Briefly explain compounding of offences under the Securities and Exchange Board of India Act, 1992.

Compounding of offences is a process whereby an accused pays compounding charges in lien of undergoing consequences of prosecution. Section 24A of the SEBI Act, 1992 permits compounding of offences by the court where prosecution proceedings are pending. Section 24A states that 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 the Securities Appellate Tribunal or a court before such proceedings are pending. Compounding of offences 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.