Settlement Applications
SEBI improving processes to handle rising number of settlement applications
This story was originally published at 21:17 IST on 24 March 2025
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NEW DELHI – The Securities and Exchange Board of India is continuously tweaking and refining the standard operating procedure for handling settlement proposals by market intermediaries and companies against whom enforcement action is being undertaken, its Whole Time Member Kamlesh Chandra Varshney said. The unique feature of SEBI's settlement scheme is that it often ends up getting more money in settlement than what it would have got if that case had been finally adjudicated, Varshney said at a press conference after a board meeting of the stock market regulator.
Varshney said five years ago SEBI used to have 10% of its enforcement action coming to it for settlement. "Today we have 45% coming for settlement," the SEBI member said.
An analysis of SEBI's orders in 2024-25 (Apr-Mar) indicates a steady flow of cases getting settled. In terms of value, the largest-ever settlement amount of INR 6.43 billion was paid by the National Stock Exchange of India Ltd. based on an order issued on Oct 4. SEBI had issued a show-cause notice to NSE in Feb 2023 alleging problems with NSE's software application, called trading access point architecture and network connectivity, used by the exchange in 2008.
Varshney said while SEBI is disposing of around 40 settlement applications every month in the current financial year, the inflow of settlement applications has increased to 60 cases per month. Given the high number of settlement applications, when SEBI forms multiple teams to process them they "look at all instances uniformly and therefore the standard operating procedure is work-in-progress from that perspective," the whole-time member said. End
Reported by Rajesh Gajra
Edited by Saji George Titus
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