Market regulator Sebi on Wednesday said it has framed a new set of guidelines for consent order mechanism and warned that any corporate house, however big it may be, caught for serious misconducts will be severely dealt with as the market is not a "casino".
"We have come out with a new set of guidelines for the consent mechanism and if any corporates or individuals, however powerful they may be, are found going against that policy, stern action will be taken against them," Securities and Exchange Board of India (Sebi) Chairman
U K Sinha said.
He was answering media queries on what action will be taken against Reliance and
Sahara Groups for their alleged market misconduct.
However, Sinha did not name any of these companies, nor did he reveal the changes in the new consent mechanism, but said if any corporate or individual flouts the regulatory norms stern action will be taken against them as per the law.
Consent mechanism refers to settlement of a case dealing with alleged flouting of securities laws without the individual or company involved admitting or denying guilt. The alleged party gets absolved of the charges by paying a mutually agreed penalty to the Sebi.
"We are taking all possible measures to ensure that nobody is able to avoid the rules of the game, especially on a continuous basis, to harm the interests of the individual and institutional investors," he warned.
"The Sebi is continuously taking measures to improve retail investors' confidence in the equity markets ... the market is not a casino where one can do anything and get away with it," Sinha said.
Sebi Chairman U K Sinha 
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