Market regulator rejects 13 consent applications since February 2013

Sebi says proceedings in pending cases to continue in accordance with law

The Securities and Exchange Board of India (Sebi) on Monday revealed it had rejected 13 consent applications between February 19 and April 4, 2013.

“The applications were rejected as they were not found to be in “consonance” with the circular dated May 2012,” Sebi said.

About ten of the 13 consent rejections during this period pertained to alleged violations of insider trading regulations in Kolkata-based Ramsarup Industries.

The names of some of the entities involved include Imtihaan Commercial, Ramsarup Industries, Bimal Kumar Jhunjhunwala, Ashish Jhunjhunwala and Naveen Gupta.

Meanwhile, the other three rejected consent applications pertain to non-compliance of summons.

Sebi has said pending proceedings in these cases will continue in accordance with the law.

Sebi had, in May last year, introduced a new consent framework. The consent mechanism is a settlement of proceedings between the market regulator and the alleged violator without admission or denial of guilt. Sebi may impose a fine and also a voluntary ban in some cases. The process was introduced with a view to cutting down on costs and time involved in the enforcement actions.

Sebi Chairman U K Sinha, last week at a public function, had said Sebi had rejected 150 consent applications after the new system had been put in place. Earlier too, Sebi used to reject over a third of the consent applications, but at the discretion of the officer. The new system has brought transparency and uniformity, Sinha said.