Markets regulator SEBI has extended the SEBI Settlement Scheme 2022 for entities dealing in trading in illiquid stock options till January 21, 2023, as a large number of entities have shown interest in availing the scheme.
“It has been observed that during the last few days, a large number of entities have shown interest in availing the scheme. In view of the interest of the entities in availing the scheme, the competent authority has extended the period of the scheme till January 21, 2023. given.” SEBI said.
The settlement scheme had started on August 22 and was to end on Monday.
SEBI had introduced the Settlement Scheme, 2022 on August 19, 2022, to provide one-time settlement to entities that have executed trade reversals in the stock options segment of BSE during the period April 1, 2014 to September 30, 2015. Have given. for which adjudication proceedings were initiated and pending before any forum or authority.
Entities against whom orders for unpaid fines have been passed and recovery proceedings have been initiated are eligible for the scheme, only if an appeal is filed and before the Courts/SAT be pending
Last week, PTI reported quoting sources that a total of 7,000 units have already applied under the scheme. The report suggested that most entities can settle their proceedings by paying only Rs 1 lakh as settlement amount.
This was not the first time that the regulator had given a chance to the entities to settle the cases. In 2020, the capital markets regulator had provided a one-time settlement scheme for such entities. Initially, the scheme was available from 1st August to 31st October, 2020 but later extended till 31st December, 2020 in view of massive disruption due to Covid.
The advantage of participation in the scheme is that the institutions are not subjected to further quasi-judicial proceedings on the same matter. PTI reported last week that the settlement is done even without admitting guilt.
Over 14,000 units were involved in reversal trade in options which were illiquid. Reverse trades are those trades in which a trader buys a particular stock and sells it back to the same person.
