Mumbai: The Securities and Exchange Board of India, or Sebi, on Friday released new consent order norms, stating that insider trading cases and violations related to open offers can no longer be settled through this route.
As per the circular, certain defaults including insider trading, front running, failure to make an open offer, redress investor grievances and respond to the summons issued by the regulator are excluded from the consent process now.
The regulator said if defaults caused due to fraudulent and unfair trade practices are very serious and have caused substantial losses to investors, it cannot be resolved through consent.
Also, a consent application will be rejected if any violation has been committed within a period of two years from the date of any other such order.
In the consent process, cases of suspected irregularities by listed companies and other market entities.are settled with certain fees and restrictions being imposed without any admission or denial of the alleged wrongdoing. The regular then drops its charges and investigations.