Financial code provides compounding provisions

With no clear provisions in current law, Sebi's consent mechanism relies on circulars, which are often challenged in courts

The new financial code drafted by the Srikrishna Commission has laid down clear provisions for compounding of offences. Through compounding, an accused pays charges in lieu of undergoing prosecution consequences. The process seeks to avoid lengthy legal proceedings and settle financial crime cases. Clauses 412-414 under the draft code talk about elaborate provisions on the procedure for applying for and making a compounding order. It also says an application for such an order has to be disposed off within 90 days. The draft code submitted, alongwith a report by the Financial Sector ...