Regulatory Alerts2025-01-10
Procedure for seeking waiver or reduction of interest in respect of recovery proceedings initiated for failure to pay penalty
The Securities and Exchange Board of India (SEBI) has issued a circular establishing the procedure for applicants to seek waiver or reduction of interest levied during recovery proceedings for unpaid penalties. The Board has delegated authority to the Panel of Executive Directors for interest amounts below Rs. 2 crores and to the Panel of Whole-time Members for other cases, while explicitly excluding interest on fees or disgorged amounts. Applications must be filed with the Recovery Officer only after the principal amount is fully paid and must demonstrate genuine hardship, circumstances beyond the applicant's control, and cooperation with inquiries, with decisions required within twelve months.
Share