SEBI ISSUES NORMS ON CONSENT ORDERS TO SORT OUT DISPUTES

The Securities and Exchange Board of India (Sebi) issued the guidelines for consent orders, which would pave the way for direct resolution of disputes between concerned parties. The guidelines also list out detailed norms for considering requests for composition of offences. Whether the violation was intentional, party’s conduct during the investigation and disclosure of facts are some of the factors to be considered while seeking consent from any party. Major offences such as fraud, market manipulation or insider trading, history of non-compliance and whether the party has undergone any other regulatory enforcement action for the same violation should also be considered before giving the consent order.