An application for settlement proceedings from Mr. Vikas, a registered broker, has been pending with SEBI for a long time. SEBI is of the opinion that alleged default for which settlement proceedings are initiated affect

As per Regulation 5(2) of the Securities and Exchange Board of India (Settlement Proceedings) Regulations, 2018 the Board may not settle any specified proceedings, if it is of the opinion that the alleged default: has market wide impact, or caused losses to a large number of investors, or affected the integrity of the market. Further, as per regulation 6(1) of Securities and Exchange Board of India (Settlement Proceedings) Regulations, 2018, an application may also at any time be rejected on the following grounds: Where the applicant refuses to receive or respond to the communications sent by the Board; Where the applicant does not submit or delays the submission of information, document, Revised Settlement Terms, etc., as called for by the Board; Where the applicant who is required to appear, does not appear before the Internal Committee on more than one occasion; Where the applicant violates in any manner the undertaking and waivers as provided in Part-C of the Schedule-l; Where the applicant does not remit the settlement amount within the period specified in clause (a) of sub-regulation (2) of regulation 15 and/or does not abide by the undertaking and waivers; Where the applicant fails to comply with the condition precedent(s) for settlement within the time as required by the Internal Committee. In the given situation, Board/SEBI rejected Vikas's application for settlement proceedings after his non-appearance before the internal committee of the SEBI/Board for the second time. As per regulations mentioned above, considering that SEBI/Board was of the opinion that the alleged default affected the integrity of the market and also the fact that the applicant who is required to appear, did not appeared before the Internal Committee on more than one occasion, thereby meeting both the criteria under Regulations 5(2)(iii) and 6(1)(c) under which, an application may be rejected. Hence, it may be said that Board/SEBI can reject the application.