SEBI Consent Orders Don’t Bar Criminal Action: Bombay High Court

The Bombay High Court held that a SEBI consent order cannot shield an accused from criminal prosecution for serious economic offences.

The Court refused to quash two CBI cases arising from the Yes Bank–IDFC IPO fraud, reiterating that settlements under SEBI’s consent mechanism operate only within the regulator’s administrative domain.

The Court ruled that such orders do not affect criminal liability for offences such as cheating, forgery, conspiracy, or corruption under the Penal Code and Prevention of Corruption Act.

The Bench stressed that criminal investigations must proceed independently of regulatory settlements, as SEBI’s framework cannot override statutory mandates governing the prosecution of economic crimes.

[Manoj Gokulchand Seksaria v State of Maharashtra]