Sebi's settlement process faces delays and rising costs

The Securities and Exchange Board of India (Sebi) is facing criticism for its settlement process, which aims to resolve securities law violations quickly. Critics say the system has become slow and costly, creating challenges for those trying to settle cases. Data shows that settlement amounts have increased significantly recently. For the current financial year, Sebi has collected 851 crore as of March 15, a sharp rise from previous years. Legal experts highlight that with more cases pending, the settlement process is becoming less efficient. Applications waiting for resolution have jumped from 137 to 289 within a year. Lawyers working in this field express concern over the rising number of pending cases and claim it indicates delays. They point out that strict terms and procedural complexities are contributing to these issues. Critics are also worried about Sebi's ability to set settlement amounts. Even with a formula in place, Sebi has the authority to impose higher amounts based on its judgment. Additionally, the introduction of non-monetary terms, like compliance undertakings, has raised alarms. These terms can create extra burdens beyond what was initially communicated to applicants. Legal professionals note that there are limited options for applicants to expedite their cases within Sebi's system, although they can approach higher courts. Sebi has not yet responded to questions about these concerns. Legal experts suggest that while applicants face challenges, they still have some pathways for review if their cases are rejected unfairly, although the courts generally respect Sebi's decisions in these matters.