SEBI has announced new consent process mechanism.. Accordingly, applicants have to submit their applications to SEBI within sixty days of receiving the show-cause notice along with the prescribed processing fee. A rectified application can be re-submitted only once and within 15 days of being served a letter from SEBI.
The authority before whom the enforcement proceedings are pending would then be informed about the filing of the consent application.
However, the authority will continue with enforcement proceedings except passing of the final order till consent proceedings conclude.
In cases that could attract a criminal complaint, the complaint is kept in abeyance until the outcome of consent proceedings
When consent terms are rejected, enforcement proceedings shall continue.
The High Powered Advisory Committee (HPAC) shall consist of a retired High Court Judge and three other external experts.
The HPAC will be assisted by an internal committee of SEBI.
Applicants have to appear before this internal committee to formulate the terms of consent.
The consent terms would then be placed before the HPAC for its consideration and recommendations.
The HPAC recommendations would then be placed before a panel of two Whole Time Members (WTM) of SEBI. The panel of WTMs may accept or reject the HPAC's recommendations.
The consent terms finally approved by the panel of WTMs, will then be communicated to the applicant.
Applicants have to communicate acceptance of the consent terms within 15 days of receiving the intimation. Non-acceptance or non-communication within stipulated time will lead to rejection of the consent application.
A consent application may be withdrawn only once, at any stage prior to the consideration of the application by the HPAC.
raghavendrarao.k@thehindu.co.in