Explain the following: (ii) Compounding of offences under the Securities and Exchanges Board of India (SEBI) Act, 1992.

Section 24A of SEBI Act, 1992 permits compounding of offences by the court where prosecution proceedings are pending. Section 24A of SEBI Act, 1992 reads as under: "Notwithstanding anything contained in the Code of Criminal Procedure, 1973 any offence punishable with imprisonment only, or with imprisonment and also with fine, may either before or after the institution of any proceeding, be compounded by a Securities Appellate Tribunal or a court before which such proceedings are pending." Compounding of offence can cover appropriate prosecution cases filed by SEBI before the criminal courts. Prosecution here means filing of criminal complaints before various criminal courts by SEBI for violation of provisions of securities laws which may lead to imprisonment and / or fine. Compounding of offence can take place at any stage after filing criminal complaint by SEBI. Where a criminal complaint has not yet been filed but is envisaged, the process for consent orders will be followed rather than the one for compounding. Settlement of proceedings through compounding can be sought by any person who is notified that a proceeding may or will be instituted against him / her, or any party to a proceeding already instituted, may, at any time, propose in writing for settlement.