SEBI Proposes 4x Penalty Settlement Formula, Adds 1 Million Rupee Fast-Track Route
Updated
Updated · Yahoo Finance UK · Aug 14
SEBI Proposes 4x Penalty Settlement Formula, Adds 1 Million Rupee Fast-Track Route
2 articles · Updated · Yahoo Finance UK · Aug 14
Summary
India's markets regulator proposed a new settlement framework that would cut typical settlement amounts to about four times the regulatory penalty, from roughly eight times now.
The draft ties calculations to statutory minimum penalties and factors including the stage of proceedings, prior regulatory action, the gravity of violations, and aggravating or mitigating circumstances.
SEBI also opened a fast-track path for specified violations and cases up to 1 million rupees, while letting previously rejected applicants reapply later with a 20% additional settlement amount.
In serious cases, the regulator would still allow measures such as voluntary debarment or suspension, and in fund-diversion or misstatement cases could require investor disclosure and repayment with interest.
Public comments are open until Sept. 4 as SEBI seeks to simplify settlements, reduce litigation and speed enforcement case resolution.