Markets regulator Sebi is considering changes to its settlement norms by bringing in a new provision that would enable settling all 'insignificant' cases without any "market-wide impact" on payment of certain charges.
The cases pertaining to serious securities market violations, which may have severe impact on the markets, would be left out of the consent framework, Sebi Chairman U K Sinha said today.
In the consent settlement process, the entity facing a probe by Sebi is subjected to certain fees and restrictions without admission or denial of alleged irregularities, and the regulator thereafter drops its charges and the investigations with a caveat that all disclosures made to it are correct. The case can still be re-opened if some new facts come up later.
In the past, Sebi has refused consent settlement in some big cases including one Reliance IndustriesBSE -0.30 % and its erstwhile subsidiary Reliance Petroleum for alleged insider trading.
After Sebi refused to allow consent settlement, the Mukesh Ambani-led company had challenged the decision at the SAT, but its plea was rejected there also. Sebi is yet to pass its order in this case and believe that the changes in settlement norms may pave the way for RIL to make a fresh attempt at settlement process.
In the consent settlement process, the entity facing a probe by Sebi is subjected to certain fees and restrictions without admission or denial of alleged irregularities, and the regulator thereafter drops its charges and the investigations with a caveat that all disclosures made to it are correct. The case can still be re-opened if some new facts come up later.
In the past, Sebi has refused consent settlement in some big cases including one Reliance IndustriesBSE -0.30 % and its erstwhile subsidiary Reliance Petroleum for alleged insider trading.
After Sebi refused to allow consent settlement, the Mukesh Ambani-led company had challenged the decision at the SAT, but its plea was rejected there also. Sebi is yet to pass its order in this case and believe that the changes in settlement norms may pave the way for RIL to make a fresh attempt at settlement process.
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