In the consent settlement fashionable since 2007, the entity facing probe is subjected to certain fees and restrictions without having admission or denial of alleged irregularities and Sebi thereafter drops its charges and also the investigations.
An internal study by Sebi has, however, found that different yardsticks has been applied in different consent cases and there is no consistency and any clear-cut uniformity in the manner such cases are handled, sources said.
Subsequently, Sebi has decided to think about a revamp of its consent settlement procedure and is currently working on the necessary regulatory framework for the same, sources said.
The Sebi has also come across cases being settled with entities from same group on several occasion, although a consent order is broadly considered as a warning towards the related party for not repeating similar offences.
The current regulations also give some discretionary powers towards the Sebi officials settling the probe and the regulator would now look at getting a detailed and exhausting rules to be followed uniformly by all it's officials while settling the probe under consent procedure.
The regulator's internal study found that there is a perception about the consent orders being mostly subjective and not adequately transparent in nature and these procedures providing a getaway route to alleged offenders.
Sebi would consider changing consent orders in this type of way, so that they can be taken as a warning from the regulator in addition to a 'name and shame' directive for entities alleged to have indulged in marketplace irregularities, sources said.
The regulator would look at bringing in more clarity how such orders should be framed, as also at what time and by which cases consent orders should be passed, sources added.
Sebi introduced consent negotiation system in April, 2007 with a view to cut down on it's costs, time and efforts in taking up the enforcement actions. So much, the regulator has passed more than 1, 000 consent orders, which consists of those passed against three companies of Anil Ambani group.
Earlier in 06, Sebi settled a probe against Reliance Securities for a settlement charge of Rs 25 lakh along with other settlement terms.
Earlier in January, two other Anil Ambani group firms Reliance Infra and RNRL had reached funds with Sebi after paying consent charges of a record Rs 50 crore plus some other restrictions.