Experts Favor Transparent, Uniform Settlement Process

The new standard operating procedure (SOP) for Sebi's settlement mechanism—likely to be introduced soon—needs to be more transparent and provide clarity to stakeholders, said industry participants.

- ANANYA GROVER

Sebi's whole-time member Kamlesh Varshney on Sunday spoke about the SOP.

The existing rules give the regulator flexibility to resolve matters with errant firms and management without them admitting or denying guilt. In recent times, an online calculator was launched to help the process, which has not been too helpful, said experts. Sebi also has discretionary power to recommend a higher amount for settlement, considering various aspects of the case.