SEBI introduces Settlement Scheme III on Illiquid Option Cases

March 12, 2024
Current Context: The Securities and Exchange Board of India (SEBI) has introduced a third settlement scheme for entities involved in reversal trades in the stock options segment on BSE in 2014 and 2015.
SEBI introduces Settlement Scheme III on Illiquid Option Cases
  • The scheme commenced on March 11 and concluded on May 10.
  • After the expiry of the scheme period, actions as per the relevant provisions of securities laws will be continued against the entities which do not avail this opportunity for settlement.
  • The scheme would provide a settlement opportunity to all the entities that have executed reversal trades in the stock options between April 1, 2014, and September 30, 2015, against whom proceedings have been initiated and are pending before any authority or forum.
  • By availing the benefit of the scheme, the entities can settle such proceedings and avoid further delay in the conclusion of the said proceedings and the associated long-drawn legal processes or expenses.

Question:

Q.1 Who introduced the third settlement scheme for entities involved in reversal trades in the stock options segment on BSE in 2014 and 2015?
a. The Reserve Bank of India (RBI)
b. The Securities and Exchange Board of India (SEBI)
c. The Ministry of Finance, India
d. The Bombay Stock Exchange (BSE)

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