Mumbai, Nov. 14 -- The Securities and Exchange Board of India (Sebi) has begun a comprehensive review of its settlement rules to simplify calculations and address growing concerns around inflated amounts and inflexible non-monetary penalties. The regulator is expected to release a consultation paper on this by the end of the year, three people familiar with the matter told Mint.

Earlier this month, Sebi held meetings with law firms and market participants to seek feedback on its settlement mechanism. Participants said the regulator's goal was to make the process simpler, faster, and more accessible by allowing parties to voluntarily settle cases rather than await regulatory action. Sebi's actions could have an impact on pending settlemen...