SEBI Rolls Out Settlement Calculator

In a bid to streamline and enhance transparency in the calculation of indicative settlement amounts under the SEBI (Settlement Proceedings) Regulations, 2018, the Securities and Exchange Board of India (SEBI) has rolled out the Settlement Calculator (Beta version).

As part of SEBI’s settlement mechanism, alleged wrongdoers can settle pending matters by paying settlement charges without admitting or denying guilt.

Previously, applicants had to estimate the indicative amount (IA) in their applications based on various factors outlined in the regulations. However, the Settlement Calculator now provides fields where applicants can identify violations and select appropriate options regarding their regulatory track record, incorporating details of actions by SEBI and ongoing proceedings.

In cases where the formulae for calculating the IA are inapplicable or cannot be adapted due to the unique nature of the default, SEBI’s high-powered settlement committee will determine the settlement amount. Furthermore, even if an indicative settlement amount is determined through the calculator, the SEBI settlement committee retains the discretion to modify or impose non-monetary settlement terms as necessary.

Accessible on the SEBI website, the Settlement Calculator includes a user-friendly guide video to assist applicants in understanding the settlement process.