Now Reading: SEBI proposes faster settlements, may scrap 20% extra charge
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SEBI proposes faster settlements, may scrap 20% extra charge
SEBI has proposed replacing its 2018 settlement rules with a framework that could speed up cases involving amounts up to Rs 10 lakh and remove an additional 20 per cent charge in…
The Story in Brief
SEBI has proposed replacing its 2018 settlement rules with a framework that could speed up cases involving amounts up to Rs 10 lakh and remove an additional 20 per cent charge in some multiple-proceeding settlements. The regulator is seeking public comments until September 4.
Under the proposal, smaller cases would bypass the High Powered Advisory Committee and move from an Internal Committee to a panel of Whole Time Members. SEBI also wants settlement amounts linked to minimum statutory penalties, while wrongful gains and investor losses would continue to be recovered separately through disgorgement. It said proposed settlements were, on average, eight times higher than eventual penalties, and aims to reduce that ratio to about four.
The Indian Opinion
The claim that SEBI is simply going soft on market violations would be premature. Faster processing can help smaller cases, while disgorgement remains separate and interest rates are specified. But the opposite claim, that a formula alone will make settlements fair, is also too easy. Public comments should test whether lower settlement costs preserve deterrence and protect investors. The key number will be whether rejected or withdrawn cases continue to show a wide gap between proposed settlements and final penalties.
Source: timesnownews.com
This story was synthesised by AI from the source linked above.
