Write notes on the following: Consent Order

Consent Order means an order settling administrative or civil proceedings between the regulator and a person (Party) who may prima facie be found to have violated securities laws. It may settle all issues or reserve an issue or claim, but it must precisely state what issues or claims are being reserved. A Consent Order may or may not include a determination that a violation has occurred. The concept of consent orders has been derived from the success of the US Securities and Exchange Commission in resolving the dispute among different entities. USSEC settles over 90% of administrative / civil cases by way of consent orders. It can also slap penalties on defaulters without taking recourse to long drawn litigation in courts. The main objective of these consent orders is to reduce the regulatory costs which can further help in saving time and effort of Securities and Exchange Board of India (SEBI), which was earlier consumed to pursue enforcement actions. Another main objective of consent orders is to provide flexibility of wider array of enforcement actions to achieve the twin goals of an appropriate sanction and deterrence without resorting to a long drawn litigation before SEBI / Tribunal / Courts.