The Securities and Exchange Board of India (SEBI) on November 11, 2024, issued the notification regarding the Consultation paper on “Procedure for seeking waiver or reduction of interest in respect of recovery proceedings initiated for failure to pay penalty”.
The following has been stated namely: -
• The Board has approved that the waiver or reduction of interest shall not be applicable in the following cases and the same shall be returned forthwith: -
o Where interest for failure to remit fees to the Board is levied on the intermediaries in accordance with respective intermediary regulations.
o Where the interest on the amount directed to be disgorged or refunded is levied.
• The following procedure is proposed to be issued namely: -
o The application seeking waiver or reduction of interest may be forwarded to the Recovery Officer having the necessary jurisdiction over the matter in the format detailed in Annexure I.
o The application for waiver or reduction of interest may only be sought for the period subsequent to the service of the notice of demand.
o An application may be filed only in the cases where the principal amount due under the notice of demand stands fully paid.
• The comments/suggestions should be submitted by latest by December 02, 2024, through the online web-based form using the following link: https://www.sebi.gov.in/sebiweb/publiccommentv2/PublicCommentAction.do?doPublicComments=yes
• In case of any technical issue in submitting your comment through web based public comments form, you may write to [email protected] and [email protected] with the subject "Public comments on Procedure for seeking waiver or reduction of interest in respect of recovery proceedings initiated for failure to pay penalty&rdquo
