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

CAG flags major fiscal lapses in Maharashtra

Maharashtra`s fiscal management has come under sharp scrutiny after the Comptroller and Auditor General (CAG) of India, in its State Finances Audit Report for 2024-25, flagged significant budgetary inefficiencies, accounting irregularities, understatement of key fiscal indicators and widespread governanc

The health sector research we are not doing

Some neglect is loud. This kind is quiet. It sits in research never commissioned, data never collected, questions never asked. In South Asia, that quiet has let the region’s worst health problems stay understudied, underfunded, and out of sight of those who could act.  

Study flags accessibility and last-mile challenges on Mumbai Metro Aqua Line

Mumbai Metro Line 3 (Aqua Line), the city`s first fully underground metro corridor and one of its largest public transport investments, represents a major engineering achievement and has been widely welcomed by commuters. However, the overall commuter experience continues to be constrained by accessibili

Centre intensifies preparedness as El Niño threat looms

Amid uncertainty in the southwest monsoon due to the potential impact of El Niño, the government is addressing the situation with comprehensive preparedness, a clear strategy, and strong ground-level action. While challenges remain, the entire system has been activated in advance and is working proa

India is crossing a climate threshold

On June 28, Delhi recorded a maximum temperature of 41.3°C, four degrees above the seasonal normal. But the “feels like” temperature, which factors in humidity, showed more than 51°C. What the body experienced was very different from what the thermometer recorded.  India`

The Geography of India’s inflation

India today finds itself in an unusual position. At a time when geopolitical conflicts, trade fragmentation, and supply-chain disruptions are reshaping the global economy, the country`s macroeconomic fundamentals remain relatively upwards. Growth remains among the highest in the world, inflation has larg





Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter