SEBI Introduces Procedure for Waiver or Reduction of Interest on Penalty Dues

On January 10, 2025, SEBI issued a circular detailing the procedure for seeking a waiver or reduction of interest on unpaid penalties. 

Applicable under relevant securities laws, the circular empowers SEBI panels to decide based on interest amounts: below ₹2 crores by Executive Directors and above ₹2 crores by Whole-time Members. 

Waivers are excluded for fees-related or disgorgement cases. Applications must demonstrate genuine hardship, uncontrollable defaults, and cooperation, with principal dues fully paid. 

Decisions are to be made within 12 months, ensuring procedural fairness. The circular is effective immediately and provides clarity for defaulters under SEBI's recovery framework.