SEBI proposes draft to halve settlement multiplier for securities violations
SEBI just dropped a draft plan to make settling securities law violations quicker and cheaper.
Instead of paying eight times the penalty, violators might soon pay just four times, making it less painful and hopefully cutting down on lengthy court battles.
SEBI draft details criteria and disclosures
The settlement formula will look at how serious the violation is, past offenses, minimum penalties, and where the case stands.
If your first settlement request gets rejected but you fix what went wrong, you can reapply (with a 20% extra fee).
Voluntary debarment or suspension could continue to be used in serious cases and for repeat offenders.
For financial misstatements or fund diversion, applicants could be required to disclose the allegations to investors and stock exchanges and restore diverted funds with interest.
There's also a fast-track option for cases involving settlement amounts of up to ₹1 million, plus lower fees if you refile.
You've got until September 4 to share your thoughts on this draft!