SEBI/HO/RRD_PoD_TPD/P/CIR/2025/05

CIRCULAR SEBI/HO/RRD_PoD_TPD/P/CIR/2025/05 To, All persons against whom recovery proceedings are initiated. Madam/Sir, Sub: Procedure for seeking waiver or reduction of interest in respect of recovery proceedings initiated for failure to pay penalty . Section 28A of the Securities and Exchange Board of India Act, 1992 ('SEBI Act'), Section 23JB of the Securities Contracts (Regulation) Act, 1956 ('SCRA') and Section 19IB of the Depositories Act, 1996 ('Depositories Act') (collectively referred as "relevant securities laws provisions") provide that during the exercise of powers for recovery of dues, provisions of Sections 220 to 227, 228A, 229, 232, the Second Schedule and the Third Schedule to the Income -tax Act, 1961 and the Income-tax (Certificate Proceedings) Rules, 1962, as in force from time to time, in so far as may be , shall apply with necessary modifications, as if the said provisions and the rules made thereunder were the provisions of these Acts and refer to the amount due under these Acts instead of income -tax under the Income -tax Act . Section 220(2) of the Income-tax Act, 1961 empowers the Recovery Officer of SEBI to recover the outstanding amount along with the applicable interest as specified therein. Section 220(2A) of the Income-tax Act, 1961 confers powers on the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner to reduce or waive the amount of interest paid or payable. In line with the above, the Board has delegated the power to waive or reduce the interest levied only in respect of recovery proceedings initiated for failure to pay penalty, to the Competent Authority provided hereunder: Panel of Executive Directors of SEBI, where the amount of interest sought to be waived or reduced is less than Rs. 2 cror

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