SEBI (Settlement Proceedings) Amendment Regulations, 2023 | SEBI Empowers Panel Of Whole Time Members For Settlement Proceedings

According to the notification, Settlement Proceedings will now be overseen and managed by a Panel of Whole Time Members. This amendment marks a significant shift in how settlement proceedings are conducted within SEBI's regulatory framework.

The authority to enact this amendment was derived from various sections within different acts. The Securities and Exchange Board of India (SEBI) has exercised its powers under Section 15JB of the Securities and Exchange Board of India Act, 1992, Section 23JA of the Securities Contracts (Regulation) Act, 1956, and Section 19-IA of the Depositories Act, 1996. This amendment has been introduced in conjunction with Section 30 of the Securities and Exchange Board of India Act, 1992, Section 31 of the Securities Contracts (Regulation) Act, 1956, and Section 25 of the Depositories Act, 1996.

The notification mentions:

“In the Securities and Exchange Board of India (Settlement Proceedings) Regulations, 2018, in regulation 23, after sub-regulation 2, following sub-regulation shall be inserted-

“(2A) In case of specified proceedings which may be initiated or are proposed to be initiated, the Panel of Whole Time Members shall dispose of such proceedings on the basis of the approved settlement terms.”

The Securities and Exchange Board of India (Settlement Proceedings) Regulations, 2018 were published in the Gazette of India on 30.11.2018 vide Notification No. SEBI/LAD-NRO/GN/ 2018/48, with effect from 01.01.2019. It was subsequently amended in 2020, 2022 and 2023.

Click here to Read/Download Notification