SEBI Updates Settlement Rules with Revised Formula and Fast-Track Route
· Business · Economic Times, LiveMint, Zee News
The Securities and Exchange Board of India has rolled out fresh regulations that modify how settlement amounts for securities violations are calculated. The revamped formula curtails the double counting of unjust gains by separately providing for the disgorgement of wrongful gains, loss avoided, or loss caused to investors. Under the notification dated October 6, settlement terms will comprise the settlement amount, disgorgement where applicable, and remedial and regulatory terms. The base amount for settlements will be linked to the minimum penalty prescribed under securities laws and adjusted using factors such as the stage of proceedings, gravity, and legal costs. Additionally, the regulator has introduced a fast-track settlement process for cases involving amounts of up to ₹10 lakh and certain disclosure-related violations.
Why it matters
This regulatory update directly impacts market participants, listed companies, and investors facing regulatory proceedings by streamlining resolution timelines and removing calculation redundancies in settlement terms.
Read the original report — Economic Times
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