Under the new guidelines, if the action was taken by the Internal Committee (IC) or based on a pre-approved policy of the MII, then the Member Committee (MC) will still handle the review, appeal, or waiver requests, Sebi said in its circular.
If the action was taken by the MC itself, such requests will now be handled by a new mechanism formed by the governing board of the MII.
This new body will include public interest directors and/or independent external professionals, who are not part of the MC.
The governing board are also required to establish a Standard Operating Procedure (SOP) for handling such cases. If members or participants are not satisfied with the outcome of this process, they are free to approach the appropriate legal authorities as per the applicable laws.
Under the current guideline, any request for review, appeal, or waiver of a penalty needs to be presented to the Member Committee (MC) of the concerned MII. These provisions will come into effect 45 days from the date of this circular.
