Last updated: February 15th, 2023 3:19 PM

SEBI Settlement Scheme 2022

Recently, the Securities Exchange Board of India, vide public notice dated 19^th August 2022, announced the SEBI Settlement Scheme 2022. The SEBI Settlement Scheme 2022 has got operational from 22^nd August 2022 till 21^st November 2022. The current article provides a briefing on the same.

Purpose of SEBI Settlement Scheme 2022 

The primary purpose of SEBI Settlement Scheme 2022 is to provide a settlement opportunity to the entity satisfying the following:

• The entity should have executed reversal trades in the illiquid stock options segment of BSE between the period 1^st April 2014 to 30^th September 2015 
• The entity against whom the proceedings have been initiated is pending before any forum or higher authority.

Eligibility criteria under SEBI Settlement Scheme 2022 

Following entities are eligible to apply under SEBI Settlement Scheme 2022, provided an appeal is filed and such request is pending either before the Securities Appellate Tribunal or the court –

• The entity who executed reversal trades in the illiquid stock options segment of BSE between the period 1^st April 2014 to 30^th September 2015 and the proceedings have been initiated, and the matter is pending before any of the forum or any of the authorities.
• Entity against whom order levying penalty has been passed, but the same has not been paid, and the recovery proceedings are initiated accordingly.

Applying under SEBI Settlement Scheme 2022 

By following the below steps, the entity can apply under SEBI Settlement Scheme 2022 – STEP 1 – Go to https://siportal.sebi.gov.in/intermediary/AOPaymentGateway.html; STEP 2 – Under ‘Type of Category,’ select ‘Settlement Scheme’ by using the drop-down arrow; STEP 3 – Enter PAN and Captcha. Click ‘Go’; STEP 4 – Submit the following documents [scanned copy] –

• An application for settlement as per the format prescribed under Annexure-1;
• Copy of duly paid, notarized and stamped undertaking and waivers per the format specified under Annexure-2. It should be in non-judicial stamp paper;
• Self-attested copy of the PAN of the applicant.

STEP 5 – Payment of settlement application registration fees. STEP 6 – Payment of settlement amount.

Settlement application registration fees are payable under SEBI Settlement Scheme 2022 

The entity applying under SEBI Settlement Scheme 2022 needs to pay applicable registration fees as under –

• INR 25,000 + GST @ 18% in case of body corporate; and
• INR 15,000 + GST @18% in case of individuals.

The payment of such settlement application registration fees is to be paid using only payment mode as made available by the link https://siportal.sebi.gov.in/intermediary/AOPaymentGateway.html.

The settlement amount and payment thereof –

The appropriate settlement amount under the SEBI Settlement Scheme 2022 will be determined based on the number of contracts. The settlement amount can be accessed using the link https://siportal.sebi.gov.in/intermediary/AOPaymentGateway.html. The settlement amount is to be paid using only payment mode as made available by the link: https://siportal.sebi.gov.in/intermediary/AOPaymentGateway.html.

List of documents/ details required for applying for SEBI Settlement Scheme 2022 –

1. Scanned copy of the following documents –
   1. Copy of an application for settlement as per the format prescribed under Annexure-1;
   2. Copy of undertaking and waivers as per the format prescribed under Annexure-2;
   3. Copy of PAN;
   4. Copy of income tax returns of the last three years.
2. Certified copy of the order;
3. Valid e-mail ID and mobile number.

Other details –

• If the entity already files the settlement application before the introduction of SEBI Settlement Scheme 2022, such entity is not required to pay the application fees again. Such entity should follow the below steps to conclude the matter –
  • Go to https://siportal.sebi.gov.in/intermediary/AOPaymentGateway.html;
  • Select ‘Settlement Scheme’;
  • Enter PAN; and
  • Pay the specified settlement amount.
• If the specified entity has not availed SEBI Settlement Scheme, actions as per applicable relevant provisions of securities law will be continued against such entity.
• After the closure of the settlement scheme, the competent authority, after the reconciliation of records, will pass a composite settlement order.