Sebi will provide incentives to defaulters coming on their own to settle cases before start of enforcement action while excessive delays in filing of settlement applications would be liable for higher charges. In this regard, the Sebi board on Saturday approved various amendments to existing norms for settlement of administrative and civil proceedings.
The markets watchdog said the amendments have been approved in order to streamline and strengthen the settlement process. With the amendments, Sebi would have power to charge interest in case of excessive delays in filing of applications or payment of settlement amount apart from providing incentive for defaulters to come “voluntarily on their own, before initiation of investigation or enforcement action”.
The amended norms would also pave the way for settlement notice before issuance of a formal show cause notice, except those that are excluded from settlement.