๐๐๐๐โ๐ฌ ๐ฉ๐ซ๐จ๐ฉ๐จ๐ฌ๐๐ ๐๐๐ญ๐ญ๐ฅ๐๐ฆ๐๐ง๐ญ ๐ ๐ซ๐๐ฆ๐๐ฐ๐จ๐ซ๐ค ๐จ๐ฏ๐๐ซ๐ก๐๐ฎ๐ฅ: ๐๐ก๐๐ญ ๐ข๐ญ ๐ฆ๐๐๐ง๐ฌ ๐๐จ๐ซ ๐๐ง๐๐จ๐ซ๐๐๐ฆ๐๐ง๐ญ
The Securities and Exchange Board of India (SEBI)โs proposed overhaul of its settlement framework marks a significant shift in the philosophy of settlement, from an expensive and discretionary exception to a more credible alternative to prolonged enforcement litigation, raising important questions on how the revised framework will operate in practice.
In this context, Mr. Sumit Agrawal, Managing Partner, Regstreet Law Advisors, was quoted by Business Standard and moneycontrol.com.
He observed that the most important changes are the rationalisation of settlement amounts, the removal of double-counting of wrongful gains, clearer treatment of multiple defaults, and the ability to settle even at appellate stages. The real test, according to Mr. Sumit Agrawal, will be whether the final regulations also reduce residual discretion and provide sufficient certainty on when settlement can be refused.
According to Mr. Agrawal, the proposed changes address an important practical reality i.e., settlement cannot work if its economic cost is disproportionately higher than the likely outcome of adjudication. By simplifying the formula and removing double-counted wrongful gains, the new framework should restore the commercial logic of settlement, encouraging earlier resolution of enforcement cases and freeing up regulatory resources for matters that genuinely require adjudication. On market-wide impact cases, he added that the more principled approach asks whether regulatory concerns can be adequately addressed through monetary and non-monetary terms, rather than treating such impact as an automatic bar to settlement.
A settlement framework, in Mr. Agrawalโs view, works best when it is predictable, proportionate, and attractive enough for parties to choose resolution over years of litigation.
Read the full articles at:
1) Business Standard: https://lnkd.in/dEzeUcSp
2) moneycontrol.com: https://lnkd.in/dsdBhexB
Readers are welcome to share their views with Regstreet Law Advisors on info@regstreetlaw.com.
