3 days ago
SEBI Changes Settlement Rules, Approves Common Advertising Code
SEBI is the regulator that oversees India’s securities market.
It announced new rules for settling certain proceedings.
The rules include a new way to calculate settlement amounts.
Companies and other regulated entities may have a simpler process if they meet certain thresholds.
SEBI will treat wrongful gains separately from the main settlement amount.
This is intended to address concerns about counting the same gains twice.
SEBI also approved one advertising code for regulated entities.
The regulator said its other measures are meant to make compliance easier.
SEBI announced changes to its settlement proceedings framework after a board meeting in Mumbai.
The revised framework introduces a new formula for calculating settlement amounts.
Entities may use a simplified settlement process, subject to specified thresholds.
Settlement terms will include a settlement amount, disgorgement of wrongful gains where applicable, and remedial or regulatory terms.
SEBI also approved a common advertising code and other measures intended to reduce compliance burdens.
- Who
- The Securities and Exchange Board of India (SEBI).
- What
- SEBI changed its settlement proceedings framework, approved a common advertising code, and announced other compliance-related measures.
- Where
- Mumbai, where SEBI held its board meeting and announced the changes.
- When
- Thursday; the article does not provide a specific date.
- Why
- To introduce a new settlement calculation, address concerns about double counting wrongful gains, simplify settlement procedures, and reduce compliance burdens.
Key facts
- Regulator
- Securities and Exchange Board of India (SEBI)
- Settlement calculation
- A new formula will be used to calculate settlement amounts.
- Wrongful gains
- Disgorgement of wrongful gains will be separated from the calculation of the base amount, where applicable.
- Settlement terms
- Terms will include a settlement amount, disgorgement of wrongful gains where applicable, and remedial and regulatory terms.
- Simplified process
- Entities may seek to settle proceedings through a simplified process subject to specified thresholds.
- Advertising code
- SEBI approved a common advertising code for regulated entities.
- Stated objective
- The measures are intended in part to reduce the compliance burden.
Sources
Related news
SEBI Revamps Settlement Rules With Formula and Fast-Track Access
SEBI Fast-Tracks Low-Value Settlements, Eases Rules for FPIs
SEBI Settlement Overhaul Separates Fund Recovery From Settlement Payments
SEBI Weighs PMS Overhaul, Settlement Reforms and Investor Expansion
SEBI Announces Fourth Settlement Scheme for Illiquid Options
SEBI Settles Hindenburg-Linked Case Involving Five Adani Firms
Maharashtra FDA Suspends Kyani Cafe Licence After Hygiene Violations
Mumbai Slum Plan Sparks Political Storm Ahead Of October Drive
MMRDA Floats Tender For 164-Metre FOB At Gundavali Metro Station
RTI Finds No ST Professors at IIT Bombay Amid Vacancies
CBI Finds No Bank Officials’ Role in HDIL Fraud Case
