New Delhi, Capital markets regulator Sebi on Thursday launched the beta version of the settlement calculator to simplify the process of arriving at the indicative settlement amount and provide greater transparency in the system.
This settlement calculator includes fields from which the applicant can identify the terms of the violation. It also enables the applicant to make appropriate choices with respect to its past regulatory track record based on the details of SEBI's actions as well as other proceedings ongoing on the day of filing of the settlement application.
Additionally, a user-friendly guide video has been included in the Settlement Calculator to ease understanding of the process of arriving at the indicative settlement amount.
As part of the settlement mechanism, an alleged wrongdoer can settle the case pending with SEBI by paying a settlement fee without admitting fault or denying the offence."In order to simplify the process of arriving at the indicative settlement amount and provide greater transparency in terms of the parameters prescribed in the SEBI (Settlement Proceedings) Regulations, 2018, SEBI has launched the Settlement Calculator (Beta Version)." the regulator said in a statement.
The Settlement Amount (SA) will include Indicative Amount (IA) based on factors with reference to the guidelines and settlement regulations issued by SEBI.
Under the guidelines, IA will start at a minimum of Rs 3 lakh for first-time applicants and Rs 7 lakh for others. “First time applicant” is one who has a prior order or agreement with SEBI.Further, the indicative amount will be calculated per default considering the inspection report, inquiry report or orders of the relevant authorities.
The IA will be adjusted using Proceeding Conversion Factor (PCF) depending on the stage of the case. If a business changes structure or management, its records apply to the new entity. In addition, special considerations include bankruptcy and management changes.
SEBI said if an entity self-reports a default before the notice is issued, it gets a lower PCF.If SEBI's Internal Committee, or the High Powered Advisory Committee (HPAC or Panel of Whole-Time Members (WTM)) observes individual defaults, they can revise the fee. They can accept, reject or adjust an application and settle the amount on a case to case basis. Specific.
For corporate applicants, the settlement amount may be collected from authorities responsible for investor protection.
Additionally, SEBI said special rules apply for specific defaults not covered by the guidelines, thereby providing flexibility in determining the settlement amount.
"In case of more than one proceeding arising out of the same cause of action against the applicant, the IA will be increased by 20 per cent, for non-disclosure under certain rules, the principal amount may be reduced," Sebi said. Could."Up to 75 percent.
This settlement calculator includes fields from which the applicant can identify the terms of the violation. It also enables the applicant to make appropriate choices with respect to its past regulatory track record based on the details of SEBI's actions as well as other proceedings ongoing on the day of filing of the settlement application.
Additionally, a user-friendly guide video has been included in the Settlement Calculator to ease understanding of the process of arriving at the indicative settlement amount.
As part of the settlement mechanism, an alleged wrongdoer can settle the case pending with SEBI by paying a settlement fee without admitting fault or denying the offence."In order to simplify the process of arriving at the indicative settlement amount and provide greater transparency in terms of the parameters prescribed in the SEBI (Settlement Proceedings) Regulations, 2018, SEBI has launched the Settlement Calculator (Beta Version)." the regulator said in a statement.
The Settlement Amount (SA) will include Indicative Amount (IA) based on factors with reference to the guidelines and settlement regulations issued by SEBI.
Under the guidelines, IA will start at a minimum of Rs 3 lakh for first-time applicants and Rs 7 lakh for others. “First time applicant” is one who has a prior order or agreement with SEBI.Further, the indicative amount will be calculated per default considering the inspection report, inquiry report or orders of the relevant authorities.
The IA will be adjusted using Proceeding Conversion Factor (PCF) depending on the stage of the case. If a business changes structure or management, its records apply to the new entity. In addition, special considerations include bankruptcy and management changes.
SEBI said if an entity self-reports a default before the notice is issued, it gets a lower PCF.If SEBI's Internal Committee, or the High Powered Advisory Committee (HPAC or Panel of Whole-Time Members (WTM)) observes individual defaults, they can revise the fee. They can accept, reject or adjust an application and settle the amount on a case to case basis. Specific.
For corporate applicants, the settlement amount may be collected from authorities responsible for investor protection.
Additionally, SEBI said special rules apply for specific defaults not covered by the guidelines, thereby providing flexibility in determining the settlement amount.
"In case of more than one proceeding arising out of the same cause of action against the applicant, the IA will be increased by 20 per cent, for non-disclosure under certain rules, the principal amount may be reduced," Sebi said. Could."Up to 75 percent.
