SEBI's executive directors, whole-time members to decide on waiver, reduction of interest on unpaid penalty

The market regulator also listed the two conditions under which waiver or reduction will not be entertained.

The market regulator has delegated the power to waive or reduce the interest levied on an entity when it has failed to pay a penalty that was imposed to the panel of the regulator's executive directors (EDs) and the panel of whole-time members (WTMs), depending on the amount of interest sought.

In a circular issued on January 10, the Securities and Exchange Board of India (SEBI) said that the panel of EDs will decide on the waiver or reduction when the interest due is less than Rs 2 crores, and the panel of WTMs will be decide on the same when the interest due is otherwise.

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The circular also said that the waiver or reduction of interest will not be applicable in the following cases:

a) where interest for failure to remit fees to the Board is levied on the intermediaries in accordance with respective intermediary regulations;

b) where the interest 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.

(This copy will be updated.)