Additional Penalty for Repeated Delivery Default by a seller/buyer to be imposed @ 3 % of the value of the delivery default
SEBI had stipulated delivery default norms vide Circular SEBI/HO/CDMRD/DRMP/CIR/P/2021/35 dated March 23, 2021.
In order to put in place a suitable deterrent mechanism to address instances of repeated delivery defaults and to further strengthen the delivery mechanism and to ensure market integrity, SEBI has decided to impose additional penalty for repeated delivery default.Â
It has been provided that in the case of repeated default by a seller or a buyer, for each instance of repeated default, an additional penalty shall be imposed, which shall be 3 % of the value of the delivery default.
The repeated default has been defined as an event, wherein a default on delivery obligations takes place 3 times or more during a six months period on a rolling basis.
The penalty levied shall be transferred to Settlement Guarantee Fund (SGF) of the Clearing Corporation. This penalty is effective after one month from the date of issuance of SEBI circular.
Read SEBI Circular SEBI/HO/CDMRD/DRMP/CIR/P/2021/619 Click Here >>
- Limitation u/s 34 of Arbitration Act commences on disposal of application u/s 33 by Arbitral Tribunal – SC
- Case remanded in absence of finding if disallowance u/s 40A(3) covered by Rule 6DD
- For investment in share capital, source of investment is outside the control of the investee company
- ICAI issues revised Code of Ethics (13th edition)- Applicable Dates
- Modified Norms for Nomination in Demat Accounts and Mutual Fund Folio
