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Settlement lets an accused party end a case by agreement with the regulator. Sebi has so far refused it in cases involving diversion of funds or misstated financial accounts, because they can hurt large numbers of investors and damage market integrity. Under the proposal, offenders would have to return the diverted money with interest and make appropriate disclosures to investors. Sebi's view is that an offender willing to bring back the diverted funds along with interest to the company changes whether such a case can be settled. Pratap Venugopal, senior advocate, at the Supreme Court, said settlement is "not synonymous with leniency". "Cases involving widespread investor harm or market-integrity concerns, a settlement backed by meaningful restitution, disgorgement and corrective action could serve investors and the market more effectively than prolonged proceedings,". He said the changes marked a shift towards "a more pragmatic enforcement framework." Sandeep Parekh, managing partner at Finsec Law Advisors, said the existing pricing left accused parties with no reason to settle: "a rational noticee litigates". The new formula, the notice to settle before a show-cause notice and settlement at the appellate stage should change that calculation meaningfully, he said. (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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