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.
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 >>
- Under NI Act if cheque signed by drawer is given to payee ’reverse onus clause’ u/s 139 attracted
- High Court grants bail to Income Tax Officer accused of demanding bribe of Rs. 25000/-
- ICAI bans Twelve Chartered Accountants being guilty of professional misconduct
- Cash deposit in demonetisation held exempt assessee being resident of Arunachal Pradesh
- ITAT deleted addition made on presumption – there cannot be loss in restaurant business