A Digital Blogger's video: Why SEBI Settles With Corrupt Stock Market Players Settlement Process

In 2023, SEBI settled with 58 different companies for a total of 110 Crores. But what is this settlement? A settlement occurs when a company, having breached any of SEBI's regulations and earned money as a result, undergoes an investigation by SEBI. In response, the company submitted a proposal to SEBI expressing its intention to settle the matter. This proposal includes an amount that the company is willing to pay to SEBI, and, in exchange, SEBI agrees not to pursue further investigation in the case. This rule from SEBI has been adopted from the U.S. Securities and Exchange Commission, where similar settlements are routinely reached with major companies. In this video, we will know the complete process of such settlements, exploring how they unfold. Additionally, we will discuss how these settlements assist in addressing frauds or regulatory violations in the Indian stock market. What role does settlement play in such cases, and what are the consequences for companies if a settlement is not reached? In December 2023, there were 8 cases, and in March 2023, there were 9 cases, making a total of 58 cases throughout the year. These cases involved a range of entities, from small to large companies, including investment firms, listed companies, stock brokers, exchanges, Finfluencers, and international banks. Collaboratively, settlements totaling up to 110 crore were reached. The settlements primarily revolved around cases related to insider trading, which is prohibited in India. Whenever a company engages in insider trading, the Securities and Exchange Board of India (SEBI) becomes prepared to make settlements. Also there are numerous other regulations that, when violated, lead to settlements being made. However, it's not necessary that every time only settlements happen; many times penalties are also imposed. Till now, SEBI has settled in 1775 cases, making it difficult to estimate the total amount involved. In those cases where settlements occur, SEBI collects a sum of money from those who have violated regulations. But nothing is done to address the significant losses faced by traders and investors in these cases. While SEBI takes action against those breaking the Regulations by settlement, there is often no compensation for the financial losses experienced by traders and investors. SEBI has been saying for a long time that it is establishing rules and regulations to deal with fraud and those who break them. Sebi negotiates with those who violate regulations and make millions and crores of rupees through these settlements. However, SEBI should also take steps for traders or investors who have genuinely suffered losses, so that their losses can be recovered. To gain a better understanding of the settlement process, watch the entire video. Documents - https://www.sebi.gov.in/enforcement/orders/jun-2023/settlement-order-in-the-matter-of-trading-halt-on-the-national-stock-exchange-of-india-ltd_73222.html https://www.sebi.gov.in/enforcement/orders/jul-2021/settlement-order-in-respect-of-rakesh-jhunjhunwala-and-6-others-in-the-matter-of-aptech-ltd-_51050.html https://www.sebi.gov.in/enforcement/orders/feb-2023/settlement-order-in-respect-of-kantilal-chhaganlal-securities-pvt-ltd-_68428.html https://economictimes.indiatimes.com/markets/stocks/news/kantilal-chhaganlal-securities-pays-rs-31-20-lakh-to-settle-case-with-sebi/articleshow/98280922.cms?from=mdr https://www.sebi.gov.in/enforcement/orders/may-2023/settlement-order-in-respect-of-mr-amit-agrawal-and-mr-murlidhar-agrawal-in-the-matter-of-poonawalla-fincorp-ltd-previously-known-as-magma-fincorp-ltd-_71279.html https://www.sebi.gov.in/enforcement/orders/jan-2024/order-in-respect-of-abhijit-pawar-in-the-matter-of-magma-fincorp-ltd-now-known-as-poonawalla-fincorp-ltd-_80648.html https://www.lexsite.com/eDocs/SO-AB-EFD2-2023-24-7034.pdf Follow us on Social Media Handles: Instagram - https://bit.ly/adb_insta Twitter- https://bit.ly/adb_twt Facebook- https://bit.ly/adb_fb LinkedIn- https://bit.ly/adb_linkdin 🎧 Listen to Our Podcast on Spotify: https://spoti.fi/3JnpmSQ 🎥Subscribe to our Stock Market Learning Channel: https://bit.ly/sp_ytube 🎥Subscribe to our Vlog Channel ADB Vlog - https://bit.ly/adb_vlog ✅Visit Our Website https://www.adigitalblogger.com/ ✅Visit our Hindi Website https://hindi.adigitalblogger.com 00:00 Intro 00:09 What is Settlement? 01:04 Settlement Process 01:28 In which cases is this settlement executed? 03:22 Rakesh Jhunjhunwala Settlement Case 04:46 Nse Settlement Case 06:57 Kantilala Stock Broking Firm Settlement Case 09:14 Conclusion