Sebi to provide greater clarity to justify quantum of fines

To ensure greater transparency, market regulator Sebi has started providing additional clarity in its

RELATED ARTICLES

orders to justify the quantum of penalties imposed for defaults and other violations.

Sebi, which can levy penalties of up to Rs 25 crore or three times any ill-gotten gains (whichever is higher), has decided that its adjudicating officers would clearly mention the mitigating factors in their orders to justify the fines they impose for violation of norms, official sources said.

The decision was taken as part of efforts to streamline the interpretation of the monetary penalty provisions under securities laws. Besides, opinions given by the Attorney General on this issue were also taken into account.

Sebi's decision follows instances where the Securities Appellate Tribunal (SAT) had asked the regulator to justify the quantum of penalty imposed. There have been cases when SAT has set aside or modified the penalty imposed by Sebi and the move is helped at improving the chances of a penalty standing legal scrutiny.

Besides, it would help bring in greater transparency in the enforcement actions of the capital markets regulator.

The Securities and Exchange Board of India (Sebi) can impose penalties for failure to furnish information, fraudulent and unfair trade practices, and defaults.

In most cases, the penalty is Rs 1 lakh for each day of failure, subject to a maximum of Rs 1 crore. For insider trading, the fine can go up to Rs 25 crore.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • After euphoric rally, Q4 numbers will show the ugly belly of India Inc

    In the last one year, equity indices have clocked spectacular gains.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Today's Columns

Taslima Nasreen

Where priorities play googly

Many say that to keep India’s hopes alive in the ...

Purnendu Ghosh

Be afraid of how you spend your anger

To develop a cost effective product in a techno-bulged industry ...

Shona Adhikari

Anjolie Ela Menon, the storyteller, is back

Anjolie Ela Menon, one of India’s most celebrated artists, is ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture