From The Economic Times · ET Bureau · · 1m 20s
Sebi Introduces New Settlement Rules
Sebi's new settlement rules simplify calculations and fast-track cases under ₹10 lakh.
In brief
Sebi's new settlement rules simplify calculations and fast-track cases under ₹10 lakh. Sebi has updated settlement rules to calculate amounts without double counting and fast-track cases up to ₹10 lakh. Originally reported by The Economic Times.
Sebi Notifies New Settlement Rules
Markets regulator Sebi has notified new regulations providing a revised formula for calculating settlement amounts and a fast-track route for cases involving settlement amounts of up to ₹10 lakh.
New Settlement Formula
The new formula for calculating the settlement amount will be based on a base amount linked to the minimum penalty prescribed for the violation under securities laws.
Disgorgement of Wrongful Gains
Sebi will separately disgorgement of wrongful gains, loss avoided or loss caused to investors, removing the existing double counting of such amounts while calculating settlement terms.
Fast-Track Settlement Route
Sebi introduced a fast-track settlement route based on both monetary thresholds and the nature of violations, including certain disclosure-related violations.
Monetary Threshold Fast-Track
Under the monetary threshold-based route, cases where the settlement amount does not exceed ₹10 lakh will move directly from the internal committee to a panel of whole-time members.
Violation-Based Fast-Track
For violation-based fast-track settlements, Sebi will issue a notice offering the entity an opportunity to settle by paying the amount specified in the notice.
The takeaway
Sebi has updated settlement rules to calculate amounts without double counting and fast-track cases up to ₹10 lakh.
