SEBI rolls out new settlement framework replacing its 2018 rules
Securities and Exchange Board of India (SEBI) just rolled out a new settlement framework, replacing its old 2018 rules.
The updated regulations, set to come into force the day after 30 days from the date of their notification, are all about making it quicker and easier to resolve financial disputes under SEBI's watch.
SEBI allows formula-based settlements, 20% top-up
Now, settlement amounts will be calculated using a clear formula that considers how far along the case is and any actions already taken.
If companies want things wrapped up fast, there's a special route: pay the amount SEBI decides, plus an extra 20% for specified proceedings still pending before the Board under the one-time 90-day window for entities that did not apply earlier or whose applications were rejected, withdrawn or returned under the 2018 framework.
Plus, firms now get 90 days (up from just 60) to apply for settlements after service of a show-cause notice.
The goal? Less red tape, more efficient resolutions, and better handling of financial missteps, like fund diversions.