Sebi to revamp settlement rules, curb penalties

India’s capital markets regulator has initiated a review of its rules on case settlement to simplify calculations and address concerns on stringent conditions and inflated penalties, three people familiar with the matter said.

- Apoorva Ajith & Neha Joshi

The goal of the Securities and Exchange Board of India (Sebi) goal is to simplify, expedite and make the process more accessible by allowing parties to voluntarily settle cases rather than await regulatory action, the people said, citing the regulator's meetings with law firms and market participants held earlier this month to seek feedback.

Sebi is expected to release a consultation paper on this by the end of the year, the people said, speaking on condition of anonymity about the regulatory process.