The Securities and Exchange Board of India (SEBI) on January 10, 2025, issued the notification regarding the 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 delegated the power to waive or reduce the interest levied only in respect of recovery proceedings initiated for failure to pay penalty, to the Competent Authority provided hereunder: -
o Panel of Executive Directors of SEBI, where the amount of interest sought to be waived or reduced is less than Rs. 2 crores
o Panel of Whole-time Members, in other cases.
• 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 theinterest on the amount directed to be disgorged or refunded is levied in accordance with the orders passed under section 11, 11B, 11(4) of the SEBI Act.
• The Procedure for application is stated in the notification
This shall come into force on January 10, 2025.
[Notification No. SEBI/HO/RRD_PoD_TPD/P/CIR/2025/05]
