Entities under probe for ‘serious violations’ in capital markets can seek settlement of the case only if they agree to make good the losses suffered by the investors to Sebi’s satisfaction, the regulator has opined.
Regulations provide for settlement of the cases where proceedings have been or are yet to be initiated, while the cases where prosecution has been initiated are compoundable by the concerned court. The regulator has now issued a guidance note for greater clarity on the cases that can be settled, while changes have also been made for expediting the compoundable matters as suggested by the special Sebi court.