Securities and Exchange Board of India (Settlement Proceedings) (Amendment) Regulations, 2020
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 22nd July, 2020
Securities and Exchange Board of India (Settlement Proceedings) (Amendment) Regulations, 2020
No. SEBI/LAD-NRO/GN/2020/24.—In exercise of the powers conferred by 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 read 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 Securities and Exchange Board of India hereby makes the following regulations to amend the Securities and Exchange Board of India (Settlement Proceedings) Regulations, 2018, namely:—
1.These regulations may be called the Securities and Exchange Board of India (Settlement Proceedings) (Amendment) Regulations, 2020.
2. They shall come into force on the date of their publication in the Official Gazette.
3. In the Securities and Exchange Board of India (Settlement Proceedings) Regulations, 2018 –
(1) In the regulation 15, in the sub-regulation (2),
(i) in clause (a),
(a) after the words “not later than” and before the words “calendar days from the date of receipt”, for the word, “fifteen”, the word “thirty”, shall be substituted;
(b) for the words, “by fifteen calendar days”, the words “by sixty calendar days, only after receipt of an application seeking extension of time within thirty days from the date of receipt of notice of demand” shall be substituted;
(ii) in the explanation to the clause (a),-
(a) the words “by way of a demand draft drawn in favour of ‘Securities and Exchange Board of India’ payable at Mumbai or” shall be omitted;
(b) after the words “or any other authorised” and before the words “mode of payment”, the word “electronic” shall be inserted;
(2) Chapter VIII, shall be omitted.
(3) In regulation 34, after sub-regulation (3), following sub-regulation, shall be inserted, –
“(4) Notwithstanding the omission of Chapter VIII, a Settlement Notice issued under regulation 18, shall be dealt with as if the Chapter VIII is still in force and continue to be dealt with accordingly.”
(4) In Schedule I, in Part –B ,(i) the words “by way of a demand draft in favour of ‘Securities and Exchange Board of India’ Payable at Mumbai or”, shall be omitted;(ii)after the words “or any other” and before the word “mode”, the word “electronic” shall be inserted.
(5) In Schedule II, in Chapter I, after Clause 11, following clause shall be inserted, –
“11A. The applicant shall be provided opportunity of hearing or meeting only before the Internal Committee.”
(6) In the Schedule II, in Chapter VI, in Table VI, the last row shall be substituted with the following
| WHERE THE MAKING OF THE OPEN OFFER IS INFRUCTUOUS |
INFRUCTUOUS BY AN ACT OF THE ACQUIRER |
INFRUCTUOUS BY AN ACT OF THE COMPANY OR BY ANY OTHER REASON |
| RUPEES 1 CRORE OR OPEN OFFER SIZE,WHICHEVER IS HIGHER |
ANY AMOUNT BETWEEN RUPEES 10 LAKHS TO RUPEES 35 LAKHS;
WITH A MULTIPLIER BETWEEN 1 TO 3AS DECIDED BY THE IC OR HPAC OR THE PANEL OF WTMS
|
(7) In Schedule II, in Chapter VI, in Table X shall be substituted with the following table.
TABLE-X
RESIDUARY BA, FOR EACH UNIT OF ALLEGED DEFAULT FOR EACH APPLICANT OR ON JOINT LIABILITY BASIS (AS PER THE SUM OF APPLICABLE AMOUNTS IN CASE OF JOINT APPLICANTS
(8) Part –B of the Schedule –III shall be omitted.
AJAY TYAGI, Chairman[ ADVT.-III/4/Exty./123/2020-21]
Footnote:
1. The Securities and Exchange Board of India (Settlement Proceedings) Regulations, 2018 were published in the Gazette of India on November 30, 2018 vide No. SEBI/LAD-NRO/GN/2018/48, with effect from 1st day of January 2019