AR Dave Committee

A panel was set up by SEBI under the chairmanship of Supreme Court former Justice A.R. Dave to review the consent mechanism has proposed changes for settling market violations.

• Under the consent mechanism a fine is paid without any admission of wrongdoing. Under consent mechanism norms, someone who anticipates penal actions by SEBI can settle the matter in question by offering SEBI a fee.

Recommendations

• The committee has suggested measures such as confidential settlement, higher penalties on late submission of consent applications and extending the ambit of consent mechanism for any violations being investigated by SEBI.
• The rationale behind the proposed changes ....