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 >>
- HC awarded interest @ 12% p.a. on excess excise duty refunded after twelve years
- NSDL latest e-TDS TCS RPU Version 5.8 and FVU 9.03 applicable from 23rd January 2026 – Download
- Assessee bound to deduct TDS u/s 194I and 194J on the provisions made in accounts
- A Notification acquires force of law only upon its publication in Official Gazette – SC
- Case remitted to verify claim of RTO liaisoner that cash deposited belonged to vehicle owners
