Sebi proposes norms for consent settlement of disputes

Under the new norms, entities involved in cases of default proceedings barring cases of insider trading, employing manipulative practices and illegal raising of public money may apply for settlement

GN Bureau | October 15, 2013



The markets watchdog securities and exchange board of India (Sebi) has come out with new norms for settling administrative and civil disputes against defaulters barring cases of insider trading, employing manipulative practices and illegal raising of public money.

According to the consultation paper on the draft Sebi (Settlement of Administrative and Civil Proceedings) Regulations, 2013 released by the markets watchdog, an entity involved in a case barring those listed as exceptions, can file a settlement plea within 60 days of the show cause notice served by Sebi. However, Sebi has clarified that the settlement facility does not exist with entities which have already been part of two earlier settlements.

Listing out a detailed number of conditions under which an entity cannot apply for settlement, the regulator has also said that the new settlement facility would not apply to cases that are being tried in any court or tribunal. This leaves out any hope for the Sahara group of companies to benefit by stalling their case and applying for a settlement.

Also, an entity will not be allowed to apply for a settlement if he/she has applied for a settlement in the last two years. 

In order to settle a case, an entity may be required to pay a settlement amount and other related costs, voluntary suspending registration of the entity, and finally, winding up of business.

In the consultation paper, Sebi has also mentioned that a high powered advisory committee will be set-up for deciding the settlement terms. Further, the quorum of the committee would be three members.

"The high powered advisory committee shall consist of a retired Judge of a High Court and three external experts having expertise in the securities market or for matters connected therewith or incidental thereto," Sebi said.

The regulator has invited suggestions from the general public by October 30, 2013.
 

Comments

 

Other News

Astonishing breadth and depth of ancient Indian knowledge systems

The Greatest Books of Ancient India: Incredible Ideas about Science, Music, Maths, Art and More By Dr. Pradeep Chakravarthy and Dr. R. Thiagarajan Hachette India, 208 pages, Rs 399  

Strong El Nino threat over India`s monsoon, food & water security

India is heading into the southwest monsoon season this year under the shadow of a rapidly strengthening El Nino, with meteorologists warning that the climate phenomenon could significantly disrupt rainfall patterns, intensify heat stress and place additional pressure on the country’s agriculture-d

How corporates can nudge real change

The Business Of Business Is (Not) Just Business: How Behavioural Tools Can Drive Real Change Edited by Sutapa Banerjee, with Foreword by Nadir Godrej HarperCollins, 336 pages, Rs 699  

India stopped jailing people for paperwork. Now comes the hard part

A small pharmacist in Rajkot neglects to change a notice in his store under a little-known clause of a public health law. This was not only a non-compliance matter, but also a criminal offence, and a jail sentence was the punishment under the old system. Not a fine. Not a warning. Jail. Now scale

How to make our cities climate-resilient

Indian cities are growing at a pace that our infrastructure and climate can no longer sustain. This rapid urban sprawl increasingly strains urban systems, overshadowing the severe environmental fallout produced in its wake. The repercussions include Urban Heat Island Effect (UHI), Urban Floods, and many mo

Trump’s China setback pushes US to woo India

A week after Donald Trump’s visit to China – the first by an American president in nine years, US secretary of state Marco Rubio arrived in India on May 23 on a four-day visit aimed at resetting Washington DC’s relations with New Delhi and attending the third Quad ministerial meeting.





Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter