SEBI Curtails Scope Of Consent Order

In line with its objective to bring clarity in scope and transparency in procedural framework, SEBI has revamped its existing consent order framework vide its circular no. CIR/EFD/1/2012 dated May 25, 2012 ("New Circular"). In terms of the New Circular, SEBI has, inter-alia, modified and to some extent curtailed the scope and applicability of the consent order framework. Some of the important amendments introduced, pursuant to the New Circular, are as follows:

Certain serious offences (as listed below) shall not be considered by SEBI unless the facts and circumstances so warrant:

1. Exclusion of certain defaults

• Offences pertaining to insider trading;
• Serious fraudulent and unfair trade practices causing substantial losses to investors;