The Securities and Exchange Board of India (SEBI) has approved the application of summary proceedings to some violations to increase the ease of doing business and enhance the authority’s ability to act efficiently.
The change applies to the SEBI (Intermediaries) Regulations, 2008, and was approved during the . This development relates to market intermediaries and the summary proceedings will apply to the following:
- When a stock exchange or clearing corporation has expelled an entity as a member;
- Where a depository has terminated the depository participant agreement;
- Impermissible return or performance claims;
- Non-payment of fees to the authority;
- Non traceability at the given address, including email;
- Consecutively failing to submit periodic reports; and
- Self-admission of violation of the provisions of securities laws.
The summary proceedings would ensure that all these matters are dealt with expeditiously and efficiently.
The standard operating procedure for these summary proceedings would soon follow. It would provide a framework to ensure that the principles of natural justice are not violated, including that the outcome of summary proceedings is proportionate to the violation.
