Write notes on the following: Consent Order

Securities Exchange Board of India has brought the concept of consent order into force for resolving the disputes in a smoother manner through negotiations and discussions instead of lengthy litigation. Consent Order is an order settling administrative or civil proceedings between the regulator and the party who may prima facie be found to have violated securities laws. If the adjudication authority has passed order with the consent of parties, it is not appealable before Securities Appellate Tribunal. When proposal of settlement is submitted by the party, it would be examined by a high powered committee headed by a retired High Court judge. In case of inadequacy, the committee may ask to revise the consent order. After that the committee will forward his views to adjudicating officer. After passing the consent order it will be published through a press release and would be put on SEBI website. Violation of consent order may revive the pending action on which consent order was passed.