Gravity factors in settlement applications add reputation-risk and violation-specific values based on the nature of alleged securities-law contravention. Regulation 14 prescribes gravity factors for settlement applications. Applications made without admitting a securities-law violation receive a 0.25 factor ... Summary
Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015
Gravity factors in settlement applications add reputation-risk and violation-specific values based on the nature of alleged securities-law contravention.
Regulation 14 prescribes gravity factors for settlement applications. Applications made without admitting a securities-law violation receive a 0.25 factor for reputation risk. Additional factors apply according to the violation: failure to make an open offer carries 0.25; specified offer-document and insider-trading violations carry 0.50 each; and fraudulent and unfair trade practice violations carry 1.50. Applicable values are added to the reputation-risk factor.
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