Sebi to change consent order norms
Capital market regulator Sebi today said it will soon come out new norms for consent orders under which the regulator settles ongoing probes against listed companies on payment of fine.
"It (the new consent order norm) may out in three weeks," Sebi Chairman U K Sinha told reporters here.
In consent settlement, in vogue since 2007, the entity facing probe is subjected to certain fees and restrictions without admission or denial of alleged irregularities and Sebi thereafter drops its charges and the investigations.
The system was introduced with a view to cutting down on its costs, time and efforts in taking up the enforcement actions. So far, the regulator has passed more than 1,000 consent orders, Sources said Sebi has decided to consider a revamp of its consent settlement procedure as under the current framework there is no consistency and any clear-cut uniformity in the way such cases are handled.
Sinha further said that Sebi could consider tweaking the threshold limit of 25 per cent under the takeover code amid apprehensions that this could act as obstacle for merger and acquisition (M&A) activity in India.
"There are some kind of apprehension that the threshold limits will work as obstacles for M&A activity in India, but we are looking at this. If some concrete suggestions comes out...We will consider," he added.
In September 2011, Sebi notified new takeover rule under which an entity buying 25 per cent stake in a listed firm will have to mandatorily make an open offer to buy an additional 26 per cent
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