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Corporate Laws Central Ministry of Finance Securities Contracts (Regulation) Act, 1956

Review, Appeal or Waiver of penalty requests emanating out of actions taken by the Member Committee

05-Aug-2025 | SEBI/HO/MRD/POD-III/CIR/P/2025/112

SEBI has issued a circular regarding Review, Appeal or Waiver of penalty requests emanating out of actions taken by the Member Committee effective from 19th August, 2025.

By virtue of this circular, SEBI has amended Paragraph 2.2.2 of Chapter 6 of the SEBI Master Circular for "Stock Exchanges and Clearing Corporations" which previously stated that any review, appeal, or waiver of penalty was to be placed before the Member Committee (MC) for its consideration. The amendment now specifies the following:
1. Any request for review, appeal, or waiver of penalty filed against actions taken by the Internal Committee (IC) of the Member Committee, in accordance with the pre-approved policy on regulatory action, shall be placed before the MC for its consideration.
2. Such requests shall be handled by a mechanism established by the Governing Board of the MII, comprising Public Interest Directors and/or Independent External Professionals who are not part of the MC.
3. For further appeals against decisions arising from the MII's appeal mechanism, members or participants are free to approach the appropriate authority as per applicable laws.

Kindly refer to the attached document for more information.

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