SEBI mulls out-of-court settlements for fund misuse cases with repayment
Business
The Securities and Exchange Board of India (SEBI) is thinking about letting companies and individuals accused of misusing funds settle their cases outside of court.
If this new rule is considered on September 24, 2026, those involved would have to pay back what they took, with interest, and make appropriate disclosures to investors.
SEBI debates settlements, revenues ₹815 cr
Right now, SEBI does not allow settlements in these cases because it wants to protect market integrity.
But some experts say that making offenders fix their mistakes could help investors more than long legal fights.
SEBI's settlement revenues have already shot up recently (₹815 crore last year compared with ₹104 crore previously).
Plus, SEBI will also discuss a new mutual fund-only category for portfolio management.