Sebi mulls process to seek waiver of interest on penalty payment

Markets regulator Sebi on Monday proposed a procedure for seeking a waiver or reduction of interest concerning recovery proceedings initiated by it for failure to pay penalty. Under the proposal, the regulator suggested that the applicant's requests for waiver/reduction should be submitted to the relevant Recovery Officer, with documentation supporting the fulfilment of three criteria from Section 220(2A) of the Income Tax Act, 1961. Section 220(2A) allows the waiver or reduction of this interest under specific conditions.