Sebi may reduce time to file consent pleas

The objective of reducing the application deadline is to expedite the consent settlement process

The Securities and Exchange Board of India (Sebi) is planning to tweak the consent mechanism framework, used by alleged wrongdoers, to settle pending cases with the market regulator. 

Sources say Sebi might reduce the deadline to file such applications from two months to just two weeks. According to the current norms, an entity has to submit a consent plea in less than two months after being served with a show-cause notice. 

Under the consent mechanism, an alternative dispute redressal tool, an alleged wrongdoer without accepting or denying the guilt settles the matter by accepting penal action. The provision is used