3 days ago

SEBI Fast-Tracks Low-Value Settlements, Eases Rules for FPIs

India’s market regulator, SEBI, is changing how it settles some legal cases.

Cases involving less than Rs 10 lakh can now be handled through a faster process.

SEBI will calculate payments using a formula that considers the seriousness of the violation and other factors.

Wrongful gains will not be counted again in the basic penalty.

Companies and individuals will get 90 days to answer a show-cause notice.

Some entities can also apply to settle older cases during a special 90-day period.

They will have to pay 20% more than the normal settlement amount.

SEBI is also giving foreign investors access to more types of derivatives.

Those investors must leave certain commodity positions before delivery is required.

Key facts

Fast-track threshold: Settlement cases below Rs 10 lakh can bypass some internal steps and move directly to a panel of whole-time members.
Settlement formula: The SRGAM formula considers the stage of proceedings, regulatory action, gravity, aggravating factors, and mitigating factors.
Legal costs: Legal costs are added after calculating the settlement amount.
Show-cause response period: The response period increases from 60 days to 90 days.
Pre-notice settlement: Entities may apply for settlement within 60 days before a show-cause notice is issued.
Existing-case window: A one-time 90-day window will be available after implementation, with an additional 20% payment for eligible applicants.
FPI derivatives: FPIs may participate in specified non-agricultural index and non-cash-settled commodity derivative contracts, but must exit before delivery obligations arise.

financialexpress.com · 3 days ago