SEBI imposes additional penalty for repeated delivery default

The Securities and Exchange Board of India has issued circular dated August 17 2021, imposing additional penalties for repeated delivery default. The measure has been taken to put a deterrent mechanism in place and also to ensure market integrity and delivery mechanism. The Circular shall come into force on September 17, 2021.

Following additional penalties have been levied by SEBI:

  • An additional penalty of three per cent on repeated delivery defaults of investors.
  • “Repeated default” has been defined, as a buyer or seller fails to meet their delivery obligation three times or more during a six months period on a rolling basis.
  • The penalty levied shall be transferred to Settlement Guarantee Fund (SGF) of the Clearing Corporation.

Initially, SEBI had specified delivery default norms vide circular dated March 23, 2021.


*Tanvi Singh, Editorial Assistant has reported this brief

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