Sebi's new settlement process under fire

Lawyers hired for settlement proceedings say the data shows slower resolution of the growing cases before Sebi

- Neha Joshi

The Securities and Exchange Board of India's settlement mechanism, designed to offer a faster route to resolving securities law violations over longdrawn court proceedings, is facing mounting criticism over growing delays and perceived discretionary practices.

Intended to streamline enforcement and reduce litigation, the process is increasingly marred by inflated settlement amounts and stringent non-monetary terms, say experts.

Data from Sebi's website reveals a significant surge in settlement amounts collected in 2024-25, reaching ₹851 crore as of 15 March—a sharp increase from the ₹125 crore collected in FY23 and ₹94 crore in FY24.

Even excluding a ₹643-crore settlement in a case involving the National Stock Exchange, its former chief executive Vikram Limaye, and former chief technology officer Umesh Jain, Sebi's collection in FY25 is considerably higher than in the previous two financial years.