Market regulator Sebi is set to put in place a new and detailed mechanism for its 'consent' procedure -- an out-of-court-like settlement through which it settles cases of suspected irregularities by listed companies and various market entities.

Sebi decided to revise the existing consent procedure, after the regulator found that it lacked uniformity and necessary details in the prevailing system, which is in place since 2007. The new consent mechanism, which could be announced soon by the regulator, has been finalized after months of deliberations that began around middle of 2011 and involved consultations within Sebi and with the government officials and outside experts, he added. In the consent process, the entity facing a probe by Sebi is subjected to certain fees and restrictions without admission or denial of alleged irregularities and the regulator thereafter drops its charges and the investigations.