New Delhi, Aug. 14 -- The Securities and Exchange Board of India (Sebi) is proposing to overhaul its settlement framework, aiming to reduce settlement amounts and speed up enforcement by simplifying how payments are calculated and allowing cases to be resolved earlier.

The move follows Sebi's finding that, in cases where settlement applications were rejected or withdrawn and the matter later resulted in a penalty, the settlement amount averaged about eight times the final penalty. Under the proposed framework, the regulator expects that gap to narrow to about four times.

In a consultation paper issued Friday, Sebi proposed replacing the existing method with a formula based on a base amount, adjusted for factors including the stage of pr...