The Securities and Exchange Board of India (SEBI) has introduced a fourth settlement scheme for entities involved in non-genuine trading in illiquid stock options on the BSE between April 1, 2014 and September 30, 2015. According to reports from The Hindu BusinessLine, the scheme covers cases where related enforcement proceedings are pending before an adjudicating officer, the Securities Appellate Tribunal, courts or a recovery officer. The scheme has been introduced under Section 15JB of the SEBI Act, 1992, read with Regulation 26 of the SEBI (Settlement Proceedings) Regulations, 2018, providing eligible entities another opportunity to settle proceedings related to non-genuine trades executed during this period.
The settlement amount structure includes ₹1.44 lakh for one to five contracts, ₹2.88 lakh for six to 50 contracts, and ₹7.20 lakh plus ₹14,400 per contract for 51 contracts and above. As reported by The Hindu BusinessLine, for example, the settlement amount for 51 contracts will be ₹14.544 lakh. The scheme was approved by the competent authority following recommendations of the High Power Advisory Committee and was placed before the Board for information. SEBI said the modalities for making applications under the latest scheme will be announced separately, as reported by the exchange.
According to The Hindu BusinessLine, SEBI said three earlier settlement schemes for such matters were introduced in 2020, 2022 and 2024, under which a large number of concerned entities settled proceedings. The modalities for filing applications under the scheme will be announced separately, as reported by the exchange. This latest initiative represents SEBI's continued effort to provide regulatory clarity and settlement opportunities for entities facing long-pending matters before various adjudicating authorities.
