The Securities and Exchange Board of India (SEBI) has issued a circular outlining the procedure for seeking a waiver or reduction of interest on penalty recovery under the SEBI Act, the Securities Contracts (Regulation) Act, and the Depositories Act. The key points include:

1. Waiver Eligibility: The waiver or reduction of interest is available for penalty recovery proceedings but does not apply to interest levied on fees or amounts directed to be disgorged or refunded.
2. Application Procedure: To apply for a waiver, an application must be submitted to the Recovery Officer with all necessary supporting documents.
3. Order Timeline: SEBI will pass an order on the application within 12 months of receiving a complete application.