fee for compounding of an offence

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karthikeyan m (Querist)
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02 January 2009 dear sir
i want to know the fee payable for the compunding of an offence - is it as per schedule 10 or is there any maximum ceiling like Rs. 10,000

Ravikumar.G

Ravikumar.G (Expert)
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02 January 2009 Compounding is a process whereby an accused pays compounding charges in lieu
of undergoing consequences of prosecution.

Compounding of offence allows the accused to avoid a lengthy process of criminal prosecution, which would save cost, time, mental agony, etc in return for payment of compounding charges.

Consent Orders can be passed in respect of all types of enforcement or remedial actions including administrative proceedings and civil actions e.g. proceedingsunder Sections 11, 11A(1)(b), 11B and 11D of SEBI Act or under EnquiryProceedings Regulations or Adjudication Rules or equivalent proceedings underthe Securities Contracts (Regulation) Act 1956, Depositories Act 1996 and other civil matters pending before SAT/courts. Compounding of offence can coverappropriate prosecution cases filed by SEBI before the criminal courts.

Ravikumar.G

Ravikumar.G (Expert)
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02 January 2009 Depending upon the facts and circumustances of the case, gravity of alleged violation, interest of investors and the securities market and deterent affect,amount payable by a party will be decided. In pending prosecution cases and cases pending before SAT/courts, the party is also liable to pay legal expensesincurred by SEBI

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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02 January 2009 Composition fee varies according to the crime. However, the maximum will not be more than the fine/penalty prescribed under the respective sections under which the crime relates. Moreover if any additional fee is paid as per schedule X for the matter covered in a crime that will be reduced from the maximum composition fee payable.