Now Reading: SEBI proposes overhaul to ease settlement of enforcement cases
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SEBI proposes overhaul to ease settlement of enforcement cases
The Securities and Exchange Board of India (SEBI) has proposed a major overhaul of its settlement framework, aiming to clear a backlog of over 1,600 cases pending in appellate tribunals and the Supreme Court. The regulator wants to remove the current 60-day limit that closes the settlement route early, allowing parties to apply even after cases reach the Securities Appellate Tribunal or the Supreme Court.
SEBI's annual report shows Rs 84,962.7 crore across 310 recovery cases are tied up in court-appointed committees or stayed. The proposed changes include a simpler calculation that could cut average settlement costs from eight times the final penalty to about four times, a fast-track process for cases up to Rs 10 lakh, and removal of an additional 20 per cent charge for multiple proceedings. SEBI collected Rs 109.8 crore in settlement charges and Rs 11.3 crore in disgorgement during FY26. The regulator has called for public comments on the proposal.
Indian Opinion Analysis
Livemint.com and thehindubusinessline.com both report SEBI's proposed settlement overhaul as a factual regulatory move, with neutral framing. The Hindu Business Line (HBL) leads with the case backlog, 1,066 appeals in SAT and 539 in the Supreme Court, and quotes former SEBI officers expecting faster resolution. Livemint focuses on the mechanics: the formula change that could halve settlement costs to four times the final penalty, and the fast-track threshold of Rs 10 lakh. Neither source is critical of the regulator, both present the reform as a technical fix. The careful reader should note HBL's deeper litigation-context numbers and Livemint's clearer cost-comparison data. Watch how many of the 499 pending applications are cleared under the new framework in the next quarter.
Coverage: 2 sources, 2 neutral
Sources (2): thehindubusinessline.com (neutral report), livemint.com (neutral report)
This story was synthesised by AI from the 2 sources linked above. Methodology and corrections.
Updated: this story now draws on 2 sources.
