Capital markets regulator Sebi has constituted a four-member high powered advisory committee on settlement orders and compounding of offences. The committee will be chaired by Vijay C Daga, retired judge of High Court of Bombay, according to an update with the Securities and Exchange Board of India (Sebi) on Tuesday.

The other members of the panel are - former law secretary in Ministry of Law & Justice, PK Malhotra; ex-Chairman of Deloitte Haskins & Sells LLP PR Ramesh and DN Raval, Partner at Raval & Raval Associates.

The panel will work as per the Settlement Proceedings Regulations, 2018 specified by the regulator. Under the settlement mechanism, an alleged wrongdoer can settle a pending case with the regulator without admission or denial of guilt by paying a settlement fee.

The settlement mechanism is a tool for ensuring speedy and efficient resolution of disputes.

In September, Sebi had proposed to overhaul the rule governing consent settlements to make the system more effective. The time limit for filing settlement applications should be reduced from 180 to 60 days.

At present, entities are provided with a window of 180 days to apply for settlement after receipt of the show-cause notice.

"On most occasions, the applicants apply for settlement towards the end of this timeframe. Such delays not only do not serve the purpose of the enforcement process but also impede the expeditious disposal of the enforcement proceedings," Sebi had said in its discussion paper.