The Securities and Exchange Board of India (Sebi) has proposed to revise the settlement rules to align them with the specific nature of violations done by entities, in a bid to make the mechanism more effective.
While SEBI claims procrastination by entities; noticees cry foul for SEBI being non-uniform, excessive and exercising discretion under the garb of mathematical formaule and credibility of HPAC.
One of the criticism in the context of Settlement Regulations has been in the ambiguity on calculation of settlement amount and non-accountability of SEBI for its settlement orders. Shortcut for SEBI is to issue any kind of a Show Cause Notice (as the settlement is without consideration of merits of the case), and then encouraging settlement, some say.
Securities law enthusiasts must read and dissect SEBI Consultation Paper at https://lnkd.in/dMu3SzGB and provide feedback to SEBI latest by October 14, 2021 by 05:00PM by emailing at settlement2021@sebi.gov.in
Meanwhile, one may read The Economic Times – Business Verticals for views of Mr. Sumit Agrawal and Mr. Sandeep Parekh on proposed changes.
