Settlement scope restrictions limit applications and bar specific defaults from settlement unless exceptional grounds are shown. Regulation 5 sets limits on consideration of settlement applications: applications are barred where the alleged default occurred within twenty four months of a prior settlement, where an earlier application for the same default was rejected (except in exceptional circumstances with additional fees/interest), where the applicant had two settlement orders within thirty six months, or where related audits/investigations remain incomplete. It lists prohibited defaults ineligible for settlement, including insider trading, serious fraudulent or unfair trade practices (such as front running), failure to make open offers, manipulative practices causing investor losses, material nondisclosures by issuers, unlawful fundraising requiring refunds, and non compliance with SEBI notices or orders, while permitting case by case consideration in the interest of investors with written reasons.
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Provisions expressly mentioned in the judgment/order text.
Settlement scope restrictions limit applications and bar specific defaults from settlement unless exceptional grounds are shown.
Regulation 5 sets limits on consideration of settlement applications: applications are barred where the alleged default occurred within twenty four months of a prior settlement, where an earlier application for the same default was rejected (except in exceptional circumstances with additional fees/interest), where the applicant had two settlement orders within thirty six months, or where related audits/investigations remain incomplete. It lists prohibited defaults ineligible for settlement, including insider trading, serious fraudulent or unfair trade practices (such as front running), failure to make open offers, manipulative practices causing investor losses, material nondisclosures by issuers, unlawful fundraising requiring refunds, and non compliance with SEBI notices or orders, while permitting case by case consideration in the interest of investors with written reasons.
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