validity of the Scheme?

shall commence on August 01, 2020 and end on October 31, 2020 (both days inclusive).

3. Settlement Application details?

submit a Settlement application along with an application fee of Rs. 15,000 in case of individuals and Rs. 25,000 in case of body corporates in the specified format, available on the SEBI website and also on the BSE website.

4. Mode of Payment ?

Via online platform as available on the website of SEBI

Kindly note that: after the expiry of the Scheme, entities who do not avail the one – time settlement opportunity shall be liable for action as per section 15-I of the SEBI Act, 1992 which deals with Power to adjudicate.

Link:https://www.sebi.gov.in/media/public-notices/jul-2020/public-notice-in-respect-of-sebi-settlement-scheme-2020_47150.html


Disclaimer:

IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION.

CS Lalit Rajput TaxClue
CS Lalit Rajputhttp://enlightengovernance.blogspot.com/
Company Secretary having 5 years of post-qualification experience in the Compliance Management Services industry by serving Corporates including Listed Companies, Corporate Secretarial Firms, and LLP.

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