Why Sebi's consent mechanism needs an overhaul

Keep a demarcation on what is to be kept out of consent settlement to deter offences, say experts

Audit firm Price Waterhouse recently moved a consent plea with the Securities and Exchange Board of India (Sebi) to settle an eight-year old investigation relating to the Satyam Computer Services fraud. Earlier, the National Stock Exchange was in talks with Sebi to settle the co-location matter through a consent mechanism. These high-profile cases have once again put a spotlight on the consent route, which helps alleged wrongdoers settle pending matters with Sebi without accepting or denying guilt by undergoing a penal action.

Introduced in 2007, the consent mechanism initially gained popularity among stock market participants, as it helped save time