Settlement applications may be considered on merits where no prior restraint exists, leaving admissibility to the regulator.

In the absence of any prior restraining order, SEBI retained the power to consider and adjudicate the settlement applications on their own merits in accordance with law. The Court did not decide whether the applications were admissible under the settlement framework and left that to SEBI's determination. The clarification was granted, and the settlement applications were left for decision without prejudice to the parties' rights and contentions.

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Issues: Whether SEBI was free to consider and adjudicate the settlement applications filed by the applicants in respect of the show cause notices, and whether any prior order restrained such consideration.

Analysis: No previous order was found to have restrained SEBI from dealing with the settlement applications. The decision whether the applications could be entertained and how they should be decided lay with SEBI, which was required to examine them on their own merits in accordance with law. The Court declined to decide the permissibility of the applications under the settlement framework and left that matter to SEBI's determination.

Conclusion: SEBI was permitted to consider and adjudicate the settlement applications on their merits in accordance with law.

Final Conclusion: The clarification sought was granted, and the settlement applications were left to SEBI for decision without prejudice to the rights and contentions of the parties.

Ratio Decidendi: In the absence of any restraining direction, the authority vested with settlement jurisdiction may decide settlement applications on their own merits in accordance with law.

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