Circular regarding Penalty for repeated delivery default (dated – 17.08.2021) – SEBI

• 19th, August 2021
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Circular regarding Penalty for repeated delivery default (dated – 17.08.2021) – SEBI

• In view of the above, in consultation with Clearing Corporations (CCs), the following has been decided:
• 1. In the case of repeated default by a seller or a buyer, for each instance of repeated default, an additional penalty shall be imposed, which shall be 3 % of the value of the delivery default.
• 2. Repeated Default shall be defined as an event, wherein a default on delivery obligations takes place 3 times or more during a six months period on a rolling basis.
• 3. The penalty levied shall be transferred to Settlement Guarantee Fund (SGF) of the Clearing Corporation.
• The circular shall be effective after one month from the date of issuance of the circular.