1. The President of India has promulgated the Securities Laws (Amendment) Second Ordinance, 2013 on September 16, 2013 conferring explicit powers on SEBI to settle administrative and civil proceedings under section 15JB of the Securities and Exchange Board of India Act, 1992(SEBI Act), section 23JA of the Securities Contracts (Regulation) Act, 1956 and section 19-IA of the Depositories Act, 1996.
2. The said Ordinance provides that SEBI may, after taking into consideration the nature, gravity and impact of defaults, agree to the proposal for settlement, on payment of such sum by the defaulter or on such other terms as may determined by SEBI in accordance with the regulations made under SEBI Act. The said Ordinance further provides that the settlement proceedings shall be conducted in accordance with the procedure specified in the regulations made under SEBI Act. A corresponding provision as clause (da) has also been inserted in sub-section (2) of section 30 of SEBI Act enabling the Board to frame regulations providing for the terms and procedure for settlement of administrative and civil proceedings.
3. In the light of the above, SEBI proposes to frame SEBI (Settlement of Administrative and Civil Proceedings) Regulations, 2013, a draft of which is annexued. Public comments are invited on the said draft Regulations. Comments may be forwarded by email to ‘firstname.lastname@example.org’ latest by October 30, 2013.