• Violations of Regulations 3 and 4 of SEBI (Prohibition of Insider Trading), Regulations, 1992
• Serious fraudulent and unfair trade practices which cause substantial losses to investors. Except those defaults where the entity makes good the losses due to investors.
• Failure to
  1. Make the Open Offer, except where the entity agrees to make the open offer or in the opinion of the Board, open offer is not beneficial to the shareholders
  2. Redress Investor Grievances
  3. Make disclosures under the ICDR and Debt Securities Regulations which materially affect the right of the Investors
• Non-compliance of summons issued by SEBI or an order passed by the Adjudicating Officer (AO), Designated Member (DM) or Whole Time Member (WTM).
• Front Running
• Default relating to manipulation of net asset value or other mutual fund defaults which results in substantial losses to the unit holders. Except where the entity makes good the losses of the unit holders.
• Any other default by an applicant who continues to be non-compliant with any order passed by the (AO) or (DM) or (WTM).

• Before the completion of pending investigation / inspection or contemplated in respect of the alleged default;
• Where the default is committed within a period of two years from the date of any consent order except where the default is minor in nature.
• Where applicant has already obtained more than two consent orders, for a period of three years, from the date of the last consent order.
• Where more than one proceeding arising out of the same cause of action is pending, unless it is for all the proceedings.

• Service of the notice to show cause, including supplementary notices, if any, issued by the Designated Authority (DA)/AO, DM and WTM, whichever is later.
• this circular, if the proceedings before the DA/AO, DM and WTM are pending as on that date.

• Only one opportunity shall be granted to the Applicant to resubmit the rectified application within a period of 15 days from the date of service of the letter from SEBI.
• The Authority within SEBI before whom the enforcement proceeding(s) is pending, in respect of which the consent application is filed, shall be informed about the filing of the said application.
• A consent application may be withdrawn only once, at any stage prior to the consideration of the application by the HPAC.
• In case of rejection of the consent application, no request for reconsideration shall be considered and no subsequent application with respect to the same default shall be considered by SEBI at any stage thereafter.
• The consent application shall be disposed of expeditiously, preferably within a period of six months from the date of registration of the consent application.
• The consent terms may also include other directives viz. disgorgement of ill-gotten profits, etc., if considered necessary

• A minimum Benchmark Amount for each category of default attributable to the default/violation for which the show cause notice is issued or may be issued.
• The Benchmark Amount to take into consideration the penalty imposed by the AO and the order passed by the WTM as the case may be
• Additional amounts for previous defaults/track record of the applicant.
• Weightage given to the stage of the proceeding, nature of the default/violation, gravity of the default/violation, volume traded, price impact, networth, profits made, nature of disclosure not made, its impact, etc.

In our opinion, we feel that the restrictions put in the Amendment Circular were the need of the hour, to make the corporates & intermediaries appreciate that all or any kind of violations cannot be consented to. But at the same time, even amongst the list of restrictive items, HPAC/ WTMs have been given the power to settle any of them, on case to case basis.