Failure to avail fast track settlement permits initiation or continuation of the specified proceeding where an entity does not apply for settlement, fails to remit the settlement amount within the notified period, fails to make payment, or does not submit revised settlement terms. The entity may seek settlement only at a subsequent stage of the proceedings.

Monetary-threshold fast-track settlement applies where the calculated settlement amount does not exceed ten lakh rupees and no disgorgement, remedial term, or regulatory term is applicable. The Internal Committee calls upon the applicant to take the steps specified for revised settlement terms. Upon receipt, the revised settlement term is placed before the Panel of Whole Time Member, and prescribed procedures apply mutatis mutandis.

Violation-based fast track settlement permits the Board to issue a notice requiring an entity to apply for settlement, remit the specified amount, and comply with or undertake to comply with Remedial and Regulatory Terms. It applies to delayed or deficient disclosures, delayed compliance with legal requirements or Board directions, and other defaults determined by the Board. The entity may seek rectification of the settlement amount calculation when filing, subject to the Board's final decision. Settlement follows satisfaction regarding payment and applicable compliance or undertaking.

Fast track settlement applies to settlement proceedings under Chapter VI through two designated forms: violation-based fast track settlement and monetary-threshold-based fast track settlement. In specified proceedings settled under this Chapter, Regulations 23 and 24 are inapplicable except where otherwise provided, and the process applies without operation of those regulations.

The Panel of Whole Time Member may accept or reject settlement recommendations in covered specified proceedings. On non-acceptance, it may return the application for re-examination of settlement terms or record and communicate reasons for declining the recommendation. On acceptance of a High Powered Advisory Committee recommendation, the applicant must pay the settlement amount through the dedicated payment gateway and comply with all settlement terms and conditions. The Panel may, for recorded reasons based on the case facts and gravity of charges, determine a lower or higher settlement amount.

The High Powered Advisory Committee considers proposed settlement terms, Internal Committee recommendations, the applicant's application, undertakings and waivers, relevant factors, applicant-proposed or revised terms, and other material on record. It may seek revision and return the application to the Internal Committee, then recommends acceptance, modification, or rejection of the settlement term. Its recommendations are placed before the Panel of Whole Time Member.

Settlement terms proposed by an applicant and Internal Committee recommendations are considered by a High Powered Advisory Committee. The Committee may consider powers and discretions conferred on the Panel of Whole Time Member. Its recommendations are determined by majority, but the Judicial Member's recommendation controls where there is no consensus or majority. If the Judicial Member recuses, the majority view of remaining members applies. Where all or all but one members recuse for an application, the Board may constitute another Committee.

Settlement applications are referred to the Internal Committee to assess whether proceedings may be settled and to determine settlement terms. The Committee may obtain information, require personal or virtual appearance, assess market impact, investor loss, and market integrity, and verify disgorgement, investor exit options, and compliance with securities laws. It may permit revised terms within twenty-one days and require an Asset Management Company or investment manager to pay settlement amounts for a Pooled Investment Vehicle. Post-meeting terms and recommendations are placed before the High Powered Advisory Committee.

Interest awarded on enhanced compensation under Section 28 of the Land Acquisition Act, 1894 retains the character of enhanced compensation because it is payable on the excess amount determined on enhancement and remains attached to that award until payment. It differs from Section 34 interest, which compensates delayed payment of the original award. Provisions treating certain compensation-related interest as income from other sources, and principles concerning Section 34 interest, do not apply. Section 28 interest is a capital receipt for the land loser and is not subject to tax deduction at source.

Internal Committees for settlement of administrative and civil proceedings must be constituted by the Board from among its officials. Each committee must comprise one Board officer holding the rank of Chief General Manager, together with such other Board officers as the Board specifies. The Board may constitute as many Internal Committees as are required for purposes of regulations governing settlement of administrative and civil proceedings.

Interest is payable on amounts due in specified proceedings, including disgorgement of wrongful gains, gains from loss averted, or investor losses. In the absence of a final order, interest accrues at nine per cent per annum from the transaction date until filing of the settlement application. Following a final order, the rate is nine per cent until that order and twelve per cent thereafter until the application is filed. Interest applies to principal only and is not compounded on unpaid interest.

Confidentiality granted by the Board permits a priority-based reduction in the settlement amount. Persons marked first in priority may receive up to ninety percent reduction, second-priority persons may receive up to fifty percent, and third or subsequent priority persons may receive up to twenty-five percent. The reduction applies up to the prescribed ceiling for the relevant priority category in administrative and civil settlement proceedings.

Remedial and regulatory terms may be determined by considering applicant conduct, the gravity and market impact of alleged defaults, market integrity, investor harm, gains from non-compliance, prior proceedings, corrective measures, compliance schedules, deterrence, and investor claims. Settlement may be considered where market, integrity, or investor effects can be adequately remedied through monetary and remedial or regulatory terms. Allegations may be modified where facts disclose a different default, and applicable defaults may be categorised according to the facts and circumstances.

Settlement remedial and regulatory terms may include enhanced compliance controls, independent review, training, audit and reporting requirements, business restrictions, management exit, clawback, refunds, securities cancellation or lock-in, and market-access restrictions. Specified proceedings may require stock-exchange and financial-statement disclosures where alleged violations affect audited accounts. Alleged diversion or siphoning of funds requires restoration to the company with interest, while related trading gains or losses averted may inform settlement terms. Relevant disclosures may be made without admission or denial of findings.

Regulation 16 provides a mitigating-factor framework for settlement terms, allowing applicable factors a base value of 0.20 each, subject to a maximum of five factors. Mitigation includes impaired capacity for investor restitution, minimal participation, exceptional cooperation, voluntary acceptance of responsibility, corrective measures, limited reporting delays without undue gain or loss, compensation and disgorgement, specified disclosure circumstances, financial distress, changes in management or control, and non-benefiting independent directors.

Settlement amount calculation applies aggravating factors at a base value of 0.20 for each applicable factor, subject to a maximum of five factors. Factors include obstruction of examinations or proceedings, misleading or withheld information, prolonged misconduct, significant client loss, disregard of prior guidance, sophisticated planning, market infrastructure or liquidity jeopardy, abuse of trust or special skill, key-operator status, financial benefit, repetitive default, and reckless compliance failures. Search and seizure and other appropriate case-specific circumstances may also be considered.

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.

Regulatory action factor (R) equals the aggregate of values assigned to administrative warnings and orders issued against an applicant. It assigns zero where no prior order exists, 0.10 for each administrative warning, 0.20 for each settlement order, and 0.30 for each adverse order. Orders stayed by a tribunal or court remain included in calculating R.

The stage-of-proceeding factor (S) determines settlement valuation according to the status of an enforcement proceeding when the settlement application is filed. Different values apply from voluntary or suo motu settlement through proceedings before a show cause notice, after a show cause notice, before designated or Board-level forums, the Tribunal, and the Supreme Court. For multiple proceedings arising from the same cause of action, the most advanced stage governs the applicable factor.

Settlement base amount is calculated by applying applicant-specific multipliers to the minimum applicable penalty and cannot be below an imposed penalty. Amounts are calculated and aggregated for each count of default, while a single default attracting multiple violations takes the higher applicable amount. The base amount is doubled for a lead conspirator, mastermind or key operator, and an independent director is treated as an executive director where implicated in benefiting from or actively participating in fraud. Specified conduct may be treated as one count, subject to adjustment of default counts based on case facts.