Framework for consent orders on cards today by SEBI
Securities and Exchange Board of India (SEBI) is likely to review the current regulatory framework for
consent order today, as there are complaints that the fee imposed for settling claims are subjective in
nature.
Current regulatory framework for consent order provides an opportunity to those found guilty prima facie
to settle the case after paying a fee.
The SEBI Board had earlier asked for a status report on the consent order, the sources said.
SMC Capital Equity head Jagannadham Thunuguntla, said, revisiting norms for passing consent order
is the process of evolving and is based on market conditions.
The concept of consent order was framed by the market regulator in 2007, reducing regulatory costs and
saving time and efforts required to pursue enforcement actions.
In April 2007, 47 applications have been disposed of by way of consent order and a sum of Rs 190 million
was realized towards settlement charges.
While in 2007-08, 54 applications were disposed of by way of consent and in 2008-09, 428 applications
were disposed of by way of consent.