SEBI proposes simpler predictable settlement framework tied to minimum penalties
SEBI is looking to shake up how regulatory violations get settled, aiming for a process that's simpler, more predictable, and less expensive.
The new plan would tie settlement amounts more closely to the minimum legal penalties but adjust for things like the type of violation and past history, basically making it clearer what you owe and why.
SEBI excludes wrongful profits, investor losses
Wrongful profits and investor losses won't be counted in the base settlement amount anymore (though they'll still need to be paid back).
Interest on those repayments will be set at 9% per year from the transaction date until you apply for settlement, and 12% after a final order.
There's also a fast-track route for smaller cases up to ₹10 lakh that skips some committee reviews, meaning quicker resolutions with less hassle.
SEBI hopes these changes will cut down costs (which are currently way higher than actual penalties) and help prevent long, drawn-out disputes in the market.