The Securities and Exchange Board of India (SEBI) on Friday proposed to overhaul of its settlement framework to reduce certain settlement charges and making the settlement of enforcement proceedings simpler, faster and more predictable, according to news agency PTI.

Why is SEBI planning to do this?

The move comes after the market regulator consulted stakeholders and reviewed settlement applications filed over the last two years. It found that in cases where settlement was rejected or withdrawn and enforcement proceedings subsequently resulted in penalties, the settlement amounts proposed were, on average, about eight times the penalties finally imposed, as per PTI.