In little over a month, market regulator Sebi has turned down four consent applications for settling cases related to various violations including that of stock broker norms.
With this, the total number of rejected applications for settlement by Securities and Exchange Board of India (Sebi) has touched 232 ever since the revised rules for consent framework came into effect on May 25, 2012.
Under Sebi's consent mechanism, companies and individuals can seek to settle a case with the market regulator after the payment of certain charges, without admission or denial of any wrongdoings.
The four rejected consent applications, which took place between November 26 and December 31, include the pleas of PUG Stock Brokers and Finquest Securities for violations of stock brokers' norms.
Besides, Sebi has also rejected consent applications of Avail Holding Ltd and Nature India Communique for "non payment of settlement amount."
These two companies have violated Sebi's Substantial Acquisition of Shares and Takeovers Regulations.
Sebi said these pleas have been turned down as they were not found to be in consonance with the consent mechanism. "The pending proceedings in these cases will continue in accordance with law," the regulator noted.
"The rejection of consent applications, however, shall not prejudice the pending proceedings in any manner," it added.
In May last year, Sebi had tightened its regulations for settlement through the consent framework. The regulator has also been making public the names of the rejected applications since earlier this year.
Meanwhile, the market regulator had recently proposed new norms for settlement of administrative and civil proceedings against suspected market defaulters, except in cases of serious violations such as illicit pooling of funds from investors, insider trading and fraudulent and unfair trades.
