Capital markets regulator SEBI has constituted a four-member high-powered advisory committee on settlement orders and compounding of offences. According to an update with the Securities and Exchange Board of India (SEBI) on Tuesday, the committee will be headed by retired Bombay High Court judge Vijay C Daga.
The other members of the panel are PK Malhotra, former Law Secretary in the Ministry of Law and Justice; PR Ramesh, former chairman of Deloitte Haskins & Sales LLP and DN Raval, partner, Rawal & Raval Associates.
The panel will function as per the Settlement Proceedings Regulations, 2018 as specified by the regulator. Under the settlement mechanism, an alleged wrongdoer can settle a case pending with the regulator without admitting or denying the offence, by paying a settlement fee.
Settlement mechanism is a tool to ensure speedy and efficient resolution of disputes.
In September, SEBI had proposed changes to the rules governing consent settlement to make the system more effective. The time limit for filing settlement applications should be reduced from 180 to 60 days.
At present, a window of 180 days is provided to the entities to apply for settlement after the receipt of the show cause notice.
SEBI in its discussion paper said, “On most of the occasions, applicants apply for settlement at the end of this time limit. Such delay not only serves the purpose of enforcement process but also hinders early disposal of enforcement proceedings. puts it.”
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