Draft norms out for consent settlements

Market regulator Securities and Exchange Board of India (Sebi) on Monday issued draft regulation - the SEBI (Settlement of Administrative and Civil Proceedings) Regulations, 2013 - for settling disputes under the consent mechanism.

Similar to an out-of-court settlement, under the consent process, Sebi settles charges against violators, without admission or denial of guilt, for a penalty. The proposed regulations are in line with a circular issued by Sebi in May 2012 detailing the consent framework.

Sebi has kept serious offences like insider trading out of the ambit of consent settlements. It has also said that an entity will have apply for a settlement within 60 days from its getting a showcause notice.